li'iillllllin' 


Digitized  by  the  Internet  Archive 

in  2008  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/analysesofrailroOOoldcrich 


OttlStottii^t  ^mfm^ 


CAPITAL  $6,000,000 


SURPLUS  $8,000,000 


E^^^ 


^^^^^^^^^<^^^^^^»^^^ 


ANALYSES  OF  THE 
RAILROAD  CORPORATIONS 


WHOSE  BONDS  ARE  A  LEGAL 

INVESTMENT  FOR    MASSACHUSETTS 

SAVINGS    BANKS 


Including  a  History  of  Each  Corpora- 
tion, Comparative  Capitalization, 
Earnings  and  Traffic  Statistics, 
a  Description  of  the  Bonds  Issued, 
Assumed,  or  Guaranteed  by  Each,  the 
Range  of  Prices  During  the  Years 
1903  to  1912  inclusive,  and  the  States 
of  New  England  in  which  the  Bonds 
Are  Considered  a  Legal  Investment 
For  Savings  Banks 


PRU'ATELY   PRINTED 


BOSTON,  MASSACHUSETTS 

Court  Street     •      •     Temple  Place 


11 


"TM^^^ 


5^^^^^^^^^^^^^^^^^^ 


^<^^^^^ 


^ 


CopynioBT,  1913,  by  Old  Colony  Trust  Comp» 
TirK  Onivehbity  Pkess,  (•amukiuge,  U.  S.  A. 


rM  lIIE  information  contained  herein  is  not  guaranteed, 
■'-  but  has  been  taken  from  sources  which  we  believe  to 
be  reliable.  It  has  all  been  gathered  and  compiled  in 
our  office,  and  every  effort  has  been  made  to  avoid 
inaccuracies. 

Old  Colony  Trust  Company 


271805 


CONTENTS 

PAGE 

Atchison,  Topeka  &  Santa  Fe  Railway  Company 9 

Baltimore  &  Ohio  Railroad  Company      35 

Bangor  &  Aroostook  Railroad  Company 71 

Boston  &  Maine  Railroad  Company 89 

Boston,  Revere  Beach  &  Lynn  Railroad  Company 121 

Central  Railroad  Company  of  New  Jersey 131 

Chicago  &  Northwestern  Railway  Company 147 

Chicago,  Burlington  &  Quincy  Railroad  Company 179 

Chicago,  Milwaukee  &  St.  Paul  Railway  Company 201 

Chicago,  St.  Paul,  Minneapolis  &  Omaha  Railway  Company     .    .    .  227 

Delaware  &  Hudson  Company 243 

Delaware,  Lackawanna  &  Western  Railroad  Company 2(53 

Great  Northern  Railway  Company 281 

Illinois  Central  Railroad  Company 303 

Lake  Shore  &  Michigan  Southern  Railway  Company 337 

Louisville  &  Nashville  Railroad  Company 373 

Maine  Central  Railroad  Company 415 

Michigan  Central  Railroad  Company 443 

New  York  Central  &  Hudson  River  Railroad  Company 465 

The  New  York,  New  Haven  &  Hartford  Railroad  Company    .    .    .  515 

Northern  Pacific  Railway  Company 565 

Pennsylvania  Railroad  Company 589 

Rock  Island  System 655 

Index  to  Bond  Descriptions      687 


ATCHISON,  TOPEKA  &  SANTA  FE  RAILWAY  COMPANY 


ATCHISON.  TOPEKA  &  SANTA  FE  RAILWAY  COMPANY 


HISTORY 

The  Atchison,  Topeka  &  Santa  Fe  Railway  Company,  once  tlie  largest  single  railway  in  the  world, 
has  developed,  under  splendid  management,  into  one  of  the  leading  systems  in  the  West,  and  still 
ranks  among  the  ten  greatest  railroads  in  the  United  States.  The  original  company  was  chartered 
in  Kansas  in  February,  1859,  and  its  main  line  was  completed  by  1873.  The  old  Atchison,  Topeka 
&  Santa  Fe  Railroad  Company  commenced  business  at  a  most  unfortunate  time,  and  sufifered  severely 
in  the  depression  following  the  business  crisis  of  1873. 

Recovering  from  the  effects  of  these  earlier  years,  the  company  began  an  expansion  period  in 
which  over  three  thousand  miles  of  new  road  were  constructed,  and  control  over  three  thousand  five 
hundred  miles  of  other  roads  was  obtained.  This  was  during  the  decade  beginning  in  1880.  By 
1890,  with  its  lease  of  the  St.  Louis  &  San  Francisco  Railroad,  and  the  Colorado  Midland  Railroad 
Companies,  it  was  operating  over  nine  thousand  miles  —  more  than  any  other  railroad  in  the  world. 

The  business  depression  of  1893  forced  the  Atchison,  along  with  numy  other  roads,  into  bank- 
ruptcy, and  it  was  shorn  of  a  considerable  part  of  its  mileage.  From  the  ruins  of  the  old  railroad 
rose  the  new  Atchison,  Topeka  &  Santa  Fe  Railway  Company,  chartered  under  the  laws  of  Kansas 
in  December,  1895. 

The  new  company  absorbed  various  minor  corporations  from  time  to  time,  so  that  by  1912  it 
owned  a  total  of  10,550  miles  of  main  track,  which,  with  over  700  miles  of  road  separatelj^  oper- 
ated and  recently  constructed,  brought  the  total  mileage  of  the  Atchison  System  up  to  over  11,250 
miles.  It  owns  practically  the  entire  capital  stocks  of  the  Cane  Belt  Railroad;  Eastern  Railway  of 
New  Mexico;  Gulf,  Beaumont  &  Great  Northern  Railway;  Gulf,  Beaumont  &  Kansas  City  Railway; 
Gulf,  Colorado  &  Santa  Fe  Railway;  Rio  Grande  &  El  Paso  Railroad;  Santa  Fe,  Prescott  &  Phoenix 
Railway;  Southern  Kansas  Railway  of  Texas;  Texas  &  Gulf  Railway;  Concho,  San  Saba  &  Llano 
Valley  Railroad;  and,  through  the  Eastern  Railway  of  New  Mexico,  the  stocks  of  the  Pecos  River 
Railroad  and  the  Pecos  &  Northern  Texas  Railway  Companies.  The  above  properties  are  operated 
as  an  integral  part  of  the  Atchison  System  and  their  figures  are  included  in  the  following  tables  of 
this  analysis. 

Besides  this,  the  Atchison  controls  the  entire  stock  of  the  Beaumont  Wharf  &  Terminal  Company; 
98%  of  the  capital  stock  and  the  entire  bond  issues  of  the  Garden  City,  Gulf  &  Northern  Railway 
Company;  99%  of  the  stock  of  the  Grand  Canyon  Railway  Company,  and,  jointly  with  the  St. 
Louis  &  San  Francisco  Railroad  Company,  the  stock  of  the  Kansas  Southwestern  Railroad  Company. 
Also,  jointly  with  the  Southern  Pacific  Company,  the  Atchison  owns  the  capital  stock  of  the  North- 
western Pacific  Railroad,  the  Sunset  Railroad,  and  the  Sunset  Western  Railway  Companies.  The 
last-named  properties  are  operated  under  their  own  organizations,  the  Atchison's  interest  appear- 
ing on  its  income  sheet  in  the  form  of  interest  and  dividends  on  the  securities  owned. 

In  December,  1911,  the  California,  Arizona  &  Santa  Fe  Railway  Company  was  incorporated 
in  the  interests  of  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company,  and  took  over  a  group  of 
small  companies,  aggregating  834'  miles,  that  had  been  operated  by  the  Atchison  under  a  lease  from 
the  Southern  Pacific  Company.  The  California,  Arizona  &  Santa  Fe  Railway  Company  has  issued 
capital  stock  of  $50,000,000,  of  which  all  but  the  directors'  shares  are  owned  by  the  Atchison,  To- 
peka &  Santa  Fe  Railway  Company.  The  new  company  has  issued  also  $18,299,695  First  and  Re- 
funding 43/2%  Fifty-year  Gold  Bonds  dated  March  1,  1912.    These  have  been  used  to  retire  a  hke 

[9] 


amount  of  underlying  bonds  of  the  subsidiary  companies  taken  over,  that  were  not  in  the  hands  of 
the  pubHc.     These  bonds  are  an  obhgation  of  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company. 

During  1911  the  Santa  Fe  Dock  &  Channel  Company  was  organized  to  take  over  and  operate 
the  dock  facilities  at  Port  Bolivar,  Texas.  These  properties  were  formerly  owned  by  the  Gulf  & 
Interstate  Railway  Company  of  Texas.  Terminal  facilities  in  San  Francisco  are  supplied  by  the 
Santa  Fe  Terminal  Company  of  California,  all  of  whose  capital  stock,  except  directors'  shares,  is 
owned  by  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company.  These  terminals  comprise  nearly 
one  hundred  acres,  fifty-two  of  which  are  on  the  water  front  and  have  a  total  water  frontage  of  3,800 
feet. 

In  recent  years,  and  especially  since  1907,  the  Atchison  has  laid  out  enormous  sums  of  money  in 
new  construction,  reducing  grades,  eliminating  curves  and  double  tracking.  Along  with  work  of  this 
nature  has  gone  a  continuous  expansion  of  existing  lines;  extensions  which  should  prove  valuable 
feeders  in  the  future.  Just  what  all  this  means  in  actual  dollars  can  be  seen  when  one  considers  that 
during  the  six  years  ending  1912  the  Atchison  spent  out  of  earnings  approximately  $181,000,000  for 
the  maintenance  of  its  existing  tracks  and  equipment.  During  the  same  period  over  $117,000,000 
was  expended  for  additions  and  betterments  to  property  and  for  new  construction. 

PROPERTY 

On  June  30,  1912,  the  lines  of  the  Atchison  System,  whose  operations  are  embraced  in  the  fol- 
lowing statements,  were  as  follows: 

1912  1911 

Atchison,  Topeka  &  Santa  Fe  Railway 8,200.86  7,549.69  miles 

Rio  Grande  &  El  Paso  Railroad 20.21  20.21 

Gulf,  Colorado  &  Santa  Fe  Railway 1,596.06  1,537.48 

Eastern  Railway  of  New  Mexico      225.21 

Pecos  &  Northern  Texas  Railway 478.67  296.12 

Pecos  River  RaUroad 54.24  54.24 

Santa  Fe,  Prescott  &  Phoenix  Railway 364.24 

Southern  Kansas  Railway  of  Texas 124.92  124.92 

Texas  &  Gulf  Railway 125.80  96.14 

Gulf  &  Interstate  Railway  of  Texas 71.97  71.97 

Concho,  San  Saba  &  Llano  Valley  Railroad 60.15  60.15 

Total  mileage  of  the  system  (main  track)       .    .    .     10,732.88     10,400.37 

The  increase  in  mileage  during  the  year  was  332.51  miles.  The  average  miles  operated  in  1912 
were  10,627.92,  an  increase  of  277.79  miles  over  the  average  mileage  operated  during  the  preceding 
fiscal  year.  The  entire  mileage  is  standard  gauge  and  laid  with  steel  rails  ranging  in  weight  from  56 
to  90  pounds  to  the  yard.  The  total  extra  main  track  operated  on  June  30,  1912,  was  826.66  miles. 
Sidings,  etc.,  amounted  to  over  3,600  miles. 

The  system  extends  from  Chicago,  through  Kansas  City  to  Denver,  and  southerly  and  westerly 
through  Santa  Fe  and  Albuquerque,  New  Mexico,  across  Arizona  to  Los  Angeles  and  San  Francisco. 
From  Albuquerque  there  are  important  branches  extending  into  Texas;  one  to  El  Paso,  one  to  Pecos, 
and  one  to  (Jalveston  and  Houston.  This  latter  line  parallels  the  Southern  Pacific  throughout  prac- 
tically its  entire  length.  There  is  a  network  of  Atchison  lines  in  Kansas  which  feed  an  important 
through  line  from  Kansas  Cily  to  Galveston.  A  branch  tapping  the  Beaumont  oil  fields  runs  from 
Port  liolivar  (Galveston  15uy)  to  Longview,  Texas,  and  Oakdale,  Louisiana,  the  latter  being  less  than 
two  hundred  miles  from  New  Orleans. 

The  states  which  the  Atchison  serves  include  Illinois,  Missouri,  Kansas,  Colorado,  Oklahoma, 
Texas,  New  Mexico,  Arizona  and  California.  The  population  of  the  above  in  1900  was  15,188,000. 
In  1910  it  had  increased  to  nearly  20,000,000. 

[  10] 


CAPITALIZATION 

The  capitalization  of  the  Atcliison  System,  as  of  June  30,  1912,  was  as  follows: 

Capital  stock: 

Common $170,129,500 

Preferred 114,173,730 

Total  capital  stock $284,303,230 

Funded  debt  outstanding 342,645,015 

Gross  capitalization      $626,948,245 

Securities  owned 11,655,624 

Net  capitalization $615,292,621 

Net  capital  per  mile  operated $57,892 

Average  miles  operated 10,627.92 

Net  income  to  net  capital 6.3% 

Fixed  charges  to  net  income 49.6% 

Margin  of  safety 50.4% 

There  are  no  rental  obligations  save  nominal  ones  for  certain  terminal  rights,  almost  the  entire 
system  being  directly  owned. 

The  total  capital  stock  outstanding  per  mile  in  1912  was  $26,749.  The  policy  of  the  Atchison 
has  been  to  finance  its  extensions  and  property  betterments  through  the  sale  of  convertible  bonds. 
To  cover  these  outstanding  con^^ertible  bonds,  the  company  has  an  authorized  common  stock  cap- 
ital of  $350,000,000,  of  which  but  $170,129,500  was  outstanding  June  30,  1912.  The  total  preferred 
stock  authorized  was  $131,486,000,  of  which  $114,173,730  was  outstanding  as  above.  In  October, 
1911,  the  stockliolders  of  the  company  granted  the  directors  the  authority  to  sell  the  unissued  bal- 
ance of  this  preferred  stock. 

Of  the  total  funded  debt  outstanding  June  30,  1912,  $78,560,000  were  represented  by  con- 
vertible bonds  and  $201,980,500  by  the  General  Mortgage  and  Adjustment  Mortgage  bonds  of  1995. 
$17,000,000  of  the  total  were  the  Transcontinental  Short  Line,  First  Mortgage  4s  of  1958,  and  the 
balance  were  issues  of  subsidiary  roads.  The  total  bonds  outstanding  per  mile  amounted  to  $32,239. 
The  proportion  of  funded  debt  to  the  total  capitalization  in  1912  was  54%. 

In  the  decade  ending  1912  the  total  capitalization  of  the  system  rose  from  $444,000,000  to 
approximately  $627,000,000  —  an  increase  of  $183,000,000.  Since  1908  there  have  been  large 
increases  in  capital  stock.  In  1909,  $18,603,000;  in  1910,  $43,959,000;  in  1911,  $2,912,000;  and 
for  the  year  ending  June  30,  1912,  $1,699,000  of  common  stock  was  issued  to  retire  convertible 
bonds. 

These  large  capital  increases  should  cause  no  apprehension  on  the  part  of  stockholders  or  se- 
curity holders  while  gross  earnings  continue  to  increase  as  they  have  in  the  past.  The  road  has  un- 
dergone a  process  of  expansion,  not  only  in  mileage  operated,  but  in  volume  of  traffic  carried; 
and  the  growth  of  business  has  been  more  than  sufficient  to  justify  the  capital  expenditures  made. 
A  glance  at  the  statistics  at  the  end  of  this  analysis  will  show  that  the  average  miles  operated  increased 
from  7,341  in  1900  to  10,628  in  1912.  Gross  earnings  increased  from  $6,297  per  mile  in  1900  to 
$10,139  per  mile  in  1912.  The  most  significant  increase,  however,  is  in  the  ratio  of  gross  earnings 
to  gross  capital.     This  ratio  in  1900  was  11.4%  and  in  1912  17.2%,  or  5.8%  better. 

On  October  26,  1911,  the  stockholders  of  the  Atchison  authorized  the  Board  of  Directors  to 
create  at  any  time  an  issue  or  issues  of  convertible  bonds,  the  total  not  to  exceed  $100,289,000. 
To  cover  this  liability  the  authorized  common  stock  of  the  company  was  increased  $100,000,000,  to 
$350,000,000.     Following  is  a  comparison  of  the  average  net  capitalization  per  mile  of  the  Atchison  for 

[11  ] 


the  decade  ending  1912,  with  the  Northern  Pacific  and  the  Chicago,  Burhngton  &  Quiucy,  two  other 
big  crop-carrying  systems: 

Net  capital        Net  income  to 
per  mile  net  capital 

Atchison $56,020  6.1% 

Northern  Pacific 68,208  8.4 

Burhngton 30,670  9.1 

During  the  period  in  question  the  Atchison's  ratio  of  net  income  to  net  capital  dropped  below 
6%  but  twice  —  in  1905  and  1908,  when  5.0%  and  5.7%  were  reported.  This  fact  speaks  impres- 
sively for  the  stability  of  earnings  of  the  system,  and  especially  of  the  ability  of  its  earnings  to  keep 
pace  with  the  increases  in  capitalization. 

The  Atchison's  fixed  charges  in  1912  utilized  49.6%  of  its  total  net  income,  leaving  a  factor  of 
safety  in  earnings  of  50.4%;  that  is,  of  every  $100  of  income  available  for  fixed  charges,  $49.60  was 
thus  spent.  The  Burlington  figures  for  1912  show  that  it  spent  $50  of  every  $100  of  income  available 
for  fixed  charges,  while  the  Northern  Pacific  spent  but  $35.70. 

CHARACTER    OF   TRAFFIC 

In  the  early  years  of  the  reorganized  company,  its  prosperity  depended  to  a  very  great  extent 
upon  agricultural  products.  It  will  be  seen  by  an  examination  of  the  table  below  that  the  ratios 
of  farm  and  animal  products  to  total  freight  have  declined,  while  those  of  mines,  forests  and  manu- 
factures have  shown  considerable  increases. 

Products  of  1896       1906      1908       1909      1910       1911      1912 

Agriculture  ....   30.7%  24.3%  22.8%  23.1%  20.7%  22.3%  22.2% 

Animals 12.4  7.8  7.9  8.2  7.1  7.7  7.3 

Mines 26.5  31.2  32.0  28.3  29.3  28.3  30.9 

Forests      9.4  13.2  12.4  13.7  12.1  11.1  10.2 

Merchandise    .    .    .21.0  23.5  24.9  26.7  30.8  30.6  29.4 


.   21.0  23.5  24.9  26.7  30.8  30.6  29.4 

100.0%     100.0%     100.0%     100.0%     100.0%     100.0%    100.0% 
le  svstem  in  1896  was  7.718.598.      In  1912  the  total  revenue  tons  n 


The  total  tonnage  of  the  system  in  1896  was  7,718,598.  In  1912  the  total  revenue  tons  moved 
were  21,149,984,  of  which  the  largest  item,  6,546,940  tons,  represented  the  products  of  mines.  This 
latter  figure  was  within  1,172,000  tons  of  the  total  tonnage  of  1896.  The  1912  total  compares  with 
20,093,719  tons  carried  in  1911  —  a  gain  of  1,056,265  tons,  or  5.2%. 

About  two-thirds  of  the  company's  business  is  freight.  Following  are  some  of  the  more  im- 
portant freight  statistics  for  the  six  years  ending  1912: 

Year  Freight  Train  load  Freight  Average  rate  per 

density  tons  earnings  ton  per  mile 

1907 737,913  365  $65,500,309  $.0096 

1908 691,927  366  61,848,638  .0095 

1909 639,119  366  64,212,638  .0103 

1910 707,230  389  71,194,055  .0102 

1911 674,538  400  71,787,200  .0103 

1912 655,882  400  71,529,574  .0103 

Freight  density  shows  a  tendeiu-y  to  decline,  but  not  by  reason  of  declining  traffic.  The  cause 
lies  rather  in  the  fact  that  within  tiic  ])t'riu(l  mileage  increased  faster  than  freight  traffic.  Tonnage 
in  1907  was  16,979,395;  in  1912,  21,149,984,  and  in  every  year  but  one  since  1907  a  gain  was 
recorded.  The  marked  advance  in  train  load  tons,  from  365  in  1907  to  400  in  1912,  clearly  demon- 
strates increasing  operating  efficiency. 

[12] 


It  will  be  seen  that  freight  earnings  have  increased  $6,000,000  since  1907,  a  gain  of  9.2%,  while 
the  rate  per  ton  per  mile  advanced  from  $.0090  in  1907  to  $.0103  in  1912. 

The  passenger  lousiness  of  the  system  represents  over  25%  of  the  total  and  is  proving  of  growing 
importance  as  a  revenue  producer.  Passenger  earnings  of  the  system  since  June  1,  1897,  the  first 
complete  year  after  the  reorganization,  have  increased  nearly  379%.  For  the  fiscal  year  1897  they 
were  but  $5, 571', 288,  while  in  1912  the  company  reported  passenger  earnings  of  $27,453,525. 

Following  are  some  of  the  important  passenger  statistics  of  the  system  since,  and  including,  1907: 

Year  Passenger  Passenger  Average  rate  per 

density  earnings  passenger  per  mile 

1907 104,567  $21,171,629  $.0218 

1908 109,270  21,643,427  .0210 

1909 113,129  22,734,505  .0205 

1910 124,746  25,437,181  .0206 

1911 122,616  27,204,867  .0214 

1912 119,889  27,453,525  .0215 

Passenger  receipts  have  risen  $6,300,000  in  six  years,  the  most  substantial  gains  being  reported 
in  1910  and  1911.  The  number  of  passengers  carried  in  1909  was  12,605,697.  In  1910  this  increased 
to  13,675,343,  a  gain  of  over  1,000,000;  in  1911  the  figure  was  14,101,076,  an  increase  of  425,000;  and 
in  1912,  14,042,522.  During  the  fiscal  year  of  1911  passenger  earnings  increased  $1,767,784,  again 
of  7%.  This  gain  was  helped  by  an  increase  of  nearly  one  mill  in  the  average  rate  per  passenger  per 
mile.     In  1912  the  Atchison  practically  paralleled  its  record  passenger  business  of  1911. 

EARNINGS 

The  wonderful  expansion  of  freight  and  passenger  business  in  the  fifteen  years  ending  1912  was 
reflected  in  gross  earnings,  which  gained  250%  during  the  period.  In  1897  the  system  reported 
gross  earnings  of  $30,621,230.  In  the  decade  ending  1907  this  figure  rose  to  $93,683,407,  while 
for  the  fiscal  year  of  1912  gross  earnings  were  $107,752,360.  In  but  one  j-ear  of  the  fifteen 
(1908)  was  there  a  decline.  The  average  miles  operated  in  1897  were  6,444,  while  for  the  fiscal 
year  of  1912  the  system's  mileage  averaged  10,628,  a  gain  of  nearly  4,200  miles.  Following  are  the 
gross  and  net  earnings  of  the  Atchison  for  the  sLx  fiscal  years  ending  1912: 


Year 

Average  miles 

Gross 

Per  mile 

Net 

Per  mile 

Operating 

operated 

earnings 

earnmgs 

ratio 

1907  . 

.    .   9,273 

$93,683,407 

$10,103 

$34,815,506 

$3,756 

62.84% 

1908  . 

.    .   9,415 

90,617,796 

9,624 

29,793,833 

3,209 

67.12 

1909  . 

.    .   9,795 

94,265,717 

9,623 

36,770,522 

3,754 

60.99 

1910  . 

.    .   9,916 

104,993,195 

10,588 

35,231,375 

3,554 

66.44 

1911  . 

.      10,350 

107,565,116 

10,393 

36,796,864 

3,556 

65.79 

1912  . 

.      10,628 

107,752,360 

10,139 

36,479,157 

3,433 

66.13 

MAINTENANCE 

The  following  amounts  have  been  spent  for  maintenance  of  way  and  equipment  since  1907: 

Year                                                                           Maintenance                                          Total  Per  mile 

Way  Equipment  maintenance 

1907 $15,286,062    $11,779,846  $27,065,908  $2,918 

1908 14,120,828     14,246,621  28,367,449  3,013 

1909 12,884,406     13.903,897  26,788,303  2,734 

1910 17,807,136     15,560,047  33,367,183  3,365 

1911 16,059,786     16,686,145  32,745,931  3,164 

1912 16,076,834     16,521,231  32,598,065  3,067 

[  13] 


That  a  most  liberal  policy  has  been  carried  out  by  the  management  in  regard  to  its  maintenance 
charges,  is  attested  by  the  fact  that  during  the  six  years  ending  1912  the  Atchison  put  nearly 
$181,000,000  of  its  earnings  back  into  its  property.  This  is  an  average  of  $30,000,000  annually,  or 
over  $3,000  per  mile. 

The  Northern  Pacific,  in  1912,  put  but  $2,500  a  mile  into  upkeep  of  tracks  and  equipment, 
while  the  Burlington  spent  $3,068,  or  as  much  as  the  Atchison  did,  though  the  Burlington  traffic 
density  was  over  195,000  greater,  implying  thereby  more  wear  and  tear  upon  its  property. 

ADDITIONS  AND   BETTERMENTS 

Besides  the  above  charges  to  maintenance,  the  company  has  made  a  total  expenditure  in  the  six 
years,  1907  to  1912  inclusive,  of  $117,077,433  for  additions  and  betterments,  construction  and  other 
capital  purposes,  as  follows: 

Year  Betterments  Construction        Total  expenditures 

1907 $9,383,159  $6,090,416  $15,473,575 

1908 19,534,571  2,925,437  22,460,008 

1909 4,018,930  896,743  4,915,673 

1910 23,777,754  7,140,667  30,918,421 

1911 25,866,624  5,700,110  31,566,734 

1912 10,276,984  2,066,038  12,343,022 

$117,677,433 

Out  of  earnings  the  company  wrote  off,  in  1907,  $9,600,000  for  improvements,  and  $340,000  in 
1908.  The  income  sheet  shows  an  appropriation  for  betterments  of  $9,000,000  in  1909;  $4,000,000 
in  1910;  $5,000,000  in  1911  and  $3,300,000  in  1912. 

During  the  period  (1907  to  1912  inclusive)  the  Northern  Pacific  spent  nearly  $109,000,000  for 
additions  and  betterments,  the  Burlington  $52,000,000  and  the  Chicago  &  Northwestern  $97,000,000. 

DIVIDENDS 

Dividends  were  first  paid  on  the  common  stock  in  1901  at  the  rate  of  33/0%  per  annum.  From 
1902  to  1906,  4%  was  paid;  in  1907  and  1908,  5}4%;  in  1909,  5%;  in  1910,  1911,  and  1912,  G%. 
Since  1900,  5%  has  been  regularly  paid  on  the  preferred  stock  outstanding. 

On  the  balance  sheet  of  the  Atchison,  as  of  June  30,  1912,  there  appears  a  Profit  and  Loss  ac- 
count of  $20,470,115,  which,with  an  appropriated  surplus  of  $21,580,921, makes  a  total  of  $42,051,036. 
This  is  equivalent  to  14.8%  of  the  total  outstanding  capital  stock. 

STATISTICS 

On  the  following  page  ai-e  the  capitalization,  earnings  and  traffic  statistics  of  the  Atcliison, 
Topeka  &  Sunta  Fe  Railway,  based  on  the  average  miles  operated,  for  the  year  1900  and  for  the 
years  1905  to  1912  inclusive. 


[  14 


ATCHISON,   TOPEKA   &   SANTA  FE    RAILWAY 


Fiscal 
year 


Funded 
debt 


Gross 
capital 


Owned 
by  company 


Net         Average  miles 
capital  operated 


Extra  main 
track 


1900 

$15,556 

$13,894 

$25,642 

$55,092 

$446 

$54,646 

7,341 

82 

1905 

13,751 

12,292 

29,648 

55,691 

754 

54,937 

8,305 

178 

1906 

13,540 

12,094 

32,663 

58,297 

976 

57.321 

8,434 

309 

1907 

12,312 

11,103 

30,645 

54,060 

722 

53,338 

9,273 

363 

1908 

12,127 

10,935 

33,505 

56,567 

802 

55,765 

9,415 

433 

1909 

11,056 

12,410 

31,773 

55,839 

861 

54,978 

9,795 

517 

1910 

11,514 

16,692 

30,456 

58,662 

1,283 

57,379 

9,916 

552 

1911 

11,031 

16,273 

31,797 

59,101 

1,098 

58,003 

10,350 

712 

1912 

10,742 

10,007 

32,239 

58,988 

1,096 

57,892 

10,628 

820 

Fiscal 

Gross  operating 

Maintenance 

Transportation       Net 

Other 

Total 

Fixed 

Surplus  avail- 

year 

revenue 

and  general     operating 

income 

net  income 

charges 

able  for 

Way       Equipment         expense 

revenue 

dividends 

1900 
1905 
1906 
1907 
1908 
1909 
1910 
1911 
1912 


$6,297 
8,233 
9,253 
10,103 
9,624 
9.623 
10,588 
10,393 
10,139 


1,371 
1,479 
1,048 
1,500 
1,315 
1,796 
1,552 


$717 
1,314 
1,271 
1,270 
1,513 
1,419 
1,569 
1,612 


$2,166     $2,549 


1,513    1,554 


2,795 
3,000 
3,429 
3,402 
3,135 
3,670 
3,673 
3,639 


2,753 
3,503 
3,756 
3,209 
3,754 
3,554 
3,556 
3,433 


$36 

159 
81 
71 
118 
257 
213 
241 


$2,585 
2,851 
3,662 
3,837 
3,280 
3,872 
3,811 
3,769 
3,674 


$1,258 
1,436 
1,560 
1,553 
1,783 
1,787 
1.750 
1,703 
1,824 


$1,327 
1,415 
2,102 
2,284 
1,497 
2,085 
2,061 
2,066 
1,850 


Fiscal        Dividends        Other      Surplus     Operating    Total  mai 
year  charges  expenses         tenance 


1905   687  $491  $169 


677 


483   559 


383 


1907  615  609  1,056  4 

1908  606  601  45  245 

1909  582  526  935  42 

1910  575  973  474  39 

1911  551  959  523  33 

1912  537  956  348  9 


65.79 
66.13 


Conducting  Fixed 

transports-  charges 

to  gross     tion  to  gross  to  gross 

earnings         earnings  earnings 


32.6 
29.7 
28.9 
31.3 
28.4 
31.8 
30.4 
30.2 


1.53%         25.1%        34.4% 


34.1 

32.6 
33.9 
35.4 
32.6 
34.6 
35.3 
35.9 


'.0% 


17.5 
17.0 
15.5 
18.6 
18.6 
16.5 
16.4 
17.9 


Gross  Net  income      Per  cent  earned 
earnings         to  net  on  capital  stock 

to  gross         capital 
capital  Preferred   Common 


11.4% 

14.7 

15.9 

18.7 

17.0 

17.2 

18.1 

17.5 


3.5%       6.4% 


10.3 
15.5 
18.5 
12.3 
17.9 


5.9 
11.8 
15.0 

8.1 
12.1 
8.1 
9.4 


Fiscal      Train 
year        mile 
earnings 
(gross) 

1900       $1.82 


1907 
1908 
1909 
1910 
1911 
1912 


2.26 
2.43 
2.38 
2.52 
2.47 
2.52 
2.50 


Maintenance        Conducting        Train  Rate  per  mile 
per  revenue      transportation      mile 

train  mile          per  revenue  earnings  Per  pas-]     Per  ton 

Way      Equipment   train  mile          (net)  senger 


$.251 
.365 
.361 
.397 
.370 
.345 
.417 
.375 
.374 


$.204 
.350 
.310 
.306 
.374 
.372 


.837 
.901 
.790 
.982 


.0216 


.0213  .0094 

.0218  .0096 

.0210  .0095 

.0205  .0103 

.0206  .0102 


.0214 
.0215 


Freight     Train  load    Freight 

density        revenue       to  all 

tons         traffic 


.738      $.0226       $.0098       470,558 


.0010       569,668 


692,604 
737,913 
691.927 
639,119 
707,230 


.0103   674,538 
.0103   655,882 


302 
365 


73% 


freight  and 

company 

cars 

29,395 
40,192 
45,346 
51,126 
56,593 
56,172 
59,651 
66,124 
65,400 


7,177  miles  are  covered  directly  by  the  General  Mortgage. 
1,392  miles  are  covered  through  collateral  by  the  General  Mortgage. 
[  15  ] 


BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Atchison,  Topeka  & 

Santa  Fe  Railway  System,  together  with  the  bases  uiJon  which 

they  have  sold  during  the  decade  ending  December  31,  1912: 


ATCHISON,   TOPEKA   &   SANTA   FE   RAILWAY 
General  Mortgage  Gold  4s 

Dated  December  12,  1895  Maturing  October  1,  1995 

Interest  payable  April  1  and  October  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal,  or  fully  registerable. 
Registered  bonds  of  $1,000  and  multiples. 


Authorized  $165,490,500 


Outstanding  $150,634,500 
Per  mile  .    .  17,580 


Provisions  of      Of  the  total  amount  authorized,  $150,634,500  are  outstanding  as  above,  $1,928,000  are  held 
issue:  in  the  treasury  of  the  company,  $1,852,100  are  reserved  for  extensions  and  improvements, 

and  the  balance  are  reserved  to  retire  certain  bond  issues  of  the  company. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage,  or  by  collateral  trust,  on  8,568.99  miles 

of  road,  terminals,  equipment  and  all  appurtenances.  They  are  secured  by  a  first  mortgage 
on  5,203.71  miles;  in  effect,  by  a  first  mortgage  on  1,392.08  miles  of  road  through  the  deposit 
with  the  trustee  of  all  the  bonds  and  capital  stock  issued  by  the  corporations  operating  the 
same.  They  are  further  secured  by  a  second  mortgage  on  1,884.57  miles  of  road  covered  by 
the  first  liens  of  the  Chicago  &  St.  Louis  First  6s  of  1915,  Chicago,  Santa  Fe  &  California 
First  5s  of  1937,  the  Hutchinson  &  Southern  First  5s  of  1928,  the  San  Francisco  &  San  Joaquin 
Valley  First  5s  of  1940,  the  Atchison,  Topeka  &  Santa  Fe-East  Oklahoma  Division  First  4s 
of  1928,  and  the  Transcontinental  Short  Line  First  4s  of  1958.  They  are  secured  by  a  third 
mortgage  on  89.01  miles,  covered  by  the  first  mortgage  of  the  Chicago  &  St.  Louis  First  6s  and, 
in  addition,  by  stocks  and  bonds  of  a  par  value  of  $31,635,597,  deposited  with  the  trustee. 

Equity:  These  bonds  are  prior  in  lien  to  the  Atchison,  Topeka  &  Santa  Fe  Adjustment  Mortgage  Gold 

4s  of  1995. 


Union  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  3.77  to  4.00  basis 


1903 

3.87 

4.10 

1904 

3.85 

4.05 

1905 

3.80 

3.95 

1906 

3.82 

4.00 

1907 

3.90 

4.50 

1908 

3.92 

4.20 

1909 

3.90 

4.02 

1910 

3.95 

4.10 

1911 

4.02 

4.15 

1912 

4.00 

4.15 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts, Rhode  Island  and  Connecticut. 


f    18 


ATCHISON,   TOPEKA    &    SANTA   FE   RAILWAY 
Adjustment  Mortgage  Gold  4s 

Dated  Deceinher  12,  1895  Maturing  July  1,  1995 

Interest  originally  payable  annually  on  November  1  at  5  Nassau  Street,  New  York.     Interest  is  now  payable 

semi-annually.  May  1  and  November  1,  upon  complying  with  the  terms  of  an  agreement  dated 

September  14,  1899. 

Up  to  July  1,  1900,  interest  was  non-cumulati\e  and  payable,  if  earned; 

since  July  1,  1900,  interest  is  cumulative. 


Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal,  or  fully  registerable. 
Registered  bonds  of  $1,000  and  multiples. 


Authorized  $71,728,000 


Outstanding  $51,346,000 
Per  mile  .    .  5,992 


Provisions  of      Of  the  total  amount  authorized,  $51,346,000  are  outstanding,  as  above;  $382,000  are  held  in 
issue:  the  treasury  of  the  company,  and  the  balance,  $20,000,000,  are  issuable  at  the  rate  of  not 

more  than  $2,000,000  per  annum  for  construction,  improvements  and  betterments,  but  only 
with  the  consent  of  a  majority  of  the  holders  of  the  outstanding  bonds. 

Security:  The  above  bonds  are  secured  by  direct  mortgage,  or  by  collateral  trust,  on  the  same  8,568.99 

miles  of  road,  and  other  property  subject  to  the  lien  of  the  General  Mortgage  Gold  4s  of  1995, 
to  which  this  is  a  junior  issue. 

Trustee:  Central  Trust  Comiiany,  New  York. 

These  bonds  .sold  in  1902  on  a  4.10  to  4.70  basis 


1903 

4.30 

4.70 

1904 

4.15 

4.60 

1905 

4.05 

4.30 

1906 

4.10 

4.40 

1907 

4.30 

5.20 

1908 

4.20 

4.70 

1900 

4.20 

4.35 

1910 

4.20 

4.55 

1911 

4.35 

4.45 

1912 

4.35 

4.60 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Ham])shire  and  Rhode  Island. 


[   19 


ATCHISON,   TOPEKA   &   SANTA  FE   RAILWAY 
Transcontinental  Short  Line  Gold  4s 


Dated  July  1,  1908 


Maturing  July  1,  1958 


Interest  payable  January  1  and  July  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 
Coupon  and  registered  bonds  interchangeable. 


Authorized  $30,000,000 


Outstanding  $17,000,000 
Per  mile  .    .  20,310 


Provisions  of      Of  the  total  amount  authorized,  $17,000,000   are  outstanding  as  above,  and  the   balance, 
issue:  $13,000,000,  have  been  reserved  for  future  improvements,  acquisitions,  or  extensions  at  not 

exceeding  $25,000  per  mile. 

Security:  These  bonds  are  secured  by  a  direct  mortgage,  or  by  collateral  trust,  on  837.11  miles  of  road 

and  all  appurtenances.  They  are  secured  by  a  first  mortgage  on  486.75  miles,  and,  in  effect, 
a  first  mortgage  on  350.36  miles  through  the  deposit  with  the  trustee  of  all  the  bonds  and  stocks 
of  the  corporations  operating  the  above  mileage. 

The  above  bonds  are  a  joint  obligation  of  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company 
and  the  Eastern  Railway  Company  of  New  Mexico,  whose  capital  stock  is  entirely  owned  by 
the  former. 

Equity:  These  bonds  are  prior  in  lien  to  the  General  Mortgage  Gold  4s  of  1995  and  the  Adjustment 

Mortgage  Gold  4s  of  1995. 

Redemption:      These  bonds  are  redeemable  at  110  and  interest,  uj)on  any  interest  date,  upon  90  days'  notice. 

Trustee:  Guaranty  Trust  Company,  New  York. 

These  bonds  sold  in  1908  on  a  4.12  to  4.25  basis 

1909  4.20   4.30 

1910  4.25   4.40 

1911  4.27   4.37 

1912  4.30   4.37 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachusetts 

and  Rhode  Island. 

February  1,  1912,  the  Atchison,  Topeka  and  Santa  Fe  Railway  Company  acquired  the  road 
and  equipment  of  the  Eastern  Railway  Company  of  New  Mexico,  and  the  property  will  hereafter 
be  operated  by  the  former  in  its  name. 


[20] 


ATCHISON,   TOPEKA   &   SANTA  FE   RAILWAY 

Serial  Debenture  Gold  4s 
Series  "A"  to  "L" 

Dated  February  1,  1902  Maturing  February  1,  1913/1914 

Interest  payable  February  1  and  August  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Registered  bonds  of  $1,000,  $5,000  and  multiples. 

Coupon  and  registered  bonds  interchangeable. 

Issued  $30,000,000  Outstanding  $2,978,000 

Provisions  of      The  above  issue  originally  consisted  of  twelve  series  of  $2,500,000  each.     Series  "A"  to  "J" 
issue:  have  been  retired,  leaving  outstanding  Series  "K"  and  "L,"  amounting  to  $2,978,000. 

Security:  These  bonds  are  a  direct  obligation  of  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company, 

but  are  not  secured  by  a  mortgage.  The  company  agrees  in  its  indenture  "that  it  will  not 
execute  a  new  mortgage  on  any  of  its  lines  unless  by  the  terms  of  such  new  mortgage  it  shall 
be  provided  that  all  of  the  above  indentures  then  outstanding  shall  be  included  in  the  debt 
secured  by  such  new  mortgage." 

Redemi)tion:      The  above  bonds  are  redeemable  at  105  and  interest,  by  series  only,  on  any  interest  date,  upon 
90  days'  notice. 

Trustee:  Guaranty  Trust  Company,  New  York. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


ATCHISON,  TOPEKA  &  SANTA  FE  RAILWAY 
Convertible  Gold  4s 

^  ,    ,  [April  1,  1905  Maturing  June  1,  1955 

^''^^'^iJunel,  1909 

Interest  payable  June  1  and  December  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 
Coupon  and  registered  bonds  interchangeable. 

Issued  $20,638,000  Outstanding  $19,661,000 

Provisions  of      Of  the  total  amount  issued,  $977,000  are  in  the  treasury  of  the  company,  and  the  balance, 
issue:  $19,661,000,  are  outstanding  as  above. 

Security:  These  bonds  are  a  direct  obligation  of  the  company,  but  are  not  secured  by  a  mortgage.     The 

indenture  provides  that  no  new  mortgage  shall  be  executed  upon  the  property  of  the  company 
owned  as  of  January  1,  1905,  without  equally  securing  these  bonds. 

Convertibility :  The  above  bonds  are  convertible  at  par  into  the  common  stock  of  the  company  at  any  time  up 
to  June  1,  1918. 

[21  ] 


Redemption:  They  are  redeemable  at  110  and  interest,  on  any  interest  date,  upon  five  months'  notice.  If 
called  prior  to  June  1,  1918,  they  may  be  converted  at  the  option  of  the  holder  into  the  com- 
mon stock  of  the  company. 

Trustee:  Guaranty  Trust  Company,  New  York. 

These  bonds  sold  in  1905  on  a  4.00  basis 


1906 

3.55  to  4.00  basis 

1907 

3.90 

4.55 

1908 

3.75 

4.75 

1909 

3.05 

3.88 

1910 

3.05 

3.95 

1911 

3.30 

3.85 

1912 

3.62 

3.70 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


ATCHISON,   TOPEKA    &   SANTA   FE   RAILWAY 
Convertible  Gold  5s 

Dated  June  1,  1907  Maturing  June  1,  1917 

Interest  payable  June  1  and  December  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 
Coupon  and  registered  bonds  interchangeable. 

Issued  $15,213,000  Outstanding  $15,213,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company, 

but  are  not  secured  by  a  mortgage.  The  indenture  provides  that  no  new  mortgage  shall  be 
executed  against  the  property  of  the  company  owned  as  of  January  1,  1907,  without  equally 
securing  these  bonds. 

Convertibility :  The  above  bonds  are  convertible  at  par  into  the  common  stock  of  the  company  at  any  time  up 
to  May  31,  1913. 

Redenijjtion :  They  are  redeemable  at  110  and  interest,  on  any  interest  date,  upon  90  days'  notice.  If 
called  prior  to  May  31,  1913,  they  may  be  converted  at  the  option  of  the  holder  into  the  com- 
mon stock  of  the  company. 

Trustee:  Standard  Trust  Company,  New  York. 

These  bonds  sold  in  1907  on  a  4.75  to  6.00  basis 

1908  3.90   5.75 

1909  2.00   4.15 

1910  2.00   4.20 

1911  2.00   4.00 

1912  2.90   3.95 

These  bonds  are  considered  a  legal  investment  for  .savings  banks  in  New  Hampshire. 

[22] 


ATCHISON,   TOPEKA   &   SANTA   FE   RAILWAY 

Convertible  Gold  4s 

Dated  June  1,  1910  Maturing  June  1,  1960 

Interest  payable  June  1  and  December  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Registered  bonds  of  $1,000  and  multiples. 

Coupon  and  registered  bonds  interchangeable. 

Issued  $43,686,000  Outstanding  $43,686,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company, 

but  are  not  secured  by  a  mortgage.  The  indenture  provides  that  no  new  mortgage  shall  be 
executed  against  the  property  of  the  company  owned  as  of  January  1,  1907.  without  equally 
securing  these  bonds. 

Convertibility:  The  above  bonds  are  convertible  at  par  into  the  common  stock  of  the  company  at  any  time 
between  June  1,  1913,  and  June  1,  1923. 

Redemption:  They  arc  redeemable  at  110  and  interest,  on  any  interest  date,  upon  90  days'  notice.  If 
called  between  June  1,  1913,  and  June  1,  1923,  they  may  be  converted  at  the  option  of  the 
holder  into  the  common  stock  of  the  company. 

Trustee:  Guaranty  Trust  Company,  New  York. 

These  bonds  sold  in  1910  on  a  3.80  to  4.10  basis 

1911  3.75       4.15 

1912  3.70       4.00 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


ATCHISON,   TOPEKA   &   SANTA   FE   RAILWAY 
Eastern  Oklahoma  Division  First  Mortgage  Gold  4s 

Dated  February  26,  1903  Maturing  March  1,  1928 

Interest  payable  March  1  and  September  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Registered  bonds  of  $1,000  and  multiples. 

Coupon  and  registered  bonds  interchangeable. 

Issued  .$9,603,000  Outstanding  $9,603,000 

Per  mile  .    .  20,058 

Provisions  of      The  original  amount  of  this  issue  authorized  was  $10,000,000,  of  which  $9,603,000  are  outstand- 
issue:  ing  as  above.     The  balance,  $397,000,  will  not  be  issued. 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Atchison,  Topeka  &  Santa  Fe  Railway  Com- 

pany, and  are  secured  by  a  direct  first  mortgage  on  478.75  miles  of  road  including  two  impor- 
tant lines,  one  from  Newkirk  to  Paul's  Valley,  Okla.,  184  miles,  the  other  from  Guthrie,  Okla., 
to  Kiowa,  Kas.,  113  miles. 

[  23  ] 


Equity:  These  bonds  are  prior  in  lien  to  the  General  4s  of  199.5  and  the  Adjustment  4s  of  1995  of  the 

Atchison,  Topeka  &  Santa  Fe  Railway  Company. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  Eastern  Oklahoma  Railway  Company,  who,se  property  is  mortgaged  under  the  indenture 
of  this  issue,  was  incorporated  under  the  laws  of  Oklahoma  in  July,  1899.  Its  property  was  leased 
for  25  years  from  JNIarch  1,  1903,  to  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company  at  an 
amiual  rental  equal  to  fixed  charges.  In  1907  the  property  was  consolidated  into  that  of  the 
latter,  forming  the  Eastern  Oklahoma  Division  of  the  Atchison  System. 

These  bonds  sold  in  1903  on  a  4.35  to  4.40  basis 


1904 

4.05 

4.50 

1905 

3.90 

4.10 

1906 

3.90 

4..30 

1907 

4.50 

4.70 

1908 

4.10 

4.35 

1909 

4.05 

4.30 

1910 

4.20 

4.35 

1911 

4.20 

4.35 

1912 

4.30 

4.55 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachusetts 
and  Rhode  Island. 


SAN   FRANCISCO    &   SAN   JOAQUIN   VALLEY  RAILWAY 
First  Mortgage  Gold  5s 

Dated  October  1,  1896  Maturing  October  1,  1940 

Interest  payable  April  1  and  October  1  at  5  Nassau  Street,  New  York. 
Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $6,000,000  Outstanding  $6,000,000 

Per  mile  .    .  16,012 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  entire  property  of  the  company,  in- 

cluding 374.71  miles  of  road,  equipment,  and  all  future  acquisitions. 

Equity:  These  bonds  are  prior  in  lien  to  the  General  4s  of  1995  and  the  Adjustment  4s  of  1995  of  the 

Atchison,  Topeka  &  Santa  Fe  Railway  Company. 

Rcdein])li()u:  The  above  bonds  are  redeemable  for  the  sinking  fund  at  110  and  interest  on  or  after  January  1, 
1916,  if  not  purchasable  for  less. 

Sinking  fund:  On  or  after  January  1,  1916,  the  company  agrees  to  provide  a  .sinking  fund  which  shall  be  equal 
to  1%  annually  of  the  net  profits  of  the  company  from  that  date  to  January  1,  1921,  2%  annu- 
ally of  the  net  profits  from  January  1,  1921,  to  January  1,  1926,  3%  annually  of  the  profits 
between  1926  and  1931,  4%  annually  of  the  profits  between  1931  and  1936,  and  5%  annually 
thereafter,  the  same  to  be  used  to  retire  this  issue  at  not  exceeding  110  and  interest. 

Trustee:  Bankers  Trust  Company,  New  York. 

[24  ] 


The  San  Francisco  &  San  Joaquin  Railway  Company  was  chartered  February  26,  1895,  and  its 
road  was  opened  for  traffic  in  1898.  It  was  purchased  by  the  Atcliison,  Topeka  &  Santa  Fe  Railway 
Company  in  December,  1898,  Init  was  not  incorporated  into  the  Atchison  System  until  July  1,  1899. 

These  bouds  were  quoted  in  1909  on  a  4.20  basis  (bid). 

1910  4.40 

1911  4.35 

1912  4.37 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachusetts 
and  Rhode  Island. 


CHICAGO    &   ST.   LOUIS   RAILWAY 
First  Mortgage  Currency  6s 

Dated  March  1,  1885  Maturing  March  1,  1915 

Interest  payable  March  1  and  September  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  .$1,000,  registerable  as  to  i)rincipal. 

Authorized  $1,500,000  Outstanding  $1,500,000 

Per  mile   .    .         10,G40 

Security.  These  bonds  are  secured  by  a  first  mortgage  on  141.07  miles  of  road,  including  the  line  from 

Corwith  to  Ancona,  111.,  89.01  miles;  also  lands,  depots,  equipment,  etc. 

Equity:  The  bonds  are  prior  in  lien  to  $560,000  Chicago,  Santa  Fe  &  California  5s  of  1937  and  to  the 

Atchison,  Topeka  &  Santa  Fe  Adjustment  4s  of  1995,  also  to  the  Atchison,  Topeka  &  Santa 
Fe  General  4s  of  1995,  a  sufficient  number  of  which  are  reserved  to  retire  these  bonds  at 
maturity. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Chicago  &  St.  Louis  Railway  Company  was  incorporated  in  Illinois  January  1,  1885,  and  on 
May  1  of  the  same  year  succeeded  to  the  property  of  the  Chicago,  St.  Louis  &  Western  Railroad 
Company.  It  was  consolidated  with  the  Chicago,  Santa  Fe  &  California  Railway  Company,  whose 
property,  in  turn,  was  consolidated  with  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company  in 
1900. 

These  bonds  sold  in  1908  on  a  4.50  basis 

1909  4.05 

1910  4.20 

1911  4.25 
December,  1912  4.25  (bid) 

These  bonds  are  considered  a  legal  investment  for  sa\ings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts, Connecticut  and  Rhode  Island. 


CHICAGO,    SANTA   FE    &  CALIFORNIA   RAILWAY 
First  Mortgage  Gold  5  s 

Dated  January  1,  1887  Maturing  January  1,  1937 

Interest  payable  January  1  and  July  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $5,000. 

Authorized  $35,000  per  mile  Outstanding  $560,000 

Per  mile  .   .         1,280 

Provisions  of      $15,350,000  bonds  have  been  issued,  of  which  $14,790,000  are  deposited  with  the  Trustee  of 

issue:  the  Atchison,  Topeka  &  Santa  Fe  General  4s  of  1995,  and  $560,000  are  outstanding  as  above. 

No  more  of  the  bonds  will  be  issued,  according  to  the  terms  of  the  General  Mortgage  4s  of  1995. 

Security:  The  bonds  are  secured  by  a  direct  mortgage  on  439.93  miles  of  road;  also  on  equipment,  future 

acquisitions,  etc.  They  are  secured  by  a  first  mortgage  on  350.92  miles,  extending  from  An- 
cona.  111.,  to  Big  Blue  Junction,  Mo.  They  are  also  secured  by  a  second  mortgage  on  89.01 
miles,  extending  from  Corwith  to  Ancona,  111. 

Equity:  These  bonds  are  prior  in  lien  to  the  Atchison,  Topeka  &  Santa  Fe  Adjustment  4s  of  1995;  also 

to  the  Atchison,  Topeka  &  Santa  Fe  General  4s  of  1995,  which  provide  for  the  retirement  of 
this  issue. 

Trustee:  Boston  Safe  Deposit  &  Trust  Company,  Boston. 

The  Chicago,  Santa  Fe  &  California  Railway  Comjiany  was  incorporated  in  Iowa  December  3, 
1886,  and  subsequently  acquired  the  railroad  and  other  properties  of  the  Chicago  &  St.  Louis  Railway 
Company.  It  built  an  extension  from  the  Western  terminus  of  tlie  Chicago  &  St.  Louis  Railway  to 
Kansas  City,  Mo.,  which  was  opened  for  business  in  April,  1888.  The  property  of  the  Chicago, 
Santa  Fe  &  California  Railway  Company  was  deeded  to  the  Atchison,  Topeka  &  Santa  Fe  Railway 
Company  in  1900. 

These  bonds  are  considered  a  legal  investment  for  sa\ings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts, Connecticut  and  Rhode  Island. 


[26  1 


SANTA   FE,  PRESCOTT    &   PHOENIX   RAILWAY 
First  Mortgage  Gold  5s 

Dated  September  1,  1892  Maturing  September  1,  1942 

Interest  payable  March  1  and  September  1  at  Bankers'  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $5,000,000  Outstanding  $4,940,000 

Per  mile  .    .  25,330 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  195.35  miles  of  road  extending  from  Ash 

Fork  to  Phoenix,  Ariz.;  also  on  equipment  and  future  acquisitions. 

The  Atchison,  Topeka  &  Santa  Fe  Railway  Company  agrees  that  the  Santa  Fe,  Prescott  & 
Phoenix  Railway  Company  shall  receive  5%  of  the  gross  earnings  of  interchanged  business, 
which  sum  is  to  be  applied  to  the  payment  of  the  principal  and  interest  of  the  above  bonds. 

Equity:  These  bonds  are  prior  in  lien  to  the  Atchison,  Topeka  &  Santa  Fe  Railway-California-Arizona 

Lines  First  and  Refunding  43'^s  of  1962,  a  sufficient  number  of  which  have  been  reserved  to  re- 
tire this  issue. 

Trustee :  Bankers  Trust  Company,  New  York. 

The  Santa  Fe,  Prescott  &  Phoenix  Railway  Company  was  chartered  under  the  laws  of  Arizona 
for  50  years  from  May  27,  1891.  The  road  was  opened  for  traffic  March  13,  1895.  It  was  con- 
trolled by  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company,  through  ownership  of  its  entire 
capital  stock,  except  directors'  shares,  until  December,  1911,  when  it  was  merged  into  the  California, 
Arizona  &  Santa  Fe  Railway  Company.  The  latter  is  entirely  owned  by  the  Atchison,  Topeka  & 
Santa  Fe  Railway  Company. 

These  bonds  sold  in  1904  on  a  4.45  basis 


1905 

4.45 

1906 

4.30  to  4.60 

1907 

4.50 

4.87 

1908 

4.45 

1909 

4.25 

4.40 

1910 

4.45 

4.55 

1911 

4.45 

4.50 

1912 

4.35 

4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


[  27 


HUTCHINSON   &   SOUTHERN  RAILWAY 
First  Mortgage  Gold  5s 

Dated  January  1,  1898  Maturing  January  1,  1928 

Interest  payable  January  1  and  July  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal, 

Authorized  $770,000  Outstanding  $192,000 

Per  mile  .    .        1,360 

Provisions  of      Of  the  $719,000  bonds  issued,  $527,000  are  owned  by  the  Atchison,  Topeka  &  Santa  Fe  Rail- 
issue:  way  Company,  and  $192,000  are  outstanding  as  above. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  141.38  miles  of  line,  extending  from 

Hutchinson,  Kas.,  to  Ponca  City,  Okla.;  also  on  equipment,  etc. 

Equity:  The  bonds  are  prior  in  lien  to  the  Atchison,  Topeka  &  Santa  Fe  General  4s  of  1995  and  to  the 

Adjustment  4s  of  1995. 

Redemption:      These  bonds  are  redeemable  at  105  and  interest  on  any  interest  date. 

Trustee:  Old  Colony  Trust  Company,  Boston. 

The  Hutchinson  &  Southern  Railway  Company  was  chartered  December  21,  1897,  and  its 
property  was  consolidated  with  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company  on  October  1, 
1899. 

These  bonds  were  quoted  in  1910  on  a  5.00  basis  (bid) 
1911  5.00 

December,  1912  4.75  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts and  Rhode  Island. 


GULF,  BEAUMONT   &  KANSAS   CITY  RAILWAY 

First  Mortgage  Sinking  Fund  Gold  6s 

Dated  July  25,  1893  Maturing  August  1,  1913 

Interest  payable  February  1  and  August  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  $500. 
Authorized  $750,000  Outstanding  $591,000 

Per  mile  .    .        9,454 

Provisions  of      Of  the  $750,000  authorized,  $156,000  are  owned  by  the  Atchison,  Topeka  &  Santa  Fe  Railway 
issue:  Company,  $3,000  have  been  cancelled,  and  $591,000  are  outstanding  as  above. 

Security:  The  bonds  are  secured  by  a  first  mortgage  on  62.62  miles  of  line,  extending  from  Beaumont 

to  Rogan,  Texas;  also  on  future  acquisitions. 

[  28  ] 


The  bonds  are  GUARANTEED  as  to  INTEREST  by  the  Gulf,  Colorado  &  Santa  Fe 
Railway  Company,  all  the  stocks  and  bonds  of  which  are  owned  by  the  Atchison,  Topeka  & 
Santa  Fe  Railway  Company. 

Sinking  fund:  A  sinking  fund  of  10%  of  the  net  income  is  applied  annually  to  the  purchase  of  these  bonds  at 
a  price  not  to  exceed  120.  If  bonds  are  not  so  purchasable,  the  sinking  fund  may  be  invested 
in  other  securities. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Gulf,  Beaumont  &  Kansas  City  Railway  Second  5s 

and  6s  of  1913. 

Trustee:  American  Trust  Company,  Boston. 

The  Gulf,  Beaumont  &  Kansas  City  Railway  Company  was  chartered  under  the  laws  of  Texas 
in  1893,  and  its  road  was  opened  for  traffic  in  1899.  The  entire  capital  stock  of  the  company  is  owned 
by  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company,  and  its  property  is  leased  to  June  30,  1913, 
to  the  Gulf,  Colorado  &  Santa  Fe  Railway  Company. 

These  bonds  sold  in  1903  on  a  5.30  basis. 

These  bonds  were  quoted  in  1909,  1911  and  1912  on  a  6.00  basis. 


GULF,  BEAUMONT   &  KANSAS   CITY  RAILWAY 

Second  Mortgage  Gold  5s  and  6s 

Dated  July  27,  1893  Maturing  August  1,  1913 

Interest  payable  February  1  and  August  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  $500. 
Authorized  $750,000  Outstanding  (6s)  $115,500 

(5s)       97,500 
Per  mile    ....         3,400 

Provisions  of      Of  the  $750,000  authorized,  $537,000  are  owned  by  the  Atchison,  Topeka  &  Santa  Fe  Railway 
issue:  Company,  and  the  remainder,  $213,000,  are  outstanding  as  above. 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  62.62  miles  of  line  from  Beaumont 

to  Rogan,  Tex.,  covered  by  the  first  lien  of  the  Gulf,  Beaumont  &  Kansas  City  First  6s  of 
1913. 

The  bonds  are  GUARANTEED  as  to  INTEREST  by  the  Gulf,  Colorado  &  Santa  Fe  Railway 
Company,  all  the  stocks  and  bonds  of  which  are  owned  by  the  Atchison,  Topeka  &  Santa  Fe 
Railway  Company. 

Sinking  fund:  A  sinking  fund  of  10%  of  the  net  income  is  applied  annually  to  the  purchase  of  these  bonds  at 
a  price  not  to  exceed  120.  If  bonds  are  not  so  purchasable,  the  sinking  fund  may  be  invested 
in  other  securities. 

Trustee:  American  Trust  Company,  Boston,  Mass. 

For  history,  see  above. 

[  29  ] 


PRESCOTT    &   EASTERN   RAILROAD 
First  Mortgage  Gold  5s 

Dated  April  1,  1898  Maturing  April  1.  1928 

Interest  payable  April  1  and  October  1  at  5  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $500,000  Outstanding  $224,000 

Per  mile  .    .        8,480 

Provisions  of      Of  the  $500,000  authorized,  $135,000  are  owned  by  the  Atchison,  Topeka  &  Santa  Fe  Rail- 
issue:  way  Company,  and  $224,000  are  outstanding  as  above. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  26.4  miles  of  line,  extending  from  Prescott 

&  Eastern  Junction  to  Meyer,  Ariz.;  also  on  lands,  buildings,  franchises,  incomes,  etc. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Santa  Fe, 
Prescott  &  Phoenix  Railroad  Company  under  the  terms  of  the  lease. 

Equity:  These  bonds  are  prior  in  lien  to  the  Atchison,  Topeka  &  Santa  Fe  Railway-California- Arizona 

Lines  First  &  Refunding  4i^s  of  1962,  a  sufficient  number  of  which  have  been  reserved  to  refund 
this  issue. 

Trustee:  Central  Trust  Company  of  New  York. 

The  Prescott  &  Eastern  Railroad  Company  was  chartered  under  the  laws  of  Arizona,  September 
14,  1897,  for  50  years.  Its  road  was  opened  for  traffic  June  15,  1899.  Its  property  was  leased  to 
the  Santa  Fe,  Prescott  &  Phoenix  Railway  Company  for  99  years  from  June  80,  1898,  but  in 
December,  1911,  it  was  merged  into  the  California,  Arizona  &  Santa  Fe  Railway  Company,  the  latter 
forming  an  integral  part  of  the  Atchison  System. 


1  30 


ATCHISON,  TOPEKA   &   SANTA  FE   RAILWAY 

California-Arizona  Lines 

First  and  Refunding  Mortgage  41  ^s 

Dated  March  1,  1912  Maturing  March  1,  1962 

Interest  payable  March  1  and  September  1  at  New  York  and  London. 

Coupon  bonds  of  $100,  $500  and  $1,000. 

Registered  bonds  of  $1,000  and  $10,000.    Coupon  and  registered  bonds  interchangeable. 

Sterling  bonds  of  £20,  £100  and  £200.     Franc  bonds  of  2,500  and  5,000  francs. 

All  registerable  as  to  principal. 


Authorized  $50,000,000 


Outstanding  $9,394,000 

£1,830,000 

Per  mile  .    .         $21,916 


Provisions  of      Of  the  $50,000,000  authorized,  $31,700,000  have  been  reserved  for  extensions,  construction 
issue:  of  terminals,  bridges,  etc.,  acquisition  of  stocks  and  bonds,  etc.,  under  restrictions,  and  to  re- 

fund underlying  bonds.    $9,394,000  and  £1,830,000  are  outstanding  as  above 

Security :  The  above  bonds  are  a  direct  obligation  of  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company, 

and  are  secured  by  a  direct  mortgage,  or  collateral  trust  lien,  on  834.66  miles  of  road.  They 
are  secured  by  a  first  mortgage  on  296.87  miles,  including  the  line  from  Cadiz,  Cal.,  to 
A  and  C  Junction,  Ariz.,  190  miles;  and,  in  effect,  by  a  first  mortgage  on  73.85  miles  of  road 
through  de])osit  with  the  trustee  of  underlying  securities  on  the  same.  They  are  further 
secured  by  a  second  mortgage  on  463.94  miles,  covered  by  the  first  liens  of  the  Southern  Pacific 
First  Consolidated  5s  of  1937,  the  Santa  Fe,  Prescott  &  Phoenix  First  5s  of  1942,  the  Prescott 
&  Eastern  First  5s  of  1928  and  the  California  Eastern  Railway  First  5s  of  1921. 

Redemption:  These  bonds  are  redeemable  as  a  whole  but  not  in  part  at  110  and  interest,  on  any  interest 
date,  upon  90  days'  notice,  at  the  option  of  the  California,  Arizona  &  Santa  Fe  Railway 
Com[)any,  a  joint  executor  of  the  mortgage  with  the  Atchison,  Topeka  &  Santa  Fe  Railway 
Company. 


Trustee : 


Guaranty  Trust  Company,  New  York. 


The  California,  Arizona  &  Santa  Fe  Railway  Company  wa.s  organized  in  December,  1911,  in 
the  interests  of  the  Atchison,  Topeka  &  Santa  Fe  Railway  Company,  wliich  owns  all  its  capital  stock 
($50,000,000)  except  directors'  shares. 

These  bonds  were  quoted  in  July,  1912,  on  a  4.50%  basis. 


I  31 


BALTIMORE  &  OHIO  RAILROAD  COMPANY 


BALTIMORE  &  OHIO  RAILROAD  COMPANY 


HISTORY 

The  Baltimore  &  Oliio  Railroiul  is  one  of  the  oldest  in  Anieriea;  in  fact  it  is  the  oldest  of  the 
larger  railroads  in  continnous  existence.  Its  report  for  1912  was  its  eighty-sixth  annnal  statement 
to  its  stockholders.  The  road  was  chartered  in  Maryland  on  February  28,  1827,  and  in  Virginia  on 
March  8,  1827.  The  construction  of  the  road  was  begun  on  July  4,  1828,  and  the  main  line  was 
opened  throughout  on  January  1,  1853. 

Its  construction  was  directly  instigated  by  the  completion  of  the  Erie  Canal,  and  was  assisted 
by  loans  from  the  City  of  Baltimore.  The  road  consisted  of  iron-])lated  wooden  rails  along  which 
tram-cars  ran  "  at  the  marvellous  speed  of  nine  miles  an  hour."  The  first  steam-drawn  train  travellefl 
at  the  rate  of  ten  miles  an  hour,  and  it  was  predicted  that  "  before  long  this  unprecedented  rate  of 
speed  will  be  raised  to  eighteen,  and  even  twenty  miles  an  hour,  and  the  journey  to  the  Ohio  will 
some  day  be  performed  within  twenty-four  hours."  Time  has  proved  that  this  was  a  most  conser- 
vative statement. 

The  modern  Baltimore  &  Ohio  Railroad  was  largely  the  creation  of  John  W.  Garrett,  who  was 
its  president  from  1858  until  his  death  in  1884.  He  was  succeeded  by  his  son,  Robert  Garrett,  who 
was  killed  soon  after.  In  1887  dividends  on  the  common  stock  were  passed,  and  from  that  time 
initil  the  actual  faihu-e  of  the  road  in  1896,  it  was  forced  into  destructive  rate  wars  which  swept  it 
into  bankruptcy. 

It  was  in  February,  1896,  that  the  company  became  insolvent.  Being  unable  to  meet  the  interest 
on  several  important  issues  of  its  bonds,  receivers  were  appointed  on  March  1.  At  that  time  the 
company  owned  in  fee  simple  513  miles  of  main  line  and  branches  and,  in  addition,  about  1,750 
miles  of  leased  and  proprietary  roads,  the  results  from  whose  operation  were  included  in  its  income 
account.  Besides  this  the  company  operated,  as  agent  for  their  owners,  three  small  railroads  in 
Virginia.,  and  controlled  the  oi)eration  of,  but  did  not  directly  operate,  the  Baltimore  &  Ohio  South- 
western Railway,  the  Cleveland  Terminal  &  Valley  Railroad,  the  Monongahela  River  Railroad,  the 
Pittsburgh  &  Western  Railway,  the  Sharpsville  Railroad,  the  Staten  Island  Railwa,^^  the  Staten 
Island  Rapid  Transit  Railway  and  the  West  Virginia  &  Pittsburgh  Railroad. 

The  receivershij)  covered  all  the  lines  operated  directly  by  the  Baltimore  &  Ohio  Railroad 
Company,  Jmt  not  those  operated  by  their  own  organizations.  Separate  receivers  were  appointed 
afterward  for  these.  The  Baltimore  &  Ohio  receivers  were  in  possession  for  more  than  three  years 
and  practically  renewed  the  road  and  its  equipment,  at  the  same  time  carrying  through  the  plan  of 
reorganization  without  foreclosure.    The  property  was  restored  to  the  company  on  July  1,  1899. 

In  the  reorganization  the  proprietary  and  leased  lines  were  practically  absorbed,  all  their  securi- 
ties and  del)ts  being  acquired  by  the  new  company  and  deposited  imder  mortgages.  The  Central 
Ohio  S\'stem  of  railroads,  including  the  Central  Ohio  Railroad,  the  Columbus  &  Cincinnati  Mid- 
land Railroad,  the  Newark,  Somerset  &  Straitsville  Railroad  and  the  Sandusky,  Mansfield  &  Newark 
Railroad,  was  acquired  by  the  reorganized  company.  Also,  the  securities  of  the  Baltimore  &  Ohio 
Southwestern  Railroad  Company,  a  reorganization  of  the  Baltimore  &  Ohio  Southwestern  Railway 
Company,  were  taken  over  and  deposited  under  its  Southwestern  Di\'ision  mortgage.  The  opera- 
tion of  the  Baltimore  &  Ohio  Southwestern  Railroad  was  not  assumed  until  July  1,  1900. 

Besides  this,  the  reorganized  company  purchased  the  capital  stocks  of  the  Monongahela  River 
Railroad  and  the  West  Virginia  &  Pittsburgh  Railroad  Companies,  assuming  their  direct  operation 

[  35  ] 


April  1,  1900,  and  September  1,  1899,  respectively.  Sold  under  foreclosure  of  its  second  mortgage 
on  October  9,  1901,  the  Pittsburgh  &  Western  Railroad  was  purchased  by  the  Baltimore  &  Ohio 
Railroad  Company,  and  reorganized  as  the  Pittsburgh  &  Western  Railway.  The  control  of  this 
road  carried  with  it  the  ownership  of  several  important  branches  and  the  control  of  the  Pittsburgh, 
Cleveland  &  Toledo  Railroad  and  the  Pittsburgh,  Painesville  &  Fairport  Railroad. 

During  the  year  1901  the  Baltimore  &  Ohio  Railroad  Company  acquired  the  control  of  the 
Cleveland,  Lorain  &  Wheeling  Railroad,  the  Ohio  River  Railroad,  the  Ohio  and  Little  Kanawha 
Railroad  and  the  West  Virginia  Short  Line  Railroad  Companies.  By  January  1,  1902,  they  had 
been  taken  over  for  operation,  and  on  February  1,  1902,  operation  was  assumed  of  the  Cleveland 
Terminal  &  Valley  Railroad  and  the  Pittsburgh  Junction  Railroad. 

On  June  30,  1912,  the  Baltimore  &  Ohio  Railroad  Company  owned  one-sLxth  of  the  capital  stock 
of  the  Richmond-Washington  Company,  which  controls  the  "Union  Line  "  between  Washington,  D.  C, 
and  Riclnnond,  Virginia.  It  also  owned  121,300  of  the  560,000  shares  of  first  preferred,  285,300 
of  the  840,000  shares  of  second  preferred,  and  200,050  of  the  1,400,000  shares  of  common  stock  of 
the  Reading  Company.  The  latter  controls  the  Philadelphia  &  Reading  Railway  and  the  Central 
Railroad  of  New  Jersey,  and  both  form  an  essential  part  of  the  Baltimore  &  Ohio's  through  line  to 
New  York. 

One  other  acquisition  will  eventually  prove  of  importance  to  the  Baltimore  &  Ohio  Railroad 
Company,  namely,  the  agreement  made  July  1,  1909,  whereby  the  above  company  has  the  option  to 
1916  to  acquire  the  controlling  stock  of  the  Cincinnati,  Hamilton  &  Dayton  Railway  Company. 
This  railroad  was  formed  in  1895  as  the  consolidation  of  the  old  Cincinnati,  Hamilton  &  Dayton, 
Cincinnati,  Dayton  &  Ironton,  and  the  Cincinnati,  Dayton  &  Chicago  Railroads.  It  controlled  the 
Pere  Marquette  System  by  lease  from  1903  to  1906,  and  was  itself  controlled  by  Erie  interests  from 
1904  to  1906.  It  held  a  majority  of  the  common  stock  of  the  Pere  Marquette  until  1910,  when  it 
passed  into  the  control  of  J.  P.  Morgan  &  Company.  The  Cincinnati,  Hamilton  &  Dayton  Railway 
still  has  a  joint  interest  with  the  Cleveland,  Cincinnati,  Chicago  &  St.  Louis  in  the  Dayton  &  Union 
Railway.  It  owns,  jointly  with  the  Southern  Railway  and  the  Alabama,  New  Orleans,  Texas  & 
Pacific  Junction  Railways,  Ltd.,  a  majority  of  the  stock  of  the  Southwestern  Construction  Com- 
pany, which,  in  turn,  controls  the  Cincinnati,  New  Orleans  &  Texas  Pacific  Railway. 

Under  the  terms  of  the  above-mentioned  agreement,  the  Baltimore  &  Ohio  Railroad  effected  a 
plan  for  the  adjustment  of  future  interest  charges,  and  the  payment  or  adjustment  of  the  floating 
debt  of  the  Cincinnati,  Hamilton  &  Dayton  Railway.  It  also  agreed  at  that  time  to  provide  ap- 
proximately $7,000,000  for  improvements  and  working  capital,  and  to  guarantee  the  latter's  first 
and  refunding  mortgage  4s  dated  July  1,  1909,  and  $11,557,000  4  per  cent  notes  maturing  Julj^  1, 
1913.  Also,  when  under  the  agreement  the  acquisition  of  the  latter's  stock  is  made  by  the  Baltimore 
&  Ohio  Railroad,  it  is  obliged  to  purchase  at  85,  or  guarantee,  $20,000,000  of  the  Cincinnati,  Ham- 
ilton &  Dayton  Railway's  General  Mortgage  bonds  due  July  1,  1939. 

A  word  might  be  said  about  the  dominant  influences  in  the  Baltimore  &  Ohio  Railroad  itself. 
On  January  1,  1912,  the  Pennsylvania  Railroad  and  subsidiary  lines  owned  $21,273,000  preferred 
and  $21,273,000  common  stock  of  the  Baltimore  &  Ohio  Railroad.  On  June  30,  1912,  the  Union 
Pacific  Railroad  Company  owned  $7,206,000  preferred  and  $32,334,000  cominon  stock  of  the  com- 
pany. Representatives  of  both  the  Pennsylvania  and  the  Union  Pacific  Railroads  are  to  be  found 
among  the  dozen  directors  who  manage  the  destinies  of  the  Baltimore  &  Ohio. 


PROPERTY 

At  tlie  close  of  the  company's  fiscal  year,  June  30,  1912,  the  Baltimore  &  Ohio  Railroad  operated 
4,455.06  miles  of  main  track.  Of  this  amount  73.76  miles  were  operated  under  trackage  rights.  The 
total  extra  main  track  of  the  system  included  1,242.40  miles  of  second  main  track,  167.36  miles  of 
third  main  track,  and  39.24  miles  of  fourth  main  track,  totaling  1,449  miles. 

'J'lie  principal  line  of  the  Baltimore  &  Ohio  Railroad  extends  from  Philadelphia,  through  Bal- 

[36] 


timore,  westward  through  Maryland,  forking  at  Cumberhmd  into  two  main  branches;  one  extending 
to  Pittsburgh,  Lake  Erie,  and  Chicago,  the  other  througli  Cincinnati  to  Louisville  and  St.  Louis. 
Entrance  to  New  York  City  is  made  over  the  Philadelphia  &  Reading  lines.  The  Baltimore  &  Ohio 
does  interstate  business  in  the  States  of  Pennsylvania,  Maryland,  Virginia,  West  Virginia,  Ohio, 
Indiana  and  Illinois.  The  population  of  these  states  in  1890  was  18,412,159;  in  1900,  21,798,700; 
and  in  1910,  25,349,776. 

CAPITALIZATION 

Based  on  the  annual  report  of  the  Baltimore  &  Ohio  Railroad  Company  for  the  fiscal  year  end- 
ing June  30,  1912,  the  following  capitalization  figures  of  the  system  appear: 

Common  stock $152,246,988 

Preferred  stock 59,989,247 

Total  capital  stock $212,236,235 

Funded  debt 343,882,779 

Gross  capitalization $556,119,114 

Securities  owned      60,304,809 

Net  capitalization $495,814,205 

Net  capital  per  mile  operated $111,293 

Average  miles  operated 4,455.06 

Net  income  to  net  capital ^-5% 

Fixed  charges  to  net  income 56.9% 

Margin  of  safety 43.1% 

The  actual  net  capital  per  mile  of  road  operated,  $111,293,  as  above,  is  not  a  large  figure  as 
compared  with  other  roads  similarly  situated  and  meeting  the  same  transportation  }iroblems. 

Below  is  the  average  net  capitalization  and  the  average  net  income  to  net  capital  for  the  decade 
ending  June  30,  1912,  of  the  Baltimore  &  Ohio  Railroad,  and  the  decade  ending  December  31,  1911, 
of  the  New  York  Central  and  the  Pennsylvania  Railroad  Companies. 

Baltimore  &  Ohio $102,550  6.7% 

New  York  Central 125,652  7.6 

Pennsylvania 125,063        11.5 

As  will  be  seen  by  the  foregoing,  the  New  York  Central,  with  an  average  net  capitalization  of 
$125,600  per  mile,  is  able  to  show  a  net  income  of  7.6%  on  it  for  the  decade.  This  is  obviously  a  better 
showing  than  that  of  the  Baltimore  &  Ohio,  which  earned  net  on  its  average  net  capital  only  6.7%; 
but  it  should  be  said  of  the  New  York  Central  that  its  showing  is  bettered  to  no  small  degree  by  its 
rich  subsidiaries  which  can  be  depended  upon  at  any  time  to  help  materially  in  meeting  its  dividend 
payments,  thereby  swelling  the  total  net  income  available  for  capital  requirements. 

As  will  be  seen  above,  the  fixed  charges  of  the  road  consume  56.9%  of  the  total  net  income,  leav- 
ing a  margin  of  safety  for  the  interest  on  its  bond  issues  of  43.1%.  The  average  margin  of  safety  for 
ten  years  past  is  relatively  better,  being  51%,  as  compared  with  the  average  margin  of  safety  for  the 
same  period  of  32%  for  New  York  Central  bond  issues,  and  55%  for  Pennsylvania  securities. 


[  37  ] 


CHARACTER   OF   TRAFFIC 

To  a  greater  extent  than  most  of  the  large  Eastern  roads,  the  Baltimore  &  Ohio  Railroad  is 
primarily  a  freight  road,  and  like  most  large  Eastern  lines,  except  possibly  the  New  York  Central, 
the  larger  part  of  its  freight  earnings  are  from  coal  traffic.  To  show  the  exact  proportion  of  coal 
traffic  to  total  freight  traffic  and  of  freight  to  the  entire  traffic  of  the  road,  the  following  table  is  ap- 
pended for  the  years  ending  June  30,  1907  to  1912  inclusive: 

Ratio  of  all  Traffic 

Coal  (soft) 

Other  commodities 


1912 

1911 

1910 

1909 

1908 

1907 

46% 

44% 

42% 

43% 

44% 

39%o 

54 

56 

58 

57 

56 

61 

100% 

100% 

100% 

78% 

100% 
76% 

100% 

76% 

100%o 

78% 

77% 

79% 

16 

17 

16 

18 

18 

17 

6 

6 

6 

6 

6 

4 

Total  freight 

Passenger 

Other      

Total  traffic       100%o         100%         100%         100%         100%,         100% 

As  will  be  seen  by  the  above,  over  75%  of  the  traffic  of  the  railroad  is  freight,  and  of  this 
freight,  over  43%,  on  an  average,  is  represented  by  bituminous  coal  traffic.  In  point  of  fact,  fully 
two  thirds  of  the  entire  freight  carried  consists  of  mine  products,  largely  coal  and  coke.  The  fol- 
lowing table  is  given  showing  the  number  of  tons  of  commodities  carried  during  the  fiscal  years  1907 
to  1911  inclusive: 

Commodity  Statistics 

1912 
Products  of  Tons 

Agriculture 3,203=' 

Animals      935 

Mines 43,115 

Forests 2,627 

Manufactures     ....  10,165 

Miscellaneous     ....  4,659 

Total 64,704         60,547  62,797         48,223  49,487  58,449 

The  above  figures  show  that,  of  the  total  freight  tonnage  for  the  period  in  question,  only  about 
5%,  on  an  average,  represents  products  of  agriculture,  5%  products  of  forests,  16%  products  of 
manufactures,  and  8%  miscellaneous  commodities.  This  leaves  approximately  66%,  which  is  ac- 
counted for  by  the  products  of  mines,  a  fact  which  proves  in  itself  the  dependence  of  the  railroad  upon 
its  coal  traffic.  Therefore,  with  such  a  preponderance  of  low-grade  freight,  the  earning  capacity  of 
the  road  is  dependent  largely  upon  the  maintenance  of  its  coal  and  commodity  freight  rates. 

Compiled  from  the  official  reports  of  the  railroad  for  the  years  1907  to  1912  inclusive,  the  follow- 
ing earnings  statistics  are  submitted: 


1911 

Tons 

1910 
Tons 

1909 
Tons 

1908 

Tons 

1907 
Tons 

3,299* 

3,243* 

2,796* 

3,029* 

3,095^ 

966 

875 

842 

847 

824 

39,536 

40,806 

31,297 

32,115 

37,403 

2,765 

3,092 

2,487 

2,599 

3,088 

9,651 

10,626 

7,397 

7,301 

9,927 

4,330 

4,157 

3,404 

3,596 

4,112 

1  38  ] 


fight  Earnings 

1911 

1910 

1909 

1908 

1907 

$.8^298 

$.8215 

$.7977 

$.8053 

$.7869 

.0041 

.0041 

.0041 

.0041 

.0040 

1.117 

1.1053 

1.1171 

1.1252 

1.1057 

.0057 

.0057 

.0058 

.0057 

.0057 

15,253 

15,652 

13,456 

13,946 

16,131 

191« 

Average  coal  earnings  per 

ton $.8377 

Average  coal  earnings  per 

ton  per  mile .0041 

Average    freight    earnings 

per  ton 1.120 

Average    freight    earnings 

per  ton  per  mile  .  .  .  .0058 
Freight  earnings  per  mile 

of  road 16,266 

As  will  be  seen  by  the  foregoing,  coal  and  freight  earnings  per  ton  have  been  steady,  and  have 
tended  generally  to  increase.  The  average  coal  earnings  per  ton  increased  from  $.7869  in  1907  to 
$.8377  during  the  fiscal  year  ending  June  30,  1912,  while  the  average  coal  earnings  per  ton  per  mile 
remained  practically  stationary.  The  freight  rate  per  ton  per  mile  averaged  $.0058  for  the  period, 
and  this  compares  very  favorably  with  the  corresjjonding  figures  of  the  Pennsylvania  Railroad,  the 
Chesapeake  &  Ohio  Railwaj',  and  the  Norfolk  &  Western  Railway  —  roads  similarly  situated  and  de- 
pending upon  the  same  sort  of  traffic  as  the  Baltimore  &  Ohio.  The  above-mentioned  roads  report  a 
freight  rate  per  ton  per  mile  of  $.0059,  $.0043,  and  $.0047  respectively. 

The  passenger  business  of  the  Baltimore  &  Ohio  Railroad  represents  about  17%  of  the  total 
traffic,  as  is  shown  in  a  table  above.  While  the  actual  number  of  passengers  carried  during  the  years 
1907  to  1912  inclusive  increased  steadily,  passenger  density  tended  to  decline  and  the  average  earn- 
ings per  passenger  per  mile  remained  practically  stationary.  In  the  case  of  the  latter,  the  1912 
figures  show  a  slight  improvement  over  those  of  1908,  1909,  1910  and  1911,  but  nowhere  near  equal 
the  average  earnings  per  passenger  per  mile  for  the  decade  prior  to  1907.  Following  are  some  of  the 
more  salient  passenger  statistics  of  the  Baltimore  &  Ohio  for  the  fiscal  years  ending  June  30,  1907 
to  1912  inclusive: 

Passenger  Statistics 


1912 

1911 

1910 

1909 

1908 

1907 

Number  of  pass- 

engers carried . 

22,178* 

21,969* 

21,107* 

18,614* 

18,775* 

17,468' 

Passenger      den- 

sity   

171,977 

179,506 

172,165 

172,286 

182,005 

180,574 

Average  earnings 

per  passenger . 

$.6653 

$.6923 

$.6863 

$.6968 

$.7316 

$.8099 

Average  earnings 

per    passenger 

per  mile  .    .    . 

.0193 

.0191 

.0189 

.0188 

.0189 

.0195 

Passenger    earn- 

ings per  mile  . 

3,312 

3,430 

3,266 
EARNINGS 

3,239 

3,440 

3,531 

Based  on  the  annual  reports  of  the  company,  the  following  table  is  presented  showing  the  actual 
gross  and  net  earnings,  also  earnings  figured  on  the  basis  of  miles  operated,  for  the  years  1907  to  1912 
inclusive : 

*  000  omitted. 

[  39  ] 


operated 

earnings 

1907     . 

.    4006 

$82,243,921 

1908     . 

.   3992 

73,608,781 

1909     . 

.   4004 

71,043,519 

1910     . 

.   4434 

88,901,252 

1911     . 

.   4434 

88,145,003 

1912     . 

.   4455 

92,594,323 

Per  mile 

Net 

earnings 

^20,530 

$27,363,830 

18,439 

19,457,901 

17,743 

23,491,542 

20,049 

27,567,451 

19,879 

25,378,936 

20,784 

27,884,785 

Per  mile 

$6,830 
4,875 
5,867 
6,217 
5,724 
6,259 

In  the  above  table  the  1907,  1908  and  1909  figures  do  not  inchide  the  earnings  of  controlled  and 
affiliated  lines.  In  1910  these  lines,  which  had  been  independently  operated,  were  merged  directly 
into  the  Baltimore  &  Ohio  System,  and  their  operations  were  included  in  the  reports  of  the  company. 
This  accounts  for  the  increase  in  miles  operated  and  the  marked  advance  in  earnings  during  that  year. 
Because  of  this  merger,  the  1910,  1911  and  1912  figures  represent  the  earnings  of  the  entire  system 
except  those  of  the  Staten  Island  Railway,  the  Staten  Island  Rapid  Transit  Railway,  and  the  Balti- 
more &  Ohio  Chicago  Terminal  Railroad  Companies. 

As  will  be  seen  by  the  above  comparative  figures,  in  the  year  1911  the  gross  earnings  per  mile 
decreased  somewhat  as  compared  with  1910,  recovering  sharply,  however,  in  1912.  While  tlie  road 
was  able  to  report  substantial  gross  earnings  in  1911,  its  operating  costs  tended  to  advance,  resulting 
in  net  earnings  per  mile  lower  than  any  reported  since  1908.  The  splendid  gain  in  gross  in  1912 
was  saved  to  a  large  degree  for  net,  which  in  actual  dollars  were  the  largest  ever  reported. 

EXPENSES 

To  get  a  clear  idea  of  the  company's  operating  expenses,  both  for  maintenance  and  conducting 
transportation,  the  following  table  has  been  compiled  from  the  annual  reports  of  the  Baltimore  & 
Ohio  Railroad  Company  for  the  fiscal  years  ending  June  30,  1907  to  1912  inclusive,  showing  the 
actual  anaounts  spent,  also  the  amounts  based  on  the  average  miles  operated,  and  the  ratios  of  each 
to  total  expenses  and  to  gross  earnings: 

Operating  Expenses 

1912  1911  1910         1909  1908  1907 

Maintenance  of  way     .  $11,365,454  $10,279,615  $11,661,409  $9,017,396  $10,892,061  $10,944,597 

Per  mile      2,551  2,318  2,630  2,252  2,728  2,632 

Maintenance  of  equip.  16,651,534  15,881,620  16,373,775  10,985,730  12,584,072  12,993,722 

Per  mile      3,738  3,582  3,693  2,744  3,152  3,357 

Conducting  transp.,  etc.  36,692,549  36,604,831  33,298,614  27,548,850  30,674,746  30,941,770 

Per  mile      8,236  8,255  7,509  6,880  7,684  7,711 

Total  expense     ....  64,709,537  62,766,067  61,333.800  47,551,976  54,150,879  54,880,090 

Per  mile      14,525  14,155  13,832  11,876  13,564  13,700 

%  maintenance  way  to 

expense   ......  17.5%  16.4%  10.0%  19.0%  20.1%  19.2% 

%  maintenance  equi]). 

to  expense 25.7  25.3  26.7  23.1  23.2  24.5 

%  conducting  transp.  to 

expense 57.8  58.3  54.3  57.9  56.7  56.2 

%  expense  to  gross  earn- 
ings        69.8  71.2  69.0  66.9  73.5  66.7 

%  conducting  tran.sp.  to 

gross  earnings     .    .    .  39.6  41.5  37.4  38.7  41.7  37.5 

The  first  things  to  consider  in  the  foregoing  figures  are  the  charges  to  maintenance  for  the  period 
in  ([uestion.    In  1907,  the  largest  year  in  the  company's  history  up  to  that  time,  maintenance  charges 

[40] 


were  extremely  high,  Iieing  far  above  tliose  of  1906,  which  were  at  that  time  greater  than  they  had 
ever  been  before.  The  business  depression  which  followed  the  panic  of  1907  had  its  natural  effect 
upon  the  earnings  of  the  company,  causing  a  marked  decrease.  The  Compauj',  however,  did  not 
scale  down  mamtenance  and  operating  costs  in  proportion  to  the  reduction  in  gross  income,  and  we 
find  maintenance  charges  for  that  year  very  nearly  equivalent  to  those  of  the  high  figures  of  1907. 

In  1909  drastic  cuts  appear  in  the  maintenance  charges.  This  fact  has  been  explained  as  due 
to  the  desire  of  the  road's  managers  to  make  a  reasonable  dividend  showing.  The  effect  of  that 
year's  under-maintenance  was  more  than  offset  by  the  generous  charges  to  upkeep  which  were 
recorded  in  1910.  During  the  fiscal  year  of  1911  a  slight  reduction  was  made  necessary  by  the  falling 
off  in  gross  earnings  due  to  the  generally  unsettled  business  conditions  which  so  affected  roads  of 
this  class.     In  1912,  maintenance  charges  equalled  those  of  1910. 

Turning  from  maintenance  to  charges  for  conducting  transportation,  the  tendency  for  this  item 
to  increase  during  the  six  years  in  question  is  very  noticeable.  In  fact,  operating  costs  have  in- 
creased steadily  since  1902.  Important  factors  contributing  to  this  increase  in  operating  expenses  are 
found  in  those  items  of  expense  directly  connected  with  the  maintenance  and  operation  of  locomotives. 
Including  locomotive  maintenance,  wages  of  enginemen,  engine  house  expenses,  as  well  as  fuel,  water 
and  other  supplies  for  locomotives,  it  cost  $11,816,860  to  run  the  company's  locomotives  57,208,959 
miles  in  1902;  while  during  the  fiscal  year  of  1912  locomotives  ran  61,119,637  miles  at  the  cost  of 
$20,292,169,  or  $.332  per  mile  compared  with  $.207  per  mile  in  1902. 

The  increasmg  cost  of  conducting  transportation  is  still  more  strongly  shown  in  the  ratios 
presented  above.  While  the  ratio  of  maintenance  of  way  and  of  equipment  to  total  expense  re- 
mains practically  stationary,  the  ratio  of  the  cost  of  actual  operation  to  the  total  amount  spent 
has  generally  increased.  The  ratio  of  exi)ense  to  gross  earnings,  which  increased  from  66.7%  for  the 
year  1907  to  69.88%  in  1912  can  be  almost  entirely  explained  by  this  item.  But  a  still  more  significant 
figure  is  that  of  the  actual  ratio  between  the  cost  of  conducting  transportation  and  gross  earnings. 
As  will  be  seen  by  the  above  figures,  the  ratio  of  37.5%  in  1907  increased  to  39.6%  in  1912;  that  is, 
for  every  hundred  dollars  earned  it  cost  $37.50  m  1907  merely  to  operate,  and  $39.60  in  1912. 

That  this  has  been  a  disturbing  feature  in  the  income  account  of  the  company  has  been  evident 
for  a  long  time,  and  it  is  significant  to  note  the  efforts  on  the  part  of  the  management  during  the 
year  1912  so  to  increase  the  operating  efficiency  of  the  road  as  to  decrease  the  costs  of  conducting 
transportation. 

The  average  train  load  for  the  year  1911  was  441  tons.  This  was  increased  during  the  year  ending 
June  30,  1912,  to  554  tons,  an  increase  of  113  tons  or  26%,  a  truly  remarkable  gain  in  operating 
efficiency.  Correspondingly,  revenue  per  train  mile  increased  from  $2.05  in  1911  to  $2.39  in  1912. 
Net  profits  per  train  mile  increased  from  $.591  to  $.719. 

IMPROVEMENTS 

Since  its  reorganization  in  1899  the  Baltimore  &  Ohio  Railroad  Company  has  systematically 
set  aside  from  its  surplus  earnings  very  large  sums  for  improvements.  $26,901,238  has  been  ex- 
pended in  this  way.  This  amount  is  insignificant,  of  course,  in  comparison  with  amounts  spent  by 
the  Pennsylvania  kailroad,  the  New  York  Central,  or  even  the  Delaware,  Lackawanna  &  Western, 
but  it  must  be  remembered  that  the  above  companies'  earnings  are  proportionately  greater. 

In  addition  to  the  above  amount  spent  from  income,  the  Baltimore  &  Ohio  has  expended  enor- 
mous amounts  upon  improvements  and  chiirged  them  to  capital.  Additions  and  betterments  to  road 
and  equipment  since  June  30,  1907,  which  have  been  charged  to  capital,  amounted  to  $71,882,189, 
as  per  balance  sheet  of  June  30,  1912. 

Year  Road  Equipment  General  Total 

1910   $11,033,358      $10,004,408      $29,747     $21,067,513 

1911   18,771,942       14,568,327        1,658      33,341,927 

1912   11,969,912       5,502,837  17,472,749 

$71,882,189 

[41  ] 


Within  the  past  few  years  the  road  has  been  practically  made  over.  New  bnllasting,  double 
tracking,  the  installation  of  automatic  block  signals,  the  purchase  of  new  equipment  —  both  loco- 
motives witli  heavier  tractive  power  and  steel  cars  with  greater  carrying  capacity  —  and  the  build- 
ing of  bridges  to  care  for  the  increasingly  heavy  traflSc  of  the  road  have  meant  the  expenditure  of 
many  millions  of  dollars.  The  road  has  deliberately  burdened  itself  with  charges  upon  this  outlay 
in  order  to  prepare  itself  to  meet  more  efficiently  the  requirements  of  the  future. 

In  1910  the  company  issued  $50,000,000  three-year  gold  secured  notes,  $10,000,000  of  which 
were  to  refund  maturing  notes,  and  the  balance  to  be  spent  in  additions  and  betterments  of  the 
sort  mentioned  above.  Already  a  large  portion  of  this  amount  has  been  expended.  During  the  fiscal 
year  of  1911  $28,600,000  was  used  in  this  way,  $14,000,000  in  additions  to  property  and  $14,600,000 
for  equipment.  In  February,  1912,  the  company  issued  $10,000,000  more  notes  in  the  form  of  equip- 
ment trust  certificates.  The  proceeds  were  to  reimburse  the  company's  treasury,  in  part,  for  money 
expended  from  earnings  on  equipment  and  improvements  during  the  two  preceding  years. 

In  short,  the  company  is  endeavoring  in  every  way  to  provide  necessary  facilities  to  meet  the 
demands  of  general  business  and  particularly  of  the  increasing  industrial  developments  along  its  lines. 
These  outlays  of  capital  prove  conclusively  the  belief  of  the  road's  managers  in  the  possibility  of  in- 
creasing its  earning  power. 

DIVIDENDS 

The  Baltimore  &  Ohio  Railroad  Company  has  paid  the  following  dividends  since  its  reorgani- 
zation in  1899: 

Year  Rate 

Preferred        Common 

1900 4%  2% 

1901-4 4  4 

1905 4  41/^ 

1906 4  5H 

1907-12 4  6 

Any  fear  as  to  the  ability  of  the  company  to  maintain  the  present  dividend  rate  was  dispelled 
by  the  report  of  its  earnings  for  the  fiscal  year  of  1912.  Gross  earnings  were  well  over  $92,000,000,  — 
a  new  high  record.  Approximately,  the  surplus  available  for  dividends  on  the  $252,246,988  com- 
mon stock  outstanding  was  equal  to  7.5%.  This  compares  with  6.8%  earned  in  1911  and  9.1%  m 
1910. 

STATISTICS 

On  the  following  page  are  given  capitalization,  earnings  and  traffic  statistics  of  the  Baltimore  & 
Ohio  Railroad,  based  on  the  average  miles  operated,  for  the  year  1900  and  for  the  years  1905  to 
1912  inclusive: 


[  42  J 


BALTIMORE   &   OHIO   RAILROAD 


Fiscal 

Preferred 

Common 

Funded 

Rentals 

Gross             Owned  by 

Net 

Average 

Extra 

year 

stock 

stock 

debt 

@5% 

capital 

company 

capital 

miles 
operatec 

main 
track 

1900 

$18,555 

$14,067 

$62,030 

Norn. 

$94,562 

$4,790 

$89,887 

3,199 

698 

1905 

14,900 

30,867 

61,005 

106,772 

10,817 

95,995 

4,026 

1,138 

1906 

lt,889 

33,444 

64,026 

112,359 

12,048 

99,711 

4,030 

1,182 

1907 

14,977 

37,987 

64,999 

117,963 

14,002 

103,961 

4,006 

1,231 

1908 

15,030 

38,120 

66,794 

119,944 

14,130 

105,814 

3,992 

1,266 

1909 

14,985 

38,006 

67,000 

119,991 

10,581 

109,410 

4,004 

1,303 

1910 

13,528 

34,314 

72,464 

120,306 

13,411 

105.430 

4,434 

1,318 

1911 

13,529 

34,336 

74,900 

122,769 

13,462 

107,737 

4,434 

1,392 

1912 

12,465 

34,174 

77,190 

124,829 

13,536 

111,293 

4,455 

1,449 

Fiscal 

Gross 

Maintenance 

Transportation 

Net 

Other 

Total 

Fixed 

Surplus 

year 

operating 

and  general 

operating 

income 

net 

charges 

ivailable 

revenue 

Way 
$1,492 

Equipment 
$1,598 

expense 

- 

revenue 

$313 

$4,862 

$2,686 

for  dividends 

1900 

$13,236 

$5,597 

$4,549 

$2,176 

1905 

16,813 

1,950 

2,717 

6,438 

5,707 

740 

6,447 

2,930 

3,517 

1906 

19,204 

2,315 

3,105 

6,866 

6,917 

860 

7,777 

3,027 

4,750 

1907 

20,530 

2,632 

3,357 

7,711 

6,830 

1,007 

7,837 

3,202 

4,635 

1908 

18,439 

2,728 

3,152 

7,684 

4,875 

1,090 

5,965 

3,354 

2,611 

1909 

17,733 

2,252 

2,744 

6,880 

5,867 

1,035 

6,902 

3,650 

3,252 

1910 

20,049 

2,630 

3,693 

7,509 

6,217 

951 

7,168 

3,505 

3,664 

1911 

19,879 

2,318 

3,582 

8,255 

5,724 

1,104 

6,828 

3,936 

2,892 

1912 

20,784 

2,551 

3,738 

8,236 

6,259 

986 

7,245 

4,125 

3,120 

Fiscal 

Divi- 

Other        Surph 

s      Operating           Total 

Conducting 

Fixed 

Gross 

Net 

Perci 

nt  earned 

year 

dends      c 

harges 

expenses          mainten- 

transportation 

charges 

earnings 

income 

to  income 

to  gross      ance  to  gross 

to  gross 

to  gross 

to  gross 

to  net 

earnings         earnings 

earnings 

earnings 

capital 

capital     Preferred  Common 

1900 

$1,274 

$802           $94 

65.07%          23.2% 

41.9%, 

20.2% 

14.0% 

5.4% 

10.8%,        9.1% 

1905 

1,985 

740           792 

66.05 

27.8 

38.3 

17.4 

15.8 

6.6 

23.6 

7.5 

1906 

2,295 

1,012        1,178 

63.98 

28.0 

36.0 

17.4 

17.0 

7.7 

31.9 

12.4 

1907 

2,878 

1,027           736 

66.73 

29.2 

37.5 

15.6 

16.7 

7.5 

29.1 

9.9 

1908 

2,888 

69           343 

73.57 

31.9 

41.7 

18.2 

15.4 

5.6 

16.8 

5.1 

1909 

2,880 

136           236 

66.93 

28.2 

38.7 

21.3 

14.8 

6.4 

21.7 

6.9 

1910 

2,587 

94           983 

69.00 

31.6 

37.4 

17.4 

16.6 

6.7 

20.4 

9.1 

1911 

2,588 

304 

71.21 

29.7 

41.5 

19.7 

16.2 

6.3 

21.3 

6.8 

1912 

2,576 

544 

09.88 

30.3 

39.6 

19.8 

16.6 

6.5 

25.0 

7.5 

Fiscal 

Train 

Maintena 

nee           Conducting       Train 

Rate  i)er  mile 

Freight 

Train       Freight 

P.issenger. 

year 

mile 

per  revenue          transportation      mile 

density 

load 

to  all 

freight 

earnings 

train  mile              per 

revenue    earnings        Per 

Per 

revenue 

raffic 

and 

(gross) 

train  mile         (net) 

passenger 

ton 

tons 

company 

Way      Equipment 

cars 

1900 

$1.42 

$.155          $.210            $.730           $.319 

$.0184 

$.0046 

2,124,274 

365 

75% 

65,026 

1905 

1.89 

216 

300 

.713 

631 

.0190 

.0056 

2,218,960 

399 

75 

75,782 

1906 

1.98 

238 

319 

.706 

707 

.0201 

.0056 

2,659,949 

420 

78 

90,354 

1907 

2.05 

263 

335 

.771 

683 

.0195 

.0057 

2,828,065 

433 

79 

84,676 

1908 

1.92 

284 

328 

.801 

508 

.0189 

.0056 

2,451,747 

408 

76 

87,935 

1909 

1.95 

250 

304 

.762 

634 

.0189 

.0058 

2,315,649 

425 

76 

85,964 

1910 

2.05 

269 

377 

.768 

636 

.0190 

.0057 

2,711,666 

442 

78 

85,953 

1911 

2.05 

239 

369 

.852 

591 

.0191 

.0057 

2,639,654 

441 

77 

90,703 

1912 

2.39 

293 

430 

.948 

719 

.0192 

.0058 

2,803,648 

554 

78 

89,379 

♦  Deficit. 

[43  ] 

BOND    DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Baltimore  &  Ohio 

Railroad    System,    together   with   the   bases  upon   which   they 

have  sold  during  the  decade  ending  December  .'51,  191'2: 


BALTIMORE  &  OHIO   RAILROAD 


Prior  Lien  Gold  3Vjs 


Dated  July  1,  1898  Maturing  July  1,  1925 

Interest  payable  on  coupon  bonds  January  1  and  July  1.     Registered  bonds  January  1, 

April  1,  July  1  and  October  1,  at  the  company's  office,  New  York. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000  and  multiples  thereof. 


Authorized  $75,000,000 


Outstanding  $74,852,150 
Per  mile  .    .  72,780 


Provisions  of 
issue : 

Security : 


Equity: 


On  June  30,  1912,  $74,852,150  of  the  $75,000,000  authorized  were  outstanding  in  the  hands 
of  the  public,  as  above,  and  $147,850  were  held  in  the  treasury. 

The  above  bonds  are  secured  by  (1)  a  direct  first  mortgage  on  91.84  miles  of  road;  (2)  a  direct 
second  mortgage  on  376.31  miles  of  road;  (3)  a  first  collateral  trust  mortgage  on  560.31  miles 
of  road  through  deposit  of  $24,791,000  and  £1,352,000  bonds  and  $17,827,797  stocks;  (4)  the 
right,  title  and  interest  of  the  company  in  certain  claims  against  the  Washington  County 
Railroad,  Berkley  Springs  &  Potomac  Railroad,  and  Pittsburgh  &  Connellsville  Railroad;  (5) 
a  first  lien  on  equipment  valued  on  June  30,  1907,  at  about  $48,000,000. 

The  above  bonds  are  prior  in  lien  to  the  $165,000,000  Baltimore  &  Ohio  First  Mortgage  4% 
bonds  due  July  1,  1948,  a  sufficient  number  of  which  have  been  reserved  to  retire  this  issue  at 
maturity. 


Trustee: 


Bankers  Trust  Company,  New  York. 

The.se  bonds  sold  in  1902  on  a  3.65  to  4.00  basis 


1903 

3.70 

4.10 

1904 

3.72 

4.00 

1905 

3.65 

3.90 

1906 

3.67 

4.10 

1907 

4.00 

4.70 

1908 

3.85 

4.35 

1909 

3.90 

4.25 

1910 

4.125 

4.50 

1911 

4.15 

4.35 

1912 

4.125 

4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Vermont,  Massa- 
chusetts and  Rhode  Island. 


[   4G 


BALTIMORE   &   OHIO    RAILROAD 


First  Mortgage  Gold  4s 


Dated  July  1,  1898  Maturing  July  1,  1948 

Interest  payable  on  coupon  bonds  April  1  and  October  I  at  the  company's  office.  New  York. 
Registered  bonds  January  1,  April  1,  July  1  and  October  1,  by  check. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000  and  multiples  thereof. 


Authorized  $165,000,000 


Outstanding  $74,978,750 
Per  mile  .    .  46,810 


Provisions  of 
issue: 


Security : 


Redemption : 


Of  the  $165,000,000  authorized,  $78,000,000  have  been  issued,  of  which  $3,021,250  are  held 
in  the  treasury  and  $74,978,750  are  outstanding  as  above.  The  $88,000,000  unissued  bonds 
are  held  to  retire  $75,000,000  Prior  Lien  3j^s  of  1925  and  for  betterments  and  extensions  at  not 
exceeding  $1,000,000  a  year. 

The  above  bonds  are  secured  by  (1)  a  direct  first  mortgage  on  56.26  miles  of  road;  (2)  a  first 
collateral  trust  mortgage  on  517.03  miles  of  road  through  deposit  of  $12,000,000  and  £2,600,000 
bonds  and  $19,579,000  stocks;  (3)  a  first  collateral  trust  mortgage  on  valuable  terminal  prop- 
erty, being  secured  by  pledge  of  the  entire  $8,487,200  Baltimore  &  Ohio  Railroad  Terminal 
4i^s  of  1934;  (4)  a  direct  second  mortgage  on  91.84  miles;  (5)  a  direct  third  mortgage  on 
376.31  miles  of  road,  and  (6)  a  second  collateral  trust  mortgage  on  560.31  miles. 

These  bonds  are  redeemable  at  105  and  interest  on  any  interest  date  after  July  1,  1923,  on 
three  months'  notice. 


Trustees : 


United  States  Trust  Company  and  John  A.  Stewart,  New  York. 
These  bonds  sold  in  1902  on  a  3.77    to  4.02  basis 


1903 

3.77 

4.03 

1904 

3.80 

3.99 

1905 

3.68 

3.90 

1906 

3.75 

3.99 

1907 

3.875 

4.62 

1908 

3.90 

4.15 

1909 

3.90 

4.125 

1910 

3.99 

4.125 

1911 

4.02 

4.17 

1912 

4.05 

4.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  Connecticut. 


[  47 


BALTIMORE  &   OHIO   RAILROAD 

Pittsburgh  Junction  &  Middle  Division  First  Mortgage  Gold  3V2S 

Dated  November  1,  1898  Maturing  November  1,  192.5 

Interest  payable  on  coupon  bonds  May  1  and  November  1  at  the  company's  ofBce,  New  York. 

Registered  bonds  February  1,  May  1,  August  1  and  November  1,  by  check. 

Coupon  bonds  of  $500  and  $1000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000  and  nuiltiples  thereof. 

Authorized  $20,000,000  Outstanding  $0,170,230 

Per  mile  .    .  16,150 

Trovisioiis  of      Of  the  $20,000,000  bonds  authorized,  $14,8,'5G,8.'?0  have  been  issued,  as  follows:   $50  are  held 
issue:  in  the  treasury,  $8,060,550  are  pledged  as  part  collateral  for  the  Baltimore  &  Ohio-Pittsburgh, 

Lake  Erie  &  West  Virginia  Refunding  4s  of  1941,  and  $6,176,230  are  outstanding,  as  above. 
No  more  of  these  bonds  are  to  be  issued  unless  they  are  pledged  under  the  Pittsburgh,  Lake 
Erie  &  West  Virginia  Refunding  Mortgage. 

Security:  The  above  bonds  are  secured  by  a  collateral  trust  mortgage  on  382.34  miles  of  road,  terminal 

property,  etc.,  through  deposit  of  securities  of  subsidiary  companies,  totalling  $6,244,000  bonds 
and  $12,357,959  stocks. 

Equity:  Provision  is  made  in  the  mortgage  securing  the  Baltimore  &  Ohio-Pittsburgh,  Lake  Erie  & 

W'est  Virginia  System  Refunding  Mortgage  4s  due  November  1,  1941,  for  the  retirement  of 
these  bonds  and  for  the  inclusion  of  the  proi)erties  and  securities  covered  by  these  bonds  in 
the  security  of  the  refunding  mortgage. 

The.se  bonds  sold  in  1902  on  a  3.90    to  4.25  basis 


1903 

4.125 

4.40 

1904 

4.00 

4.40 

1905 

4.00 

4.20 

1906 

4.10 

4.35 

1907 

4.30 

5.20 

1908 

4.35 

5.27 

1909 

4.40 

4.55 

1910 

4.40 

4.70 

1911 

4.60 

4.70 

1912 

4..50 

4.85 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


[4S 


BALTIMORE   &   OHIO   RAILROAD 

Southwestern  Division  First  Mortgage  Gold  3V2S 

Dated  January  1,  1899  Maturing  July  1,  1925 

Interest  payable  at  tlie  company's  office  on  coupon  bonds  January  1  and  July  1. 

Registered  bonds  January  1,  April  1,  July  1  and  October  1. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000  and  nuiltiplcs  thereof. 

Authorized  $45,000,000  Outstanding  $44,992,530 

Per  mile  .    .  48,775 

Security :  The  above  bonds  are  secured  by  a  deposit  with  the  trustee  of  the  entire  issue,  $45,000,000,  of 

the  Baltimore  &  Ohio  Southwestern  Railroad  First  33^s  of  1925,  and  also  the  entire  capital 
stock  of  that  company,  $4,000,000.  The  First  3j^s  of  1925  are  secured  by  a  first  mortgage 
on  the  company's  entire  mileage  totalling  922.44  miles,  thereby  making  the  above  bonds  in 
effect  a  first  mortgage  on  the  Southwestern  Division. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Baltimore  &  Ohio  Southwestern  Raih-oad  Company  was  organized  in  December,  1889,  as 
the  successor  of  the  Cincinnati,  Washington  &  Baltimore  Railroad  Company,  whose  property  was 
sold  under  foreclosure  in  October,  1889.  On  November  1,  1893,  this  company-  and  the  Oliio  &  Mis- 
sissippi Railway  were  consolidated  into  the  Baltimore  &  Ohio  Southwestern  Railway  Company. 
In  1898  the  latter  went  into  the  hands  of  a  receiver  and  under  a  plan  of  reorganization  dated  Decem- 
ber 15  of  that  year  was  reorganized  and  consolidated  with  the  Baltimore  &  Ohio  Railroad  Company 
in  August,  1899.  Since  July  1, 1900,  the  Baltimore  &  Ohio  Southwestern  Railroad  has  been  operated 
as  the  Southwestern  Division  of  the  Baltimore  &  Ohio  System. 

These  bonds  sold  in  1902  on  a  4.05  to  4.30  basis 

1903  4.15  4.45 

1904  3.92  4.45 

1905  3.80  4.15 

1906  3.98  4.30 

1907  4.25  5.22 

1908  4.05  4.90 

1909  4.20  4.47 

1910  4.27  4.50 

1911  4.30  4.50 

1912  4.37  4.70 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Vermont, 
Massachusetts  and  Rhode  Island. 


[49  ] 


BALTIMORE   &   OHIO   RAILROAD 


Pittsburgh,  Lake  Erie  &  West  Virginia  System  Refunding  Mortgage  Gold  4s 

Dated  November  1,  1901  Maturing  November  1,  1941 

Interest  payable  May  1  and  November  1  at  the  company's  office,  2  Wall  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $75,000,000  Outstanding  $43,372,000 

Per  mile  .    .  26,235 


Provisions  of      In  addition  to  the  $43,372,000  outstanding  in  the  hands  of  the  public,  $31,609,600  are  reserved 
issue:  to  acquire  additional  prior  lien  bonds  to  be  deposited  under  the  mortgage,  and  $18,400  are  held 

in  the  treasury. 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Baltimore  &  Ohio  Railroad  and  are  secured 

by  first  and  second  collateral  liens  on  securities  covering  1,653.07  miles  of  road  and  terminals, 
leaseholds,  equipment  and  future  acquisitions,  as  follows:  (1)  a  first  collateral  lien  on  $24,772,900 
of  the  $47,275,000  bonds,  and  $53,801,240  of  the  $54,484,345  stocks  of  nineteen  railroads  cov- 
ering 1,283.32  miles;  (2)  a  deposit  with  the  trustee  of  $8,660,550  of  the  Baltimore  &  Ohio- 
Pittsburgh  Junction  &  Middle  Division  First  3j^s  of  1925;  (3)  a  second  collateral  lien  on  the 
securities  and  property  covered  by  the  first  collateral  lien  of  the  Baltimore  &  Ohio-Pittsburgh 
Junction  &  Middle  Division  First  3j^s  of  1925. 

Redemption:      The  above  bonds  are  redeemable,  beginning  November  1,  1925,  at  par  on  any  interest  date 
on  three  months'  notice. 


Trustee : 


Union  Trust  Company,  New  York. 


In  1901,  for  the  purpose  of  consolidating  and  refunding  the  bonded  indebtedness  of  the  roads 
acquired  in  that  year,  namely,  the  Cleveland,  Lorain  &  Wheeling  Railroad,  the  Ohio  River  Roads, 
the  Ohio  &  Little  Kanawha  Railroad,  the  West  Virginia  Short  Line  Railroad,  the  Pittsburgh  & 
Western  System,  the  Cleveland  Terminal  &  Valley  Railroad,  the  Monongahela  River  Railroad,  the 
W^est  Virginia  &  Pittsburgh  Railroad,  as  well  as  to  retire  the  Pittsburgh  Junction  &  INIiddle  Division 
bonds,  and  to  provide  for  improvements,  equipment,  etc.,  there  was  authorized  by  a  resolution 
adopted  November  14  of  that  year,  the  above  issue,  to  be  known  as  the  Pittsburgh,  Lake  Erie  & 
West  Virginia  System  Refunding  Mortgage  bonds. 

These  bonds  sold  in  1902  on  a  3.95    to  4.32  basis 


1903 

4.125 

4.35 

1904 

3.97 

4.40 

1905 

4.00 

4.10 

1906 

4.02 

4.35 

1907 

4.22 

5.05 

1908 

4.17 

4.80 

1909 

4.22 

4.45 

1910 

4.40 

4.70 

1911 

4.45 

4.65 

1912 

4.50 

4.75 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  I.sland. 


[50] 


BALTIMORE   &   OHIO    RAILROAD 
3-Year  4^^2%  Secured  Gold  Notes 

Dated  June  1,  1910  Maturing   June  1,  1913 

Interest  payable  June  1  and  December  1  at  the  company's  office,  2  Wall  Street,  New  York, 

or  at  London,  Berlin,  Frankfort-on-the-Main  or  Hamburg. 

Coupon  notes  of  $1,000,  $.5,000  and  $10,000. 
Authorized  $50,000,000  Outstanding  $50,000,000 

Security:  The  above  notes  are  a  direct  obligation  of  the  Baltimore  &  Ohio  Railroad  Company.    They 

are  secured  by  a  deposit  with  the  trustee  of  (1)  $6,000,000  of  the  $28,000,000  Reading  Com- 
pany First  Preferred  stocks;  (2)  $14,000,000  of  the  $42,000,000  Reading  Second  Preferred 
stocks;  (3)  $10,000,000  of  the  $70,000,000  Reading  Company  common  stocks;  (4)  $28,000,000 
(total  amount  issued  of  the  $50,000,000  authorized)  Baltimore  &  Ohio  Chicago  Terminal  First 
4%  bends  which  cover  the  freight  and  passenger  terminals  of  the  company  in  Chicago  and 
approximately  101  miles  of  railroad  lines,  84  miles  being  owned  in  fee  and  the  remainder  held 
under  permanent  lease. 

It  is  provided  by  the  indenture  that  the  railroad  company  "  shall  have  the  right  at  any  time, 
by  payment  to  the  trustee  of  a  specified  amount  of  the  notes,  to  receive  from  the  trustee  such 
proportionate  amount  of  each  class  of  the  securities  hereunder,  as  the  face  amoimt  of  the  notes 
so  paid  and  cancelled  bears  to  the  total  issue,  $50,000,000.  The  railroad  company  shall  also 
have  the  right  to  withdraw  all  or  any  portion  of  the  securities  deposited  hereunder,  upon  sub- 
stitution therefor  of  other  securities  approved  by  the  trustees  as  equal  in  value  to  the  secu- 
rities to  be  withdrawn." 

Redemption:      The  above  notes  are  redeemable,  upon  sixty  days'  notice,  on  any  interest  date  at  par. 

Trustee:  United  States  Mortgage  &  Trust  Company,  New  York. 

The  proceeds  of  $40,000,000  of  these  notes  were  used  for  improvements  and  betterments  and 
for  the  purchase  of  a  large  amount  of  equipment.  $10,000,000  were  issued  to  retire  a  like  amount  of 
notes  which  matured  March  10,  1911. 

These  notes  were  quoted  in  1910  on  a  4.72  basis  (bid) 
1911  4.50 

July,  1912  4.15 


PITTSBURGH   &   CONNELLSVILLE   RAILROAD 

First  Mortgage  Currency  4s 

Dated  May  25,  1868  Maturing  July  1,  1946 

Interest  payable  January  1  and  July  1  at  the  office  of  the  Baltimore  &  Ohio  Railroad 
Company,  2  Wall  Street,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $4,000,000  Outstanding  $4,000 

Per  mile   .    .         23 

The  above  issue  was  dated  May  25,  1868,  to  run  thirty  years,  with  an  interest  rate  of  7%,  but 
was  extended  to  July  1,  1946,  and  the  interest  rate  reduced  to  4%. 
[51  ] 


Provisions  of      Of  the  total  amount  authorized,  $3,996,000  have  been  deposited  under  the  Baltimore  &  Ohio 
issue:  Prior  Lien  33^s  of  1925,  leaving  the  balance,  $4,000,  outstanding  as  above. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  146.39  miles  of  road,  from  Mt.  Savage 

Junction,  Md.,  to  Pittsburg,  Pa.,  also  on  equipment  and  future  acquisitions. 

Equity:  These  bonds  are  prior  in  lien  to  the  £1,352,000  Pittsburgh  &  Connellsville  6s  of  1926  and  the 

$10,000,000  Second  5s  of  1925.  Both  of  these  issues,  as  well  as  $3,996,000  of  the  First  Mort- 
gage Currency  4s  of  1946,  are  deposited  with  the  trustee  of  the  Baltimore  &  Ohio  Prior  Lien 
3Hs  of  1925. 

The  Pittsburgh  &  Connellsville  Railroad,  extending  from  Pittsburg,  to  Mt.  Savage  Junetion, 
was  chartered  on  April  2, 1837.  On  April  18, 1853,  authority  was  given  to  extend  the  line  to  Cumber- 
land, INIaryland,  the  line  being  opened  throughout  in  April,  1870.  The  road  was  leased  for  50  years 
from  January  1,  1876,  (with  the  option  of  renewal)  to  the  Baltimore  &  Ohio  Railroad  Company, 
which  owns  $1,825,114  of  the  total  $1,944,653  capital  stock  and  all  bonds  except  the  outstanding 
$56,000  of  the  above  issue. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hampshire. 


SCHUYLKILL  RIVER  EAST   SIDE   RAILROAD 

First  Mortgage  Gold  4s 

Dated  December  1,  1903  Maturing  June  1,  1925 

Interest  payable  June  1  and  December  1,  at  518  Walnut  Street,  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  prlncijjal  or  fully  rcgisterable. 
Authorized  $5,000,000  Outstanding  $5,000,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  about  11  miles  of  road  in  and  near  Phila- 

delphia; on  about  56  miles  of  second,  third  and  fourth  track  and  sidings,  together  with  connec- 
tion with  the  Reading  Railway;  on  branches;  on  the  Schuylkill  Bridge;  on  other  terminal  and 
dock  property;  and  on  future  acquisitions. 

They  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Baltimore  &  Ohio 
Railroad  Company  by  endorsement. 

Trustee:  The  Pennsylvania  Company  for  Insurances  on  Lives  and  Granting  Annuities,  Philadelphia. 

The  Schuylkill  River  East  Side  Railroad  was  chartered  July  14,  1883.  On  May  19,  1886,  it 
was  consolidated  with  the  Philadelphia,  Newton  &  Chester  Railroad  under  the  name  of  the  former. 
Authority  was  granted  by  the  city  councils  to  build  a  line  of  railroad  through  the  City  of  Phila- 
delphia, and  the  work  was  completed  on  December  2,  1886.  Connection  was  made  with  the  Phila- 
delphia &  Reading  Railroad,  and  the  first  through  train  to  New  York  was  run  over  the  tracks  of  the 
Reading  and  Jersey  Central  Companies  on  December  15,  1886. 

The  road  was  built  from  the  sale  of  $4,500,000  first  mortgage  5%  40-year  bonds  due  Decendjer  1, 
1925,  which  were  guaranteed  by  the  Baltimore  &  Ohio  Railroad  Company.  On  December  1,  1903, 
that  company  exercised  its  right  to  purchase  these  bonds,  and  issued  instead  $5,000,000  bonds 
maturing  June  1,  1925,  but  bearing  interest  at  4%. 

The  Schuylkill  River  East  Side  Railroad  is  one  of  the  controlled  roads  of  the  Baltimore  &  Ohio, 
which  owns  its  entire  capital  stock,  one-half  being  deposited  under  the  First  Mortgage  4s  of  1948 
and  the  remainder  held  in  the  treasury. 

[  52  ] 


These  bonds  sold  in  1903  on  a  4.00    to  4.10  basis 

1904  3.65         4.01 

1905  3.50         3.70 

1906  3.57         3.75 

1907  3.70         4.00 

1908  3.92         4.02 

1909  3.87  (bid) 

1910  3.90         4.02 

1911  4.00  (bid) 
Deceniljcr,  1912  4.05  (bid) 

These  bonds  arc  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hani]jsliire  and  Hli 
aid. 


CENTRAL   OHIO   RAILROAD 

Consolidated  First  Mortgage  Gold  4328 

Dated  .Viigust  30,  1880  Maturing  September  1,  1930 

Interest  payable  March  1  and  September  1  at  the  company's  ofhee,  2  Wall  Street,  New  York. 

Coupon  bonds  of  $1,000. 
Authorized  $2,500,000  Outstanding  $1,009,000 

Per  mile  .    .  8,340 

Provisions  of      In  addition  to  the  $1,009,000  bonds  outstanding,  $1,491,000  arc  deposited  under  the  Baltimore 
issue:  &  Ohio-Pittsburgh  Junction  &  Middle  Division  3>^s  of  1925. 

Security:  The  above  issue  is  secured  by  a  first  mortgage  on  the  company's  line  from  Bellaire  to  Colum- 

bus, Ohio,  a  distance  of  120.69  miles,  including  an  undivided  half  interest  (16.56  miles)  in  the 
33  miles  between  Newark  and  Columbus.  The  other  half  interest  is  owned  by  the  Pittsburgh, 
Cincinnati,  Chicago  &  St.  Louis  Railway. 

Pittsburgh,  Lake  Erie  &  West  Virginia  Refunding  4s  of  1941  are  reserved  to  acquire  the  out- 
standing bonds  of  this  issue. 

Trustee:  Mercantile  Trust  &  Deposit  Company,  Baltimore. 

The  Central  Ohio  Railroad  was  chartered  February  8, 1847,  and  the  road  was  opened  for  business 
in  1854.  Four  years  later  it  was  placed  in  the  hands  of  a  receiver  and  on  November  1,  1865,  it 
was  reorganized.  In  Novenil)er,  1866,  an  agreement  was  made  with  the  Baltimore  &  Ohio  Rail- 
road Company  by  which  the  road  was  to  be  operated  for  twenty  years.  On  February  23,  1880, 
the  lease  was  extended  until  December  1,  19:26,  subject  to  perpetual  lease  thereafter  in  periods  of 
twenty  years,  at  the  ojjtion  of  the  Baltimore  &  Ohio  Railroad  Company. 


These  bonds  sold  in  1903  on 

a  4.00  basis 

1904 

3.90 

1905 

3.90  to  4.00 

1906 

3.90 

1909 

4.28 

1910 

4.48  (bid) 

1911 

4.42  (bid) 

December,  1912 

4.50 

;onsidered  a  legal  investment  for  savings  bank; 

[53  ] 

Maine  and  Rhode  Island. 


PITTSBURGH   JUNCTION   RAILROAD 

First  Mortgage  Gold  6s 

Dated  July  5,  1882  Maturing  July  1,  1922 

Interest  payable  January  1  and  July  1  at  the  company's  office,  2  Wall  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $1,440,000  Outstanding  $934,000 

Per  mile  .    .     144,360 

Provisions  of     Besides  the  amount  outstanding,  as  above,  there  have  been  deposited  under  the  Baltimore  & 
issue:  Ohio-Pittsburgh  Junction  &  Middle  Division  First  Mortgage  S^^s  of  1925,  $481,000  of  these 

bonds,  and  under  the  Baltimore  &  Ohio-Pittsburgh,  Lake  Erie  &  West  Virginia  System  Re- 
funding 4s  of  1941,  $25,000. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Willow  Grove, 

to  Laughlin,  Pa.,  and  from  36th  Street  to  9th  Street,  Pittsburg,  Pa.,  6.57  miles,  together  with  22 
miles  of  extra  main  track  and  sidings,  all  in  or  near  Pittsburg. 

The  above  bonds  upon  maturity,  if  not  before,  wUl  be  refunded  by  the  Baltimore  &  Ohio- 
Pittsburgh,  Lake  Erie  &  West  Virginia  System  Refunding  4s  of  1941,  a  sufficient  number  of 
which  have  been  reserved  for  this  purpose. 

Trustee:  Bankers  Trust  Company,  New  York. 

The  Pittsburgh  Junction  Railroad,  which  was  chartered  in  August,  1881,  is  controlled  by  the 
Baltimore  &  Ohio  Railroad  Company  through  ownership,  at  the  present  time,  of  all  the  preferred  and 
all  but  $30,250  of  the  $1,475,000  common  stock  of  the  company.  By  the  terms  of  a  traffic  agreement 
with  the  Pittsburgh  Junction  Railroad,  the  Baltimore  &  Ohio  Railroad  as  lessee  of  the  Pittsburgh 
&  Connellsville  Railroad  and  the  Pittsburgh  &  Western  Raih-oad  Companies  agrees  to  furnish  freight 
business  to  the  former  up  to  at  least  $240,000  gross  per  annum.  The  earnings  of  the  Pittsburgh 
Junction  Railroad  have  been  included  in  those  of  the  Baltimore  &  Ohio  Company  since  1902. 

These  bonds  sold  in  1903  on  a  4.25  to  4.65  basis 


1904 

4.23   4.45 

1909 

4.47  (bid) 

1910 

4.68  (bid) 

1911 

4.60  (bid) 

',  1912 

4.50  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  ]Maine  and  Rhode  Island. 


54] 


PITTSBURGH   JUNCTION   RAILROAD 


Second  Mortgage  Gold  5s 

Dated  April  2,  1894 

Interest  payable  January  1  and  July  1  at  the  company's  office, 


Maturing  July  1,  1922 
Wall  Street,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $300,000 


Outstanding  $243,000 


Provisions  of      Besides  the  amount  outstanding,  as  above,  $57,000  have  been  deposited  under  the  Pittsburgh 
issue:  Junction  &  Middle  Division  First  Mortgage  sy^s  of  1925,  and  the  Baltimore  &  Ohio-Pittsburgh, 

Lake  Erie  &  West  Virginia  System  Refunding  4s  of  1941. 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  terminal  property  in  or  near  Pitts- 

burg which  is  covered  by  the  first  lien  of  the  First  Mortgage  6s  of  1922. 

The  above  bonds,  upon  maturity,  if  not  before,  will  be  refunded  by  the  Baltimore  &  Ohio- 
Pittsburgh,  Lake  Erie  &  West  Virginia  System  Refunding  4s  of  1941,  a  sufficient  number  of 
which  have  been  reserved  for  this  purpose. 

Trustee:  Bankers  Trust  Company. 

These  bonds  sold  in  1902  on  a  4.72  to  4.85  basis 

1909  4.80  (bid) 

1910  5.22  (bid) 

1911  6.25  (bid) 
December,  1912     6.25  (bid) 


PITTSBURGH   &  WESTERN   RAILWAY 


First  Consolidated  Mortgage  Gold  4s 

Dated  July  1,  1887  Maturing  July  1,  1917 

Interest  payable  January  1  and  July  1  at  the  office  of  J.  P.  Morgan  &  Co.,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $10,000,000 


Outstanding  $650,000 
Per  mile  .    .  3,090 


Provisions  of      The  above  issue  has  been  limited  by  the  terms  of  the  Baltimore  &  Ohio-Pittsburgh,  Lake 
issue:  Erie  &  West  Virginia  System  First  Refunding  4s  of  1941,  to  $9,700,000,  of  which  $9,050,000 

have  been  deposited  already  under  it,  leaving  a  balance  outstanding  of  $650,000  as  above. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  210.63  miles  of  the  company's  road, 

together  with  appurtenances,  equipment,  and  future  acquisitions.    The  bonds  are  secured  by 
a  first  mortgage  on  180.63  miles  of  road,  including  the  line  from  Rock  Point  to  New  Castle, 
Pa.,  and  by  a  second  mortgage  on  30  miles  of  road  from  Etna  to  Zelienople,  Pa. 
Baltimore  &  Ohio-Pittsburgh,  Lake  Erie  &  West  Virginia  System  First  Refunding  4s  of  1941, 
in  sufficient  number,  have  been  reserved  to  acquire  the  outstanding  bonds  of  this  issue. 

Trustee:  Bankers  Trust  Company,  New  York. 

The  Pittsburgh  &  Western  Railway  Company  was  a  reorganization  of  the  Pittsburgh  &  W^estern 
Railroad  Company  in  1887.    In  March,  1896,  a  receiver  for  the  Railway  was  appointed  and  a  decree 

[53  ] 


of  foreclosure  entered  February  21,  1900.  The  company's  property  was  sold  under  the  foreclosure 
in  1901,  and  was  reorganized  as  the  Pittsburgh  &  Western  Railroad  Company,  the  entire  capital 
stock  of  which  is  owned  by  the  Baltimore  &  Ohio  Railroad  and  deposited  with  the  trustee  of  its 
West  Virginia  System  First  Refunding  4s  of  1941. 

These  bonds  sold  in  1902  on  a  3.77  to  4.00  basis 


1903 

3.95 

4.20 

1904 

4.00 

4.20 

1905 

4.00 

4.25 

1906 

4.00 

4.57 

1907 

4.75 

5.50 

1908 

3.875 

1909 

4.22 

4.30 

1910 

4.60  (bid) 

1911 

4.45 

4.50 

1912 

4.80 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Rhode  Island. 

PITTSBURGH,   NEW   CASTLE   &  LAKE   ERIE  RAILROAD 

First  Mortgage  Extended  Gold  4s 

Dated  June  1,  1878  Maturing  June  1,  1917 

Interest  payable  June  1  and  December  1  at  the  First  National  Bank,  Allegheny,  Pa. 

Coupon  bonds  of  $100,  $500  and  $1000. 
Authorized  $225,000  Outstanding  $82,100 

Per  mile  .    .       2,730 

The  date  of  maturity  of  the  above  issue  was  extended  from  June  1,  1898,  to  June  1,  1917,  as 
above. 

Provisions  of      The  above  issue  was  limited  by  the  terms  of  the  Baltimore  &  Ohio-Pittsburgh,  Lake  Erie  & 
issue:  West  Virginia  System  First  Refunding  4s  of  1941,  to  $219,000,  of  which  $130,900  have  already 

been  deposited  under  it,  leaving  $82,100  outstanding  as  above. 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  30  miles  of  road  from  Etna  to  Zclienople, 

Pa.,  and  future  acquisitions  to  the  property.  The  bonds  were  ASSUMED  by  the  Pittsburgh 
&  Western  Railway  Company. 

Equity:  These  bonds  are  prior  in  lien  to  the  Pittsburgh  &  Western  First  Consolidated  4s  of  1917  and 

to  the  Second  5s  of  1941.  A  sufficient  number  of  the  Baltimore  &  Ohio-Pittsburgh,  Lake  Erie 
&  West  Virginia  System  First  Refunding  4s  of  1941  have  been  reserved  to  acquire  the  outstand- 
ing bonds  of  this  issue. 

The  Pittsburgh,  New  Castle  &  Lake  Erie  Railroad  Company  was  consolidated  into  the  Pittsburgh 
&  Western  Railway,  its  bonds  being  assumed  by  the  latter  at  that  time.  The  Pittsburgh  &  Western 
Railway,  as  the  result  of  its  reorganization  in  1901,  came  under  the  control  of  the  Baltimore  &  Ohio 
Railroad  by  the  purchase  of  its  entire  capital  stock. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Rhode  Island. 

[5C  ) 


ELLWOOD   SHORT   LINE   RAILROAD 
First  Mortgage  Gold  5s 

Dated  January  1,  1892  Maturing  January  1,  1922 

Interest  payable  January  1  and  July  1  at  the  company's  office,  2  Wall  Street,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $.'500,000  Outstanding  $:!()0,000 

Per  mile  .    .        96,770 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  3.1  miles  of  the  comj)any's  road  from 

North  Sewickley  to  Rocky  Point,  Pa.,  together  with  equipment. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Pittsburgh 
&  Western  Railway  Company  by  endorsement. 

A  sufficient  number  of  the  Baltimore  &  Ohio-Pittsburgh,  Lake  Erie  &  West  Virginia  System 
First  Refunding  4s  of  1941  have  been  reserved  to  acquire  these  bonds. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  Ellwood  Short  Line  Railroad  was  organized  in  the  State  of  Pennsylvania,  April  '25,  18))0, 
and  the  road  was  opened  for  traffic  August  15,  1891.  At  that  time  it  was  leased  to  the  Pittsburgh  & 
Western  Railway  Company  for  30  years.  When  the  latter  company  went  into  tlie  receiver's  hands, 
the  Ellwood  Short  Line  Railroad  was  purchased  by  its  receiver  May  6,  1898.  At  the  present  time  it 
is  controlled  by  the  Pittsburgh  &  Western  Railway  Company  through  ownership  of  its  entire 
capital  stock. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Rhode  Island. 


PITTSBURGH,   CLEVELAND   &   TOLEDO   RAILROAD 
First  Mortgage  Gold  6s 

Dated  October  2,  1882  .Maturing  Octol^er  1,  1922 

Interest  payable  April  1  and  October  1  at  the  company's  office,  2  W^all  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $2,400,000  Outstanding  $441,000 

Per  mile  .    .         7,220 

Provisions  of      Besides  the  amount  outstanding,  as  above,  there  are  $1,959,000  of  the  above  Iwnds  deposited 
issue:  with  the  trustee  of  the  Baltimore  &  Ohio-Pittsburgh,  Lake  Erie  &  West  Virginia  System  First 

Refunding  4s  of  1941. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  61.07  miles  of  road,  equipment,  and  future 

acquisitions,  including  the  company's  road  from  Newcastle  Junction,  Pa.,  to  Newton  Falls,  Ohio. 

The  above  bonds  are  GUARANTEED  as  to  INTEREST  by  the  Pittsburgh  &  Western  Railway 
and  the  Baltimore  &  Ohio  Railroad  Companies,  JOINTLY  and  SEVERALLY  by  endorsement. 

[  57  ] 


A  sufficient  number  of  the  above-mentioned  West  Virginia  System  First  Refunding  4s  of  1941 
have  been  reserved  to  retire  the  outstanding  bonds  of  this  issue. 

Trustee:  Central  Trust  Company,  New  York. 

The  Pittsburgh,  Cleveland  &  Toledo  Railroad  Company  was  chartered  June  5,  1882,  under  the 
laws  of  Ohio  and  Pennsylvania.  The  road  was  opened  for  traffic  March  1,  1884,  and  was  leased  to 
the  Pittsburgh  &  Western  Railway  Company  for  99  years  from  July  15th  of  that  year,  the  lessee 
guaranteeing  the  pajonent  of  the  interest  on  the  company's  bonds.  This  guaranty  was  assumed 
by  the  Baltimore  &  Ohio  Railroad  Company  under  an  agreement  requiring  the  Pittsburgh  & 
Western  Railroad  Company  to  pay  the  Central  Trust  Company  of  New  York  $12,000  a  month  on 
account  of  rental,  default  to  entail  a  forfeiture  of  the  lease,  etc.  The  entire  capital  stock  of  the 
Pittsburgh,  Cleveland  &  Toledo  Railroad  is  owned  by  the  Baltimore  &  Ohio  Railroad  (which  has 
operated  the  property  as  a  part  of  its  system  since  Julj'  1,  1902),  and  deposited  under  the  above- 
mentioned  West  Virginia  System  First  Refunding  Mortgage. 

These  bonds  sold  in  1904  on  a  3.60    to  4.40  basis 

1909  4.875  (bid) 

1910  4.52  (bid) 

1911  4.45 

1912  4.35 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Rhode  Island. 


OHIO   RIVER   RAILROAD 
First  Mortgage  Gold  5s 

Dated  June  1,  1886  Maturing  June  1,  1936 

Interest  payable  June  1  and  December  1  at  the  company's  office,  2  Wall  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized,  $2,000,000  Outstanding  $2,000,000 

Per  mile  .    .  11,835 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Deadwood,  Ohio, 

to  Point  Pleasant,  W.  Va.,  169  miles.    They  are  also  secured  by  a  first  mortgage  on  the  equip- 
ment and  future  acquisitions  of  the  line. 

Equity:  These  bonds  are  prior  in  lien  to  the  Ohio  River  Railroad  General  5s  of  1937.    A  sufficient  num- 

ber of  Baltimore  &  Ohio-Pittsburgh,  Lake  Erie  &  West  Virginia  First  Refunding  4s  of  1941, 
have  been  reserved  to  retire  this  issue. 

Trustee:  Fidehty  Trust  Company,  Philadelphia. 

The  Ohio  River  Railroad  Company  was  chartered  April  18,  1881,  under  the  laws  of  West  Vir- 
ginia, and  opened  throughout  in  April,  1888.  This  company  is  controlled  by  the  Baltimore  &  Ohio 
Railroad  Company  through  the  ownership  of  more  than  99%  of  its  capital  stock,  which  is  deposited 
under  its  West  Virginia  System  First  Refunding  Mortgage.  Since  July  1,  1902,  the  road  has  been 
operated  as  a  part  of  the  Baltimore  &  Ohio  Railroad  System,  and  its  earnings  and  expenses  are  in- 
cluded in  the  General  Income  Account. 

[  58  J 


These  bonds  sold  in  1902  on  a  4.22  to  4.27  basis 


1903 

4.18 

4.22 

1904 

4.05 

4.40 

1905 

3.95 

1906 

4.07 

4.20 

1908 

4.31 

4.38 

1909 

4.15 

4.25 

1910 

4.38 

(bid) 

1911 

4.35 

1912 

4.38 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


OHIO    RIVER   RAILROAD 


General  Mortgage  Gold  5s 


Dated  March  10,  1887 


Maturing  April  1,  1937 


Interest  payable  April  1  and  October  1  at  2  Wall  Street,  New  York. 
Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $3,000,000 


Outstanding  $2,941,000 
Per  mile .    .  14,070 


Provisions  of      There  remain  at  present  $59,000  of  these  bonds  unissued,  and  by  the  terms  of  the  Baltimore 
issue:  &  Ohio  West  Virginia  System  First  Refunding  4s  of  1941,  they  will  be  deposited  thereunder 

when  and  if  issued. 


Security : 


Trustee: 


The  above  bonds  are  secured  by  a  direct  mortgage  on  207.82  miles  of  road,  together  with  ap- 
purtenances, equipment  and  future  acquisitions.  They  are  secured  by  a  first  mortgage  on 
38.82  miles  of  road,  and  a  second  mortgage  on  169  miles,  covered  by  the  first  lien  of  the  Ohio 
River  Railroad  First  5s  of  1936. 

A  sufficient  number  of  the  Baltimore  &  Ohio-Pittsburgh,  Lake  Erie  &  West  Virginia  System 
First  Refunding  4s  of  1941  have  been  reserved  to  retire  the  outstanding  bonds  of  this  issue. 

Fidelity  Trust  Company,  Philadelphia. 


For  history  see  above. 


These  bonds  sold  in  1902  on  a  4.40  to  4.55  basis 
1904  4.25       4.38 


1905 

4.15   4.38 

1906 

4.15   4.40 

1908 

4.42   4.95 

1909 

4.25   4.50 

1910 

4.80  (bid) 

1911 

4.38   4.60 

1912 

4.62 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 

[  -^9  ] 


HUNTINGTON   &  BIG  SANDY   RAILROAD 
First  Mortgage  Gold  6s 

Dated  July  1,  1892  Maturing  July  1,  1922 

Interest  payable  January  1  and  July  1  at  2  Wall  Street,  New  York. 

Coupon  honds  of  $1,000,  registeral)le  as  to  jirincipal. 
Authorized  $400,000  Outstanding  $303,000 

Per  mile  .    .       27,550 

Provisions  of      Besides  the  amount  outstanding,  as  above,  there  are  $97,000  of  these  bonds  deposited  with  the 
issue:  trustee  of  the  Baltimore  &  Ohio-Pittsburgh,  Lake  Erie  &  West  Virginia  System  First  Refund- 

ing 4s  of  1941. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  10.92  miles  of  road,  including  the  line 

from  Huntington  to  Kenova,  W.  Va.    They  are  also  secured  by  a  first  mortgage  on  all  the 
equipment  of  the  line  and  future  acquisitions. 

The  above  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Ohio 
River  Railroad  Company  by  endorsement. 

A  sufficient  number    of    the  above-mentioned  West  Virginia  System  First  Refunding  4s  of 
1941  have  been  reserved  to  retire  the  outstanding  bonds  of  this  issue. 

Trustee:  Provident  Life  &  Trust  Company,  Philadelphia. 

Tlie  Huntington  &  Big  Sandy  Railroad  was  chartered  April  12,  1890,  under  the  laws  of  West 
Virginia.  The  road  was  completed  during  1892,  and  leased,  in  September  of  that  year,  to  the 
Ohio  River  Railroad  Company,  which  guaranteed  by  endorsement  princijial  and  interest  on  its 
bonds. 

These  bonds  were  quoted  in  1910  on  a  5.10  basis 
1911  5.40 

December,  1912  5.45 

These  l)onds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


MONONGAHELA   RIVER  RAILROAD 

First  Mortgage  Gold  5s 

Dated  February  1,  1889  Maturing  February  1,  1019 

Interest  payable  February  1  and  August  1  at  2  Wall  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerablo  as  to  ijrinoijjal. 
Authoriz.'d  $700,000  Outstanding  .$700,000 

Per  mile  .    .       23,330 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Clarksburg  to 

Fairmount,  W.  Va.,  30.24  miles,  together  with  equiijnient  and  future  acquisitions. 

The  above  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Balti- 
more &  Ohio  Railroad  Company  by  endorsement. 
[GO  ] 


A  sufBcient  number  of  the  Baltimore   &  Ohio-Pittsburgh,  Lake   Erie  &  West  Virginia  Sys- 
tem First  Refunding  4s  of  1941  have  been  reserved  to  acquire  this  issue. 

Trustee:  Mercantile  Trust  &  Deposit  Company,  Baltimore. 

The  Monongahela  River  Railroad  was  chartered  September  28,  1888,  and  was  opened  for  traffic 
August  4,  1890.  The  company  is  controlled  by  the  Baltimore  &  Ohio  Railroad  Company  through 
ownership  of  its  entire  capital  stock,  which  has  been  pledged  under  the  above-mentioned  West 
Virginia  System  First  Refunding  Mortgage. 


rhese  bonds  sold  in  1902  on 

a  3.85  basis 

1904 

4.50 

1905 

4.20 

1907 

4.38 

1909 

4.57  to  4.87 

1910 

3.25       3.80 

1911 

4.70 

1912 

4.40       4.70 

These  bonds  arc  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 

WEST  VIRGINIA   &  PITTSBURGH   RAILROAD 
First  Mortgage  Gold  4s 

Dated  April  1,  1890  Maturing  April  1,  1990 

Interest  i)ayable  April  1  and  October  1  at  2  Wall  Street,  New  York. 

Coupon  bonds  of  $1,000,  rcgisterable  as  to  princij)al. 

Authorized  $4,000,000  Outstanding  $3,973,000  (4s) 

9,000  (5s) 
Per  mile    .    .        22,500 

In  1899  the  interest  rate  of  this  bond  issue  was  reduced  from  5%  to  4%.  The  5s  outstand- 
ing have  been  reduced  to  the  amount  mentionetl  above. 

Provisions  of      Besides  the  $3,982,000  of  these  bonds  in  the  hands  of  the  public  at  the  present  time,  there  arc 
issue:  $18,000  of  this  issue  deposited  under  the  Baltimore  &  Ohio-Pittsburgh,  Lake  Erie  &  West 

Virginia  System  First  Refunding  4s  of  1941,  a  sufficient  number  of  which  have  been  reserved 
to  acquire  eventually  the  outstanding  bonds  of  this  issue. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  lines,  totalling  177.13  miles. 

They  are  also  secured  by  a  first  mortgage  on  certain  tracts  of  timber,  coal  and  mineral  lands 
in  Pocahontas,  Webster  and  Nicholas  Counties,  West  Virginia,  comprising  134,842  acres. 

These  bonds  are  GUARANTEED  as  to  INTEREST  under  terms  of  lease  by  the  Baltimore  & 
Ohio  Railroad  Company.  The  payment  of  the  principal  was  assumed  by  the  latter  company 
by  the  terms  of  an  agreement  stamped  on  the  bonds  at  the  time  the  interest  rate  was  reduced 
from  5%. 

Sinking  Fund:  The  Baltimore  &  Ohio  Railroad  agrees  to  pay  .semi-annually  to  the  trustee  $1,500,  beginning 
October  1,  1895,  to  ])urchase  these  bonds  up  to  110,  and  interest.  If  not  so  purchasable  at 
this  price,  the  fund  is  to  be  invested  in  other  securities,  to  be  designated  by  the  company.  It 
is  also  agreed  that  the  bonds  so  held  shall  be  kept  alive  by  the  trustee  and  the  interest  thereon 
paid  to  the  company. 

[  01  ] 


Trustee:  Mercantile  Trust  &  Deposit  Company,  Baltimore. 

The  West  Virginia  &  Pittsburgli  Railroad  Company  was  chartered  February  6,  1890,  under  the 
laws  of  West  Virginia,  as  a  consolidation  of  the  Clarksburg,  Weston  &  Midland  Railroad  and  the 
Buchannon  River  Railroad  Companies.  The  company's  lines  were  leased  to  the  Baltimore  &  Ohio 
Railroad  for  999  years  from  January  1,  1890.  Its  entire  capital  stock  is  also  owned  by  the  latter, 
and  has  been  deposited  under  its  West  Virginia  System  First  Refunding  Mortgage. 

These  bonds  were  quoted  in  1909  on  a  4.20  basis 

1910  4.20 

1911  4.30 
December,  1912  4.45 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


CLEVELAND   TERMINAL   &   VALLEY    RAILROAD 
First  Mortgage  4s 

Dated  October  29,  1895  Maturing  November  1,  1995 

Interest  payable  May  1  and  November  1  at  2  Wall  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal,  or  fully  registerable. 

Authorized  $6,000,000  Outstanding  $3,301,000 

Per  mile  .    .  37,940 

Provisions  of      Besides  the  amount  outstanding,  as  above,  $2,699,000  of  these  bonds  have  been  deposited  under 
issue:  the   mortgage  of  the   Baltimore   &   Ohio-Pittsburgh,    Lake   Erie   &  West  Virginia   System 

First  Refunding  4s  of  1941,  a  sufficient  number  of  which  have  been  reserved  to  retire  the  out- 
standing bonds  of  this  issue. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  86.8  miles  of  road  including  the  line  from 

Cleveland  to  Valley  Junction,  Ohio.    They  are  also  secured  by  a  first  mortgage  on  terminal 
realty,  equipment  and  future  acquisitions. 

The  above  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Bahi- 
more  &  Ohio  Railroad  by  endorsement. 

Trustee:  Bankers  Trust  Company,  New  York. 

The  Cleveland  Terminal  &  Valley  Railroad  Company  was  chartered  under  the  laws  of  Ohio,  as 
successor  to  the  Valley  Railway  Company,  on  October  3,  1895.  The  company  is  controlled  by  the 
Baltimore  &  Ohio  Railroad  Company  through  the  ownership  of  practically  all  the  capital  stock, 
which  has  been  deposited  under  its  West  Virginia  System  First  Refunding  Mortgage. 

These  bonds  sold  in  1902  at  par  (approximately) 

1908  at  4.40 

1909  4.25  (bid) 

1910  4.25  (bid) 

1911  4.30  (bid) 
December,  1912  4.45  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 

[  62  ] 


CLEVELAND,   LORAIN   &  WHEELING   RAILWAY 
Consolidated  Mortgage  Gold  5s 

Dated  November  24,  1893  Maturing  October  1,  1933 

Interest  payable  April  1  and  October  1  at  2  Wall  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $5,000,000  Outstanding  $5,000,000 

Per  mile  .    ,  26,040 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  191.55  miles  of  road,  all  in  Ohio,  and  future 

acquisitions. 

Equity:  These  bonds  are  prior  in  lien  to  the  Cleveland,  Lorain  &  Wheeling  General  4s  of  1936,  and  the 

Consolidated  Refunding  4>^s  of  1930. 

A  sufBcient  number  of  Baltimore  &   Ohio-Pittsburgh,  Lake   Erie  &  West   Virginia   System 
First  Refunding  4s  of  1941  have  been  reserved  to  retire  this  issue. 

Trustee:  United  States  Mortgage  &  Trust  Company,  New  York. 

The  Cleveland,  Lorain  &  Wheeling  Railway  Company  was  chartered  November  23,  1893, 
under  the  laws  of  Ohio  as  the  consolidation  of  the  Cleveland,  Lorain  &  Wheeling  Railroad  and  the 
Cleveland  &  Southwestern  Railway  Companies.  The  company's  entire  capital  stock  is  owned  by 
the  Baltimore  &  Ohio  Railroad  and  pledged  under  its  West  Virginia  System  First  Refunding  Mort- 
gage.   The  property  of  the  company  is  operated  as  an  integral  part  of  the  Baltimore  &  Ohio  Sj'stem. 

These  bonds  sold  in  1902  on  a  4.27  to  4.45  basis 


1903 

4.25 

1904 

4.07 

1905 

4.07  to  4.25 

1906 

4.15 

4.38 

1909 

4.10 

4.30 

1910 

4.10 

4.38 

1911 

4.20 

4.25 

1912 

4.25 

4.45 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Rhode  Island. 


[  G3  ] 


CLEVELAND,   LORAIN  &  WHEELING   RAILWAY 

General  Mortgage  Gold  5s 

Dated  June  1,  1890  Maturing  June  1,  1936 

Interest  j^ayable  June  1  and  December  1  at  2  Wall  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $1,000,000  Outstanding  $890,000 

Per  mile  .    .         4,630 

Provisions  of      Of  the  amount  authorized,  $893,000  have  been  issued.     Of  this  amount  $890,000  are  in  the 

issue:  hands  of  the  public,  and  $3,000  have  been  deposited  under  the  mortgage  of  the  Baltimore  & 

Ohio-Pittsburgh,  Lake  Erie  &  West  Virginia  System  First  Refunding  4s  of  1941.    The  unissued 

balance,  if  issued,  will  be  deposited  under  the  same  mortgage,  and  a  sufficient  number  of  the 

above-mentioned  West  Virginia  System  4s  of  1941  have  been  reserved  to  retire  this  issue. 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  same  property  covered  by  the 

Cleveland,  Lorain  &  Wheeling  Railway  First  Consolidated  5s  of  1933. 

Redemption:      These  bonds  are  redeemable  at  105  and  interest  upon  30  days'  notice. 

Trustee:  New  York  Trust  Company,  New  York. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


CLEVELAND,   LORAIN  &  WHEELING   RAILWAY 
Consolidated  Refunding  Mortgage  Gold  4Vl>s 

Dated  January  1,  1900  Maturing  January  1,  1930 

Interest  payable  January  1  and  July  1  at  i  Wall  Street,  New  York. 

Coui)on  bonds  of  $1,000,  registerable  as  to  |)rinci])al. 

Authorized  $10,000,000  Outstanding  $950,000 

Per  mile  .    .         4,950 

Provisions  of      Of  the  amount  authorized,  $4,000,000  of  these  bonds  have  been  issued,  of  which  $950,000  are 
issue:  in  the  hands  of  the  public,  as  above,  and  $3,050,000  have  been  deposited  under  the  Baltimore 

&  Ohio-Pittsburgh,  Lake  Erie  &  West  Virginia  System  First  Refunding  4s  of  1941.  The  un- 
issued balance  has  been  provided  for  by  terms  of  the  West  Virginia  System  4s  of  1941,  which 
makes  this  a  closed  mortgage. 

Security:  The  above  bonds  are  secured  by  a  third  mortgage  on  the  same  property  covered  by  the  Cleve- 

land, Lorain  &  Wheeling  Railway  Consolidated  5s  of  1933  and  the  General  5s  of  1936. 
[  64  ] 


Redemption:      These  bonds  are  redeemable  at  102 J^  and  interest  upon  30  days'  notice. 

Equity:  These  bonds  are  prior  to  the  Baltimore  &  Ohio-Pittsburgh,  Lake  Erie  &  West  Virginia  System 

4s  of  1941,  a  sufEcient  number  of  which  have  been  reserved  to  retire  this  issue. 

Trustee:  Equitable  Trust  Company,  New  York. 

These  bonds  were  quoted  in  1909  on  a  4.55  basis 

1910  4.90 

1911  4.90 
December,  1912  4.65 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


OHIO   &   LITTLE  KANAWHA  RAILROAD 

First  Mortgage  5s 

Dated  March  1,  1900  Maturing  March  1,  1950 

Interest  payable  March  1  and  September  1  at  2  Wall  Street,  New  York. 

Coupon  bonds  of  $100,  $500  and  $1,000. 

Authorized  $250,000  Outstanding  $228,000 

Per  mile  .   .         3,170 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Fair  Oaks  to 

West  Marietta,  Ohio,  72.04  miles,  and  the  equipment  of  the  line. 

Redemption:      These  bonds  are  redeemable  at  105  and  interest  upon  90  days'  notice. 

Refund:  A  sufficient  number  of  the  Baltimore  &  Ohio-Pittsburgh,  Lake  Erie  &  West  Virginia  System 

First  Refunding  4s  of  1941  have  been  reserved  to  retire  this  issue. 

Trustee:  Knickerbocker  Trust  Company,  New  York. 

The  Ohio  &  Little  Kanawha  Railroad  was  chartered  February  10,  1900,  under  the  laws  of  West 
Virginia,  as  the  successor  to  the  Zanesville  &  Ohio  Railway  Company.  A  majority  of  its  capital  stock 
is  owned  by  the  Baltimore  &  Ohio  Railroad  Company  and  has  been  pledged  under  its  West  Vir- 
ginia System  First  Refunding  Mortgage.  The  property  of  the  company  is  operated  as  an  integral 
part  of  the  Baltimore  &  Ohio  System. 

These  bonds  sold  in  1903  on  a  4.77  to  5.15  basis 

1904  4.70       5.00 

1905  4.72 

1907  4.67       5.00 

1908  4.80 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 

[65] 


RAVENSWOOD,   SPENCER  &   GLENVILLE   RAILWAY 


First  Mortgage  Gold  6s 


Dated  August  1,  1890 


Maturing  August  1,  1920 


Interest  payable  February  1  and  August  1  at  2  Wall  Street,  New  York. 
Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $400,000 


Outstanding  $361,000 
Per  mile  .    .       11,280 


Provisions  of 
issue: 


Security : 


Trustee: 


Of  the  total  amount  authorized,  $376,000  have  been  issued,  of  which  $361,000  are  outstand- 
ing, as  above,  and  $15,000  have  been  deposited  under  the  mortgage  of  the  Baltimore  &  Ohio- 
Pittsburgh,  Lake  Erie  &  West  Virginia  System  First  Eefunding  4s  of  1941.  The  unissued 
balance,  if  issued,  is  to  be  deposited  under  the  above  mortgage,  and  a  sufficient  number  of 
the  West  Virginia  System  First  Refunding  4s  of  1941  have  been  reserved  to  retire  these  out- 
standing bonds. 

The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Ravenswood 
to  Spencer,  W.  Va.,  32.4  miles.  They  are  also  secured  by  a  first  mortgage  on  the  equipment 
of  the  line  and  all  future  acquisitions. 

The  above  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Ohio 
River  Railroad  Company  by  endorsement. 

Fidelity  Trust  Company,  Philadelphia. 


The  Ravenswood,  Spencer  &  Glenville  Railroad  was  chartered  April  10,  1886,  under  the  laws  of 
West  Virginia,  and  was  opened  for  traffic  on  January  4,  1892.  It  is  controlled  by  the  Baltimore  & 
Ohio  Railroad  Company  through  the  ownership  of  a  majority  of  the  capital  stock  and  is  operated 
as  a  part  of  that  company's  system. 

These  bonds  were  bid  in  1909  on  a  4.80  basis 

1910  4.90 

1911  4.88 
December,  1912  5.20 


[66] 


BALTIMORE   &    OHIO    RAILROAD 
Equipment  Trust  4%%  Certificates 

Dated  February  1,  1912  Maturing  February  1,  1913/1922 

Interest  payable  February  1  and  August  1  at  2  Wall  Street,  New  York. 

Coupon  certificates  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Authorized  $10,000,000  Outstanding  $10,000,000 

Security:  The  equipment  trust  agreement  of  this  issue  provides  that  the  face  amount  of  the  certificates 

shall  not  at  any  time  exceed  90%  of  the  cost  of  equipment  delivered  to  the  trustee  as  security 
for  the  payment  of  principal  and  semi-annual  dividend  warrants. 

These  certificates  are  secured  by  120  consolidated  locomotives,  30  Pacific  type  locomotives, 
3,000  steel  hopper  cars,  2,000  steel  coke  cars,  2,000  steel  underframe  box  cars,  and  1,000  gon- 
dola cars. 

The  Baltimore  &  Ohio  agrees  to  lease  and  maintain  the  equipment  and  to  pay  as  rental  there- 
for an  amount  sufficient  to  pay  the  taxes,  expenses,  dividends  and  principal  of  the  above 
certificates. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

These  certificates  were  underwritten  in  January,  1912,  by  Kuhn,  Loeb  &  Company,  and  Speyer 
&  Company,  New  York,  and  offered  on  about  a  4^^  basis. 


[  67  ] 


BANGOR  &  AROOSTOOK  RAILROAD  COMPANY 


BANGOR  &  AROOSTOOK  RAILROAD  COMPANY 


HISTORY 

The  Bangor  &  Aroostook  Railroad  Company  was  chartered  under  the  laws  of  the  State  of 
Maine,  March  5,  1891.  The  original  line  was  opened  for  transportation  from  Bangor  to  Caribou 
and  Fort  Fairfield,  Maine,  on  January  1,  1895.  A  branch  from  Ashland  Junction  to  Ashland,  43 
miles,  was  opened  the  following  year.  The  Bangor  &  Piscataquis  Railroad  Company  was  pur- 
chased in  April,  1899,  and  the  Van  Buren  Extension  of  the  Bangor  &  Aroostook  System  was 
opened  in  November  of  the  same  year. 

Further  additions  to  the  system  were  negotiated  for  in  1900,  and  by  1902  the  Aroostook 
Northern  Railroad,  the  Bangor  &  Katahdin  Iron  Works  Railway  and  the  Patten  &  Sherman  Rail- 
road had  been  included  in  it.  The  Fish  River  Railroad  also  was  opened  for  traffic  on  December 
15,  1902.  This  railroad  was  operated  under  lease  by  the  Bangor  &  Aroostook  Railroad  Company 
until  July,  1903,  when  the  latter  bought  outright  its  capital  stock  and  assumed  its  obligations. 

No  more  new  extensions  were  made  in  the  system  until  July,  1907,  when  the  company  pur- 
chased the  common  stocks  of  the  Northern  Maine  Seaport  Railroad  and  the  Schoodic  Stream  Rail- 
road. In  December,  1907,  the  Mcdford  Extension  of  the  system  was  opened  for  traffic;  in  October, 
1909,  the  St.  John  River  Extension  was  completed,  and  on  June  20,  1910,  the  Washburn  Exten- 
sion was  commercially  opened. 

PROPERTY 

On  June  30,  1912,  the  Bangor  &  Aroostook  System  operated  a  total  of  852.9  miles,  of  which 
(524.84  miles  were  main  track.  The  main  line  of  the  system,  155.13  miles,  extends  from  Brownville, 
to  Caribou,  Maine.  Many  important  branches  and  extensions  connect  with  this  main  line;  notably 
those  to  Greenville,  Oldtown,  Katahdin  Iron  Works,  Patten,  Ashland,  Fort  Kent,  St.  Francis,  Van 
Buren,  Limestone  and  Fort  Fairfield. 

CAPITALIZATION 

At  the  close  of  the  company's  fiscal  year,  June  30,  1912,  the  capital  account  of  the  road  stood  as 
follows : 

Common  stock $3,198,600 

Bonded  debt 22,798,000 

Equipment  trust  obligations 935,000 

Miscellaneous  funded  obligations 728,000 

Net  capitalization $27,659,600 

Net  capital  per  mile $43,834 

Average  miles  operated 630.52 

Net  income  to  net  capital 4.9% 

Fixed  charges  to  net  income 95.2% 

Margin  of  safety 4.8% 

[  71  ] 


The  above  net  capitalization,  $27,659,600,  is  that  of  the  railroad  proper,  and  brings  the  total 
net  capital  per  mile  of  road  owned  ontstanding  up  to  $43,834,  as  compared  with  the  Maine  Central's 
figure  of  $47,802.  The  Bangor  &  Aroostook  Railroad  has  no  leased  lines  and,  consequently,  no 
rental  charges. 

During  the  decade  ending  1912,  the  capital  stock  of  the  Bangor  &  Aroostook  Railroad  received 
three  important  additions:  one  in  1906  when  $500,000  of  new  stock  was  issued  for  the  purchase 
of  the  Fish  River  Railroad,  one  in  1908,  when  $960,000  of  new  stock  was  issued  to  purchase  the 
Northern  Maine  Seaport  Railroad  and  the  Schoodic  Stream  Railroad,  and  for  new  construction 
and  equipment,  and  another  during  1910-1911,  when  $688,600  was  issued  to  finance  the  St.  John 
River  Extension  and  the  Washburn  Extension. 

During  the  decade  the  bonded  debt  of  the  company  outstanding  per  mile  increased  more  than 
100%,  and  is  at  present  over  seven  times  the  outstanding  common  stock.  In  fact,  of  the  total  net 
capital  of  the  system,  over  80%  is  represented  by  this  account.  To  correspond  with  these  capital 
increases,  the  average  miles  under  operation  during  the  decade  ending  1912  increased  from  401  to 
631,  or  57%o- 

CHARACTER   OF   TRAFFIC 

Geographically,  the  Bangor  &  Aroostook  System  lies  in  one  of  the  richest  farming  and  hmiber 
districts  of  New  England.  The  largest  single  agricultural  commodity  which  it  transports  is  pota- 
toes; lumber,  in  the  group  of  forest  products,  being  a  close  second.  Fully  75%  of  the  total  traffic 
of  the  system  is  freight,  and  60%  of  this  freight  traffic  consists  of  potatoes  and  forest  products. 
In  fact,  the  earning  power  of  the  railroad  depends  to  no  small  degree  upon  the  potato  crop  of  Aroos- 
took County  and  a  successful  lumbering  season.  Below  is  a  statement,  in  tons,  of  commodities  car- 
ried in  the  years  1907  to  1912  inclusive: 

Products  of         1912  1911  1910  1909  1908  1907 

Tons         Tons         Tons         Tons         Tons         Tons 

Agriculture     .  467,.'384  420,635  364,870  435,492  259,693  451,196 

Animals  .    .    .  11,696  13,709  16,649  17,506  16,081  23,960 

Mines      .    .    .  222,244  185,486  185,621  139,249  175,850  128,886 

Forests    .    .    .  721,199  667,580  662,183  553,455  587,272  539,173 

Manufactures  285,196  294,262  313,018  253,094  270,164  218,629 

Miscellaneous  86,494  86,234  70,326  64,823  180,442  267,695 


Total  tons  .    .    1,794,413       1,667,906       1,612,667      1,463,619       1,489,502       1,629,539 

Although  the  passenger  business,  which  represents  less  than  25%  of  the  total  traffic  of  the  system, 
is  of  secondary  importance,  a  word  ought  to  be  said  about  it  at  this  time.  In  1907  more  passengers 
were  carried  than  at  any  time  in  the  history  of  the  road.  In  1908  and  1909  the  figures  dropjjed  off, 
but  recovered  sharply  in  1910.  In  the  fiscal  year  of  1912  a  new  high  record  was  set  when  over  778,000 
people  were  carried  over  the  company's  lines.  The  passenger  earnings  were  very  naturally  reflected 
in  the  number  of  passengers  carried,  since  the  average  rate  per  passenger  per  mile  has  remained  very 
nearly  stationary  since  1907. 

Below  are  some  of  the  more  salient  passenger  statistics  of  the  system  for  the  years  1907  to  1912 
inclusive: 

Year 

1907 

1908 

1909 

1910 

1911 

1912 

[  72  ] 


Total  passenger 

Total  passengers 

Average  revenue 

Average  rat 

revenue 

carried 

per  passenger 

per  mile 

$615,908 

701,536 

$.877 

$.0240 

597,993 

697,518 

.857 

.0238 

560,446 

627,775 

.892 

.0235 

638,143 

743,707 

.858 

.0237 

626,845 

760,825 

.823 

.0235 

631,264 

778,567 

.811 

.0226 

EARNINGS 

During  the  decade  ending  December  30,  1912,  the  earnings  of  the  Bangor  &  Aroostook  System 
increased  satisfactorily.  The  steady  and  substantial  growth  in  population,  manufactures  and  agri- 
culture, which  has  characterized  the  State  of  Maine,  should  be  reflected  in  increased  revenue  from 
year  to  year.  In  1890,  one  year  before  the  railroad  was  organized,  the  population  of  Aroostook 
County  was  about  45,000.  This  had  increased  to  75,000  by  the  census  of  1910,  while  the  assessed 
value  of  the  county,  which  was  $11,000,000  in  1890,  has  grown  to  over  $37,000,000  today. 

Following  is  a  comparative  statement  of  the  gross  and  net  earnings  of  the  system,  also  figured 
on  the  basis  of  miles  operated,  from  1907  to  1912  inclusive: 


Year 

Average  miles 

Gross 

Per  mile 

Net 

Per  mile 

operated 

earnings 

eammgs 

1907   .     . 

.      481.5 

$3,221,696 

$6,684 

$1,088,401 

$2,258 

1908  .    . 

.      500.7 

2,844,082 

5,677 

1,044,261 

2,084 

1909  .    . 

514.7 

2,916,815 

5,664 

1,127,649 

2,190 

1910  .    . 

.      529.9 

2,990,529 

5,642 

1,205,239 

2,274 

1911  .    . 

.      618.1 

3,173,111 

5.134 

1,169,339 

1,893 

1912  .    . 

630.5 

3,345,241 

5,301 

1,196,568 

1,897 

MAINTENANCE   AND   IMPROVEMENTS 

It  has  always  been  the  policy  of  the  company  to  keep  its  maintenance  charges  on  par  with  re- 
quirements, rather  than  impair  the  working  efliciency  of  the  road  by  permitting  continued  depre- 
ciation of  property.  Since  1905  maintenance  charges  have  consumed  an  average  of  27%  of  the 
gross  earnings  of  the  system,  as  compared  with  25%  for  the  Boston  &  Maine,  and  31%  for  the  Maine 
Central  Systems. 

Below  is  a  statement  of  the  amounts  spent  for  additions  and  betterments  from  1907  to  1912  in- 
clusive, and  also  the  accounts  against  which  they  were  charged : 

Year  Betterments  charged  to  Total 

Income  Capital 

1907 $99,625       $336,950  $436,575 

1908 1,338,635  1,338,635 

1909 276,695  276,695 

1910 496,076  496,076 

1911 104,910       663,872  768,782 

1912 383.405  383,405 

$204,535     $3,495,633     $3,700,168 
204,535 

$3,700,168 

Compiled  from  the  annual  reports  of  the  company,  we  find  the  following  statistics  concerning 
maintenance  of  way : 


Tons  of  steel  rails  laid 
(85  lbs.  per  yd.)  .  . 
New  ties  laid  .... 
Cubic  yards  ballast  .  . 
Steel  tie  plates  laid  .    . 


48 

2,386 

5,177 

2,669 

1,812 

2,707 

138,163 

175.526 

102,812 

79,767 

96,668 

93,634 

9,923 

88,598 

13,535 

63,208 

157,145 

3,000 

130,350 

75,000 

169,100 

141,210 

[  73  ] 


Another  item  of  importance  which  should  be  noted  is  the  replacing  of  wooden  culverts  with  those 
of  iron  and  concrete  construction.  Since  1907,  197  of  these  have  been  replaced,  150  with  iron  and  47 
with  concrete.  At  present  the  main  lines  of  the  system  are  equipped  practically  throughout  with 
iron  and  concrete  bridges,  while  613.03  miles  of  road  are  now  laid  with  85  and  70  pound  steel  rails, 
enabling  it  to  bear  heavier  traffic. 

DIVIDENDS 

The  Bangor  &  Aroostook  Railroad  began  paying  dividends  in  1904,  when  3%  was  declared  upon 
outstanding  capital  stock.  In  1905  the  dividend  was  increased  to  3J^%,  and  from  1906  to  1912 
4%  was  paid.  The  annual  surpluses  of  the  system  since  1907,  after  deducting  dividends  and  better- 
ment charges  were  as  follows: 


$124,825 

1910 

9,880 

1911 

43,075 

1912 

STATISTICS 

$85,018 
38,052 
64,387  * 


On  the  following  page  are  given  capitalization,  earnings  and  traffic  statistics  of  the  Bangor  & 
Aroostook  Railroad,  based  on  the  average  miles  operated,  for  the  year  1900,  and  for  the  years  1905  to 
1912  inclusive: 

*  Deficit. 


[  74  J 


BANGOR   &  AROOSTOOK  RAILROAD 


Fiscal 

Capital 

Funded 

Rentals 

Gross  and  net           Average  miles 

Extra  main 

year 

stock 

debt 

(a>  5% 

capital 

operated 

track 

1900 

$6,319 

$17,609 

$1,170 

$25,098 

364 

1905 

3,603 

27,037 

30,640 

428 

1906 

3.400 

33,919 

37,319 

455 

1907 

3,222 

36,602 

39,824 

482 

1908 

5,010 

40,008 

45,018 

501 

31 

1909 

4,874 

38.835 

43,709 

515 

31 

1910 

5.668 

42,443 

48,111 

530 

31 

1911 

5,175 

37.689 

42,864 

618 

31 

1912 

5.069 

38,765 

43,834 

631 

30 

Fiscal 

Gross 

Maintenance           Transportation           Net 

Other 

Fotal  net 

Fixed 

Surplus 
available 

year 

operating 

and  general        operating 

income 

income 

charges 

revenue 

Way 

Equipment 

expense              revenue 

for  dividends 

1900 

$3,373 

$609 

$243 

$1,189                $1,334 

$7 

$1,341 

$979 

$362 

1905 

5,041 

775 

486 

1,953                  1,827 

17 

1,844 

1,305 

539 

1906 

5,487 

860 

463 

2,072                  2,092 

29 

2,121 

1,462 

659 

1907 

6,684 

1,145 

714 

2,567                  2,258 

5 

2,263 

1,648 

615 

1908 

5,677 

856 

543 

2,193                  2,084 

2,084 

1.871 

213 

1909 

5,664 

937 

630 

1,907                  2,190 

2,190 

1,911 

279 

1910 

5,642 

843 

634 

1,890                  2,274 

326 

2,600 

1,937 

663 

1911 

5,134 

814 

596 

1,831                  1,893 

288 

2,181 

1,918 

263 

1912 

5,301 

873 

550 

1,981                   1,897 

238 

2,135 

2,034 

101 

Fiscal 

Divi- 

Other     Surplus      Operating  Total  main-   Conducting 

Fixed 

G 

ross             Net        Percent      Percent 

year 

dends 

charges 

expenses 

enance     transportation 

charges 

earnings       income    earned  on       freight 

to  income 

to  gross 

0  gross          to  gross 

to  gross 

to 

gross        to  net      capita 

to  all 

earnings       earnings         earnings 

earnings 

capital        capital        stock 

traffic 

1900 

$218        $144 

60.4% 

25.4             35.0% 

29.1% 

13.4%         5.3%        5.7% 

70% 

1905 

$127 

245 

167 

63.7 

25.0             38.7 

25.8 

16.4             6.C 

14.9 

76 

1906 

137 

354 

168 

61.8 

24.2             37.6 

26.6 

14.7             or 

18.1 

75 

1907 

149 

206 

260 

69.5 

31.1             38.4 

24.6 

16.9             5.7 

19.0 

78 

1908 

194 

19 

68.7 

30.1             38.6 

32.8 

12.6             4.7 

4.3 

73 

1909 

195 

84 

63.4 

29.7             33.7 

33.7 

12.9             5.0 

5.9 

72 

1910 

196 

305 

162 

59.7 

24.2            35.5 

34.3 

11 

7             5.4 

11.6 

73 

1911 

201 

62 

63.1 

27.5            35.6 

37.4 

11.9            5.0 

5.1 

75 

1912 

203 

102* 

64.2 

26.9            37.3 

38.3 

12.1            4.9 

2.0 

76 

Fiscal 

Train 

Maintenance 

Conducting        Train            Rates 

per  mile 

Freight 

Train  load 

Passenger, 

year 

mile 

per  re 

venue 

transportation       mile 

density 

rei'enue 

freight  and 

earnings 

train  mjle 

per  revenue       earnings      Freight 

Passenger 

tons 

company 

(gross) 

Way 

Equipment      train  m 

le           (net) 

cars 

1900 

157,299 

116 

1,815 
3,360 

1905 

$1.61 

$.248 

$.155 

$ 

623 

'$ 

584         $.0122 

$.0246 

284,955 

183 

1906 

1.72 

.290 

.146 

631 

653           .0119 

.0248 

321,285 

191 

3,366 

1907 

1.92 

.344 

.214 

770 

592          .0119 

.0240 

408,165 

221 

4,561 

1908 

1.95 

.319 

.202 

817 

612          .0116 

.0238 

319,363 

211 

5,528 

1909 

2.21 

.379 

.254 

770 

807          .0117 

.0235 

352,384 

237 

5,576 

1910 

2.18 

.325 

.244 

728 

883          .0115 

.0237 

360,825 

259 

5.576 

1911 

2.03 

.322 

.236 

725 

737          .0116 

.0235 

331,377 

255 

5.582 

1912 

2.01 

.332 

.208 

753 

717          .0112 

.0226 

357,187 

255 

5,569 

634  miles  are  covered  by  first  mortgages. 

*  Deficit. 

[75] 

BOND   DESCRIPTIONS 


Following  are  descriptions  of   the  bond  issues  of   the  Bangor  & 

Aroostook  System,  together  with  the  bases  upon  which  they 

have  sold  during  the  decade  ending  December  31,  191'2: 


BANGOR   &  AROOSTOOK  RAILROAD   COMPANY 

First  Mortgage  Gold  5s 

Dated  January  1,  1893  Maturing  January  1,  1943 

Interest  payable  January  1  and  July  1  at  Guaranty  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $3,360,000  Outstanding  $3,360,000 

Per  mile  .    .  15,840 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  212.17  miles  of  road  as  follows:   Brown- 

viUe  to  Caribou,  154.95  miles;  Ashland  Junction  to  Ashland,  43.92  miles;  Fort  Fairfield  Junc- 
tion to  Fort  Fairfield,  13.30  miles,  all  in  Maine.  The  bonds  are  further  secured  by  a  first 
mortgage  on  all  the  equipment  of  the  road  and  future  acquisitions. 

Equity:  These  bonds  are  prior  in  lien  to  $112,000  Bangor  &  Aroostook  Second  5s  of  1945,  and  to  the 

Bangor  &  Aroostook  Consohdated  and  Refunding  4s  of  195],  a  suflScient  number  of  the  latter 
being  reserved  to  refund  or  purchase  this  issue. 

Trustee :  Guaranty  Trust  Company,  New  York. 

These  bonds  were  quoted  in  1909  on  a  4.35  basis  (bid) 

1910  4.78  (bid) 

1911  4.60  (bid) 
December,  1912  4.55  (bid) 


These  bonds  are  considered  i 


investment  for  savings  banks  in  Maine  and  Massachusetts. 


BANGOR   &  AROOSTOOK  RAILROAD   COMPANY 

Piscataquis  Division 

First  Mortgage  Gold  5s 

Dated  April  1,  1899  Maturing  January  I,  1943 

Interest  payable  April  1  and  October  1  at  Guaranty  Trust  Company,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 


Authorized  $1,500,000 
Security : 


Outstanding  $1,500,000 
Per  mile  .    .  19,730 


Equity : 


The  above  bonds  are  secured  by  a  first  mortgage  on  76  miles  of  road  from  Oldtown  to  Green- 
ville, Me.  They  are  further  secured  by  a  first  mortgage  on  the  equipment  of  the  line  and  all 
future  acquisitions. 

These  bonds  are  prior  in  lien  to  the  Bangor  &  Aroostook  Consolidated  Refunding  4s  of  1951, 
a  suflScient  number  of  the  latter  being  reserved  to  refund  or  purchase  this  issue. 


These  bonds  were  quoted  in  1909  on  a  4.65  basis  (bid) 

1910  4.58  to  5.35  (bid) 

1911  4.80  (bid) 
December,  1912  4.75  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Massachusetts. 

[  78] 


BANGOR   &   AROOSTOOK   RAILROAD    COMPANY 

Van  Buren  Extension 

First  Mortgage  Gold  5s 

Dated  April  1,  1809  Maturing  January  1,  1943 

Interest  payable  April  1  and  October  1  at  Guaranty  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $500,000  Outstanding  $500,000 

Per  mile  .    .       15,100 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  33.11  miles  from  Caribou  to  Van  Buren, 

Me.     They  are  further  secured  by  a  first  mortgage  on  the  equipment  of  the  line  and  all 
future  acquisitions. 

Equity:  These  bonds  are  prior  in  lien  to  the  Bangor  &  Aroostook  Consohdated  Refunding  4s  of  1951, 

a  sufBcient  number  of  the  latter  being  reserved  to  refund  or  purchase  this  issue. 

Trustee:  Guaranty  Trust  Company,  New  York. 

These  bonds  were  quoted  in  1909  on  a  4.70  basis  (bid) 

1910  4.70  to  5.35  (bid) 

1911  4.87  (bid) 
December,  1912  4.87  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Massachusetts. 


BANGOR   &  AROOSTOOK  RAILROAD   COMPANY 
Medford  Extension 
First  Mortgage  Gold  5s 

Dated  May  1,  1907  Maturing  May  1,  1937 

Interest  payable  May  1  and  November  1  at  Brown  Bros.  &  Company,  New  York  and  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $1,000,000  Outstanding  $1,000,000 

Per  mile  .    .  35,780 

Security:  The  above  bonds  are  a  first  mortgage  on  27.95  miles  from  South  Lagrange  to  Packard's,  Me., 

at  a  point  in  connection  with  the  main  line  of  the  Bangor  &  Aroostook  Railroad  near  Seboois 
Lake.    They  are  further  secured  by  any  future  acquisitions. 

Trustee:  The  United  States  Trust  Company,  New  York. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Massachusetts. 

[79  ] 


AROOSTOOK   NORTHERN   RAILROAD   COMPANY 

First  Mortgage  Gold  5s 

Dated  October  1,  1897  Maturing  October  1,  1947 

Interest  payable  April  1  and  October  1  at  Guaranty  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $^225,000  Outstanding  $225,000 

Per  mile  .    .       14,310 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  Aroostook  Northern  Railroad  Company's 

line  from  Caribou  to  Limestone,  Me.,  15.72  miles.  They  are  further  secured  by  a  first 
mortgage  on  the  equipment  of  the  line  and  future  acquisitions. 

These  bonds  were  ASSUMED  by  the  Bangor  &  Aroostook  Railroad  Company.  They  are 
prior  in  lien  to  the  Bangor  &  Aroostook  Consolidated  Refunding  4s  of  1951,  a  sufficient  num- 
ber of  the  latter  being  reserved  to  refund  or  purchase  this  issue. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  Aroostook  Northern  Railroad  Company  was  chartered  under  the  laws  of  the  State  of 
Maine  in  July,  1897.  It  was  commercially  opened  for  service  in  December  of  that  year.  From 
November  27,  1897,  it  was  leased  for  999  years  to  the  Bangor  &  Aroostook  Railroad  Company  at  a 
yearly  rental  equal  to  the  interest  on  the  outstanding  bonds  and  $51  for  organization  expen.ses. 
On  July  1,  1901,  it  was  consolidated  into  the  Bangor  &  Aroostook  System. 

These  bonds  were  quoted  in  1909  on  a  4.C0  basis  (bid) 
1910  4.95  (bid) 

These  bonds  are  considered  a  legal  investment  for  sa\'ings  banks  in  Maine  and  Massachusetts. 

NORTHERN   MAINE   SEAPORT   RAILROAD   COMPANY 
Railroad  and  Terminal  First  Mortgage  Gold  5s 

Dated  April  1,  1905  Maturing  April  1,  1935 

Interest  j)ayable  April  1  and  October  1  at  United  States  Mortgage  &  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $5,000,000  Outstanding  $4,720,000 

Per  mile  .    .  82,800 

Provisions  of     $280,000  of  these  bonds  are  reserved  for  extensions  and  equipment  under  the  restriction  of  the 
issue:  mortgage. 

Security:  The  above  bonds  are  a  first  mortgage  on  the  Northern  Maine  Seaport  Railroad  Company's 

lines,  totalling  57.01  miles,  as  follows:  from  South  Lagrange  to  Searsport,  Me.,  and  from  Cape 
Jellison  Junction  to  Wharf,  and  Northern  Maine  Junction.  These  bonds  are  further  secured 
by  a  first  mortgage  on  the  equipment  of  the  line  and  future  acquisitions. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Bangor  & 
Aroostook  Railroad  Company,  by  endorsement. 

Trustee:  United  States  Mortgage  &  Trust  Company,  New  York. 

[  80  i 


The  Northern  Maine  Seaport  Railroad  Company  was  chartered  under  the  laws  of  the  State  of 
Maine,  December  1,  1904,  and  the  road  was  commercially  opened  for  service  in  November,  1905. 
From  November  21,  1905,  it  was  leased  for  999  years  by  the  Bangor  &  Aroostook  Railroad  Company, 
which  also  owns  the  entire  capital  stock,  at  an  annual  rental  which  includes  interest  on  the  bonds 
outstanding  and  expenses  of  maintenance  and  operation. 

These  bonds  were  quoted  in  1909  on  a  4.72  basis  (bid) 

1910  4.95 

1911  4.75 
December,  1912  5.00 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Massachusetts. 


BANGOR  &   AROOSTOOK  RAILROAD   COMPANY 
Consolidated  Refunding  Gold  4s 

Dated  July  1,  1901  Maturing  July  1,  1951 

Interest  jjayable  January  1  and  July  1  at  Brown  Brothers,  New  York,  and  Lee,  Higginson  &  Co.,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registcrable. 

Authorized  $20,000,000  Outstanding  $7,931,000 

Per  mile  .    .  18,570 

Provisions  of      The  indenture  provides  that  $12,500,000  of  the  authorized  amount  of  this  issue  shall  be  re- 
issue: served  to  purchase  or  refund  underlying  securities,  $3,000,000  shall  be  reserved  to  pay  the  cost 
of  acquiring  additional  property  to  the  existing  railroad  and  for  providing  improvements 
upon  and  equipment  of  those  roads  up  to  $250,000  per  annum,  and  $4,500,000  shall  be  re- 
served for  extensions  to  the  existing  railroad  at  not  exceeding  $25,000  a  mile. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  426.87  miles  of  railroad  as  follows: 

(1)  A  first  mortgage  on  99.40  miles  all  in  Maine;  (2)  a  second  mortgage  on  124.83  miles;  (3) 
a  third  mortgage  on  212.17  miles. 

Equity:  These   bonds    are   subject   to  the    following   issues:    $3,360,000  First  5s  of    1943;  $112,000 

Second  5s  of  1945;  $1,500,000  Piscataquis  Division  First  5s  of  1943;  $500,000  Van  Buren 
Extension  First  5s  of  1943;  and  $225,000  Aroostook  Northern  First  5s  of  1947.  As  these 
issues  mature  they  may  be  refunded  by  these  bonds. 

Trustee:  Old  Colony  Trust  Company,  Boston. 

These  bonds  were  quoted  in  1906  on  a  4.27  basis 

1908  5.15 

1909  4.95 

1910  5.20 

1911  5.20 
December,  1912     5.20 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 

[  81  ] 


BANGOR   &   AROOSTOOK   RAILROAD    COMPANY 
Second  Mortgage  Gold  5s 

Dated  February  27,  1895  Maturing  July  1,  1945 

Interest  payable  January  1  and  July  1  at  Guaranty  Trust  Company,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Authorized  $1,050,000 


Outstanding  $112,000 
Per  mile  .    .  530 


Provisions  of      Of  the  total  amount  authorized,  $112,000  are  outstanding  as  above,  and  the  balance,  $938,000, 
issue:  have  been  purchased  by  the  trustee  of  the  Bangor  &  Aroostook  Consohdated  Refunding 

4s  of  1951. 

Security :  The  above  bonds  are  secured  by  a  second  mortgage  on  the  same  property  covered  by  the  first 

lien  of  the  First  Mortgage  Gold  5s  of  1943,  212.7  miles.    (For  description  see  that  issue.) 

Equity:  The  above  bonds  are  subject  to  the  $3,360,000  First  Mortgage  Gold  5s  of  1943.     They  are 

prior  in  lien  to  the  Consolidated  Refunding  Gold  4s  of  1951,  a  sufficient  number  of  which 
have  been  reserved  to  refund  or  purchase  this  issue. 

Trustee :  United  States  Mortgage  &  Trust  Company,  New  York. 

These  bonds  were  quoted  in  1909  on  a  4.87  basis  (bid) 
1910  5.00  (bid) 


These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


BANGOR   &  AROOSTOOK  RAILROAD    COMPANY 
Washburn  Extension  First  5s 

Dated  August  1,  1909  Maturing  August  1,  1939 

Interest  payable  February  1  and  August  1  at  Central  Trust  Company,  New  York,  and  at  Boston. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable, 
Authorized  $1,650,000 


Outstanding  $1,650,000 
Per  mile  .    .  30,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Ashland  Branch  of  the  Bangor  & 

Aroostook  Railroad  from  Squa  Pan  to  Stockholm,  and  the  branch  from  Mapleton  to  Presque 
Isle,  all  in  Maine,  54.98  miles. 

Trustee:  Central  Trust  Company,  New  York. 

These  bonds  were  quoted  in  1910  on  a  5.10  basis  (bid) 

1911  5.25 

1912  5.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 

[82] 


BANGOR   &  AROOSTOOK   RAILROAD   COMPANY 
St.  John  River  Extension  First  Mortgage  5s 

Dated  August  1,  1909  Maturing  August  1,  1939 

Interest  payable  February  1  and  August  1  at  Central  Trust  Company,  New  York,  and  at  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $1,800,000  Outstanding  $1,800,000 

Per  mile  .    .  30,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  road  from  Van  Buren  by  way  of  Grand 

Isle  and  Fort  Kent  to  St.  Francis,  60  miles,  all  in  Maine.    It  is  also  a  first  mortgage  on  the 
yards,  buildings,  turn  tables  and  equipment  of  the  line. 

Trustee:  Central  Trust  Company,  New  York. 

These  first  mortgage  bonds  are  a  direct  obHgation  of  the  Bangor  &  Aroostook  Railroad  Com- 
pany. The  road  is  built  almost  entirely  with  70-pound  rails  and  steel  bridges,  and  is  opening  up 
a  great  agricultural  and  lumber  producing  country,  which  before  this  tinie  had  practically  no 
transportation  facilities. 

These  bonds  were  quoted  in  December,  1912,  on  a  5.35  basis 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


AROOSTOOK   COUNTY 
Gold  41 -s 

Dated  July  1,  1895  Maturing  .July  1,  1015 

Interest  payable  January  1  and  July  1  at  the  office  of  the  Bangor  &  Aroostook 

Railroad  Company,  Bangor. 

Coupon  bonds  of  $1,000 
Authorized  $228,000  Outstanding  $228,000 

Security :  These  bonds  were  issued  by  Aroostook  County,  Me.,  in  aid  of  the  construction  of  the  Bangor 

&  Aroostook  Railroad.    They  are  secured  by  a  deposit  with  the  trustee  of  a  like  amount  of 
its  Consolidated  Refunding  4s  of  1951. 

These  bonds  have  been  ASSUMED  by  the  Bangor  &  Aroostook  Railroad  Company. 

Trustee:  Old  Colony  Trust  Company,  Boston. 


These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 

[83] 


BANGOR  &  AROOSTOOK   RAILROAD 

5%  Equipment  Trust  Certificates 
Series  "  C  " 

Dated  June  1,  1906  Maturing  $45,000  each 

December  1  and  June  1 
to  June  1,  1916 

Interest  payable  June  1  and  December  1  at  Brown  Brothers  &  Company,  New  York  and  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $900,000  Outstanding  $360,000 

Provisions  of      Of  the  $900,000  authorized,  $360,000  are  outstanding  as  above,  and  $540,000  had  been  re- 
issue: deemed  to  June  1,  1912. 

Security:  The  above  certificates  were  issued  by  the  trustee  and  are  secured  by  510  box  cars  and  635 

flat  cars  costing  $1,000,903.     The  title  to  the  equipment  does  not  revert  to  the  company 
until  all  these  obligations  have  been  paid. 

The  certificates  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Bangor  & 
Aroostook  Railroad  Company. 

Trustee:  Pennsylvania  Company  for  Insurances  on  Lives  and  Granting  Annuities,  Philadelphia. 

These  certificates  were  offered  in  1906  on  a  4.80  basis 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


BANGOR  &  AROOSTOOK   RAILROAD 

5%  Equipment  Trust  Certificates 
Series  "D" 

Dated  April  1,  1907  Maturing  $45,000  each 

April  1  and  October  1 
to  April  1,  1917 
Interest  payable  April  1  and  October  1  at  Brown  Brothers  &  Company,  New  York  and  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $900,000  Outstanding  $405,000 

Provisions  of     Of  the  total  amount  authorized,  $405,000  are  outstanding  as  above  and  $495,000  had  been 
issue:  redeemed  to  October  1,  1912. 

Security:  The  above  certificates  were  issued  by  the  trustee,  and  are  secured  by  700  box  cars,  300  flat 

cars,  40  stock  cars  and  6  caboose  cars  costing  $1,000,000.    The  title  to  this  equipment  does 
not  revert  to  the  railroad  company  until  all  these  obligations  have  been  paid. 

The  certificates  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Bangor  & 
Aroostook  Railroad  Company. 

Trustee:  Pennsylvania  Company  for  Insurances  on  Lives  and  Granting  Annuities,  Philadelphia. 

These  certificates  were  offered  in  1907  on  a  5.50  basis. 

The.sc  bonds  arc  considered  a  legal  investment  for  savings  banks  in  Maine. 

[84] 


BANGOR  &  AROOSTOOK   RAILROAD 

5%  Equipment  Trust  Certificates 
Series  "  E  " 

Dated  October  1,  1911  Maturing  October  1,  lObZ-lOlG 

Interest  payable  April  1  and  October  1  at  Brown  Brothers  &  Company,  New  York  and  Boston. 

Coupon  bonds  of  $1,000,  registcrable  as  to  principal. 
Issued  $125,000  Outstanding  $125,000 

Security:  The  above  certificates  were  issued  by  the  trustee  and  are  secured  by  2  gas  electric  motor  cars 

and  6  locomotives.     The  title  to  this  equipment  does  not  revert  to  the  company  until  all 
these  obligations  have  been  paid. 

The  certificates  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Bangor  & 
Aroostook  Railroad  Company. 

Trustee:  Pennsylvania  Company  for  Insurances  on  Lives  and  Granting  Annuities,  Philadelphia. 

These  bonds  are  considered  legal  investments  for  savings  banks  in  Maine. 


[  85  ] 


BOSTON  &  MAINE  RAILROAD  COMPANY 


BOSTON  &  MAINE  RAILROAD  COMPANY 


HISTORY 

The  Boston  &  Maine  Railroad  was  incorporated  in  1835  under  the  laws  of  the  State  of  New 
Hampshire,  in  1841  under  the  laws  of  the  Commonwealth  of  Massachusetts,  and  in  1843  under  the 
laws  of  the  State  of  Maine,  as  the  result  of  a  consolidation,  January  1,  1842,  of  the  Boston  &  Portland 
Railroad  of  Massachusetts,  the  Boston  &  Maine  Railroad  of  New  Hampshire  and  the  Maine,  New 
Hampshire  &  Massachusetts  Railroad  of  Maine.  Three  years  later  the  Boston  &  Maine  Extension 
Railroad  was  acquired. 

The  present  Boston  &  Maine  System  represents  the  consolidation,  on  the  9th  of  May,  1890,  of 
the  Boston  &  Maine  Railroad,  the  Eastern  Railroad  Company  and  the  Portsmouth,  Great  Falls  & 
Conway  Railroad  Company.  Just  prior  to  this,  control  of  the  Boston  &  Lowell  Railroad,  the  Nashua 
&  Lowell  Railroad  and  several  smaller  lines  was  acquired  by  lease.  The  Concord  &  Montreal 
Railroad  and  its  dependencies  were  leased  to  the  Boston  &  Maine  for  91  years  from  April  1,  1895. 
In  1899  it  absorbed  the  Eastern  Railroad  of  New  Hampshire  and  the  Portsmouth  &  Dover  Railroad; 
in  1900,  the  Portland,  Saco  &  Portsmouth  Railroad  and  the  Portland  &  Rochester  Railroad. 

In  that  same  year  (1900)  the  Boston  &  Maine  began  to  operate,  under  a  99-year  lease,  the 
Fitchburg  Railroad  and  leased  lines,  aggregating  457  miles  of  road,  and  in  1901  the  company  pur- 
chased the  capital  stock  of  the  Central  Massachusetts  Railroad.  In  addition  to  this  the  Boston  & 
Maine  Railroad  owns  $5,043,696  par  value,  or  51%,  of  the  $9,979,700  capital  stock  of  the  Maine 
Central  Railroad,  which  operated,  June  30,  1912,  1,204.08  miles  of  road. 

In  June,  1911,  its  company  purchased  the  property  of  the  Worcester,  Nashua  &  Rochester 
Railroad  Company,  heretofore  operated  under  a  lease,  and  assumed  its  funded  obligations.  By 
June  30,  1912,  the  Boston  &  Maine  controlled  30,630  of  the  30,644  shares  of  the  above  company 
outstanding.  On  July  1,  1911,  the  company  sold  its  property  in  Portland  and  Westbrook,  Maine, 
to  the  Portland  Terminal  Company  for  $2,581,568. 

PROPERTY 

The  extent  of  the  system's  mileage  has  been  indicated  aljove.  In  1912  a  total  of  2,291.02  miles 
of  main  track  were  operated,  of  which  46.80  miles  were  electric  street  railways.  Of  the  2,244.22  miles 
of  steam  railway  operated,  707.33  miles  were  owned  in  fee  and  1,536.89  miles  were  lines  of  leased 
roads. 

The  bulk  of  the  system  lies  in  Massachusetts  and  New  Hampshire,  about  one-half  of  it  in  the 
latter  State.  Of  the  total  mileage,  589.11  miles,  or  about  22%  of  the  entire  system,  is  double  track. 
The  main  lines  extend  from  Boston,  Massachusetts,  to  Portland,  Maine  (via  two  divisions);  Spring- 
field, Massachusetts;  Sherbrooke,  Canada;  Rotterdam  Junction  and  Troy,  New  York.  These  main 
lines  are  connected  at  the  above  points  by  many  branches. 


[  89] 


CAPITALIZATION 

On  June  30,  1912,  the  capital  account  of  the  Boston  &  Maine  Railroad  stood  as  follows: 

Preferred  stock      $3,149,800 

Common  stock 39,505,390 

Total  stock $42,655,190 

Bonded  debt 43,849,000* 

Nominal  capital $86,504,190 

Rentals  capitalized  @  5% 103,540,000 

Gross  capitalization      $190,044,190 

Securities  owned 12,500,685 

Net  capitalization $177,543,505 

Net  capital  per  mile  operated $79,119 

Average  miles  operated ....  2,244.22 

Net  income  to  net  capital      ....  6.6% 

Fixed  charges  to  net  income 89.0% 

Margin  of  safety  11.0% 

As  may  be  seen  by  the  foregoing,  the  capitalization  of  the  Boston  &  Maine  proper,  excluding 
the  item  of  rentals,  amounted  in  1912  to  $86,500,000,  or  an  average  of  $122,348  per  mile  owned 
in  fee.  In  point  of  fact  the  Boston  &  Maine  System  is  a  collection  of  small  properties,  most  of 
which  have  been  gained  by  leases  and  moulded  together  into  an  operating  unit.  The  rental  payments 
for  the  fiscal  year  of  1912  amounted  to  $5,176,879  —  almost  three  times  the  interest  on  its  nominal 
debt.  This  charge,  capitalized  at  5%,  brings  the  total  gross  capitalization  up  to  $190,000,000  or 
about  $85,000  per  mile  of  road  operated. 

The  margin  of  safety  figure  is  of  utmost  importance  to  security  holders.  Of  the  fixed  charges, 
which  used  up  89%  of  the  total  net  income,  fully  one-half  are  represented  by  rentals  paid,  which 
include  fixed  dividends  on  the  stocks  of  the  leased  roads,  and  guaranteed  interest  on  their  out- 
standing funded  debts. 

On  account  of  the  increased  charge  for  the  use  of  freight  equipment  agreed  upon  by  the 
American  Railway  As.sociation,  efifective  January  1,  1913,  the  stockholders  of  the  company  ap- 
proved on  October  7,  1912,  an  issue  of  $7,500,000  Twenty-year  4^2%  Bonds  to  purchase  new 
equipment,  pay  for  additional  improvements  which  should  be  capitalized,  and  refund  First 
Mortgage  Bonds  of  the  Worcester,  Nashua  &  Rochester  Railroad  Company,  maturing  January  1, 
1913,  also  an  issue  of  106,637  additional  shares  of  common  stock.  In  February,  1913,  the  approval 
of  the  Railroad  Commissioners  of  Massachusetts  was  granted  for  both  issues,  and  pending  a  fa\or- 
able  market,  it  is  expected  that  the  bonds  will  be  offered  to  the  public. 


CHARACTER   OF   TRAFFIC 

Through  the  growth  in  population  and  wealth  of  the  cities  which  it  serves,  the  traflic  of  the 
system  has  risen  steadily.  To  be  sure,  this  growth  of  traffic  received  a  temporary  set  back  during 
the  two  years  which  followed  the  disturbances  of  1907.  This  was  evidenced  by  the  traffic  records 
of  the  system  during  the  years  1908  and  1909.     By  1910,  however,  the  manufacturing  and  other 

*  In  addition,  the  company  had  $12,000,000  notes  payable  on  June  30,  1912. 
[  90  ] 


coininercial  industries  of  New  England  that  are  served  by  the  company's  lines  were  more  than 
ordinarily  active  and  prosperous.  In  that  year  the  gi'oss  volume  of  tons  carried  increased  nearly 
2,500,000  and  still  further  increases  have  been  recorded  since,  as  is  shown  in  the  table  below: 

Products  of  1912  1911  1910  1909  1908 

Tons  Tons  Tons  Tons         Tong 

Agriculture 3,719,467  3,292,104  2,979,023  3,080,786  2,412,366 

Animals 1,004,927  929,971  1,044,721  1,050,966  961,184 

Mines 6,258,516  5,813,916  5,966,008  5,300,839  6,022,560 

Forests      2,995,216  3,149,176  3,334,577  2,731,885  2,767,554 

Manufactures  ....  4,444,828  4,305,846  4,659,081  3,801,572  3,479,566 

Miscellaneous  ....  5,272,033  5,573,288  4,832,118  4,448,266  4,492,623 

Total  tons 23,694,987       23,064,301         22,815,528      20,414,314      20,135,853 

Not  only  did  the  volume  of  freight  carried  increase  markedly  during  1910  and  1911,  but  the 
volume  of  passenger  business  increased  as  well.  Nearly  5,000,000  more  people  travelled  during 
1910  than  in  1909,  and  over  1,300,000  more  used  the  company's  lines  in  1911  than  in  1910,  while  the 
gain  in  1912  over  1911  was  about  620,000.  This  significant  increase  was  due  very  considerably  to 
the  influx  of  vacationists  to  northern  New  England.  From  year  to  year  the  problem  of  transporting 
these  summer  tourists  has  become  one  of  growing  importance. 

In  1912  the  passenger  business  of  the  system  amounted  to  $15,693,675,  or  33%  of  gross 
earnings  from  operation.  This  figure  is  over  $2,200,000  greater  than  in  1908,  an  increase  of  16%. 
Below  is  a  comparative  statement  of  the  salient  passenger  statistics  of  the  system  for  the  years 
1908  to  1912  inclusive: 


1908 
1909 
1910 
1911 
1912 


Since  the  addition  of  the  Fitchburg  Railroad  in  1900,  the  mileage  of  the  system  has  increased 
but  slightly,  while  gross  earnings  have  increased]  more  than  107%.  The  gross  earnings  per  mile 
have  increased  from  $12,643  in  1900,  to  $20,495  in  1912.  Gross  earnings  in  1912  were  the  best 
the  company  has  yet  shown. 

The  net  earnings  of  the  system,  however,  have  been  erratic.  Having  increased  from  over 
$6,500,000  in  1900  to  over  $10,000,000  in  1907,  they  received  a  set  back  in  1908.  The  business  de- 
pression which  followed  the  panic  of  1907  made  itself  felt  upon  the  Boston  &  Maine.  It  was  found 
impossible  to  bring  the  scale  of  operating  expenses  at  once  into  accord  with  the  reduced  income; 
hence,  a  considerable  reduction  in  net  earnings.  In  1910  net  earnings  had  increased  to  over 
$12,000,000,  but  the  fiscal  year  of  1911  showed  a  considerable  falling  off  from  that  high  figure. 
This  was  due  primarily  to  large  increases  in  the  wage  account  of  the  company.  Had  the  company 
been  able  to  maintain  the  wage  item  at  the  1910  figures,  the  net  revenue  applicable  to  dividends 
would  have  been  increased  by  $2,468,457.* 

Gross  and  net  earnings  are  shown  in  detail  by  the  following  table  for  the  year  1900  and  for  the 
years  1906  to  1912  inclusive: 

*  Seventy-eighth  Annual  Report  of  the  Boston  &  Maine  Railroad  for  the  year  ending  June  30,  1911,  page  7. 

[  91  ] 


Total  passengers               Total  passenger 

Average  revenue 

Average  rate 

carried                                revenue 

per  passenger 

per  mile 

43,214,995             $13,537,387 

$.313 

$.0171 

42,836,742               13,451,751 

.314 

.0170 

47,365,852               14,655,065 

.309 

.0169 

48,666,086               15,524,431 

.319 

.0180 

49,284,076              15,693,675 

.318 

.0178 

EARNINGS 

Year  Average  miles 

operated 

1900 1,752 

1906 2,287 

1907 2,288 

1908 2,242 

1909 2,243 

1910 2,243 

1911 2,243 

1912 2,243 


Gross 

Per  mile 

Net 

Per  mile 

earnings 

earnings 

$22,148,602 

$12,643 

$6,543,584 

$3,736 

39,214,202 

17,146 

9,860,834 

4,311 

41,125,256 

17,974 

10,156,859 

4,439 

38,990,749 

17,391 

9,036,552 

4,301 

39,528,698 

17,623 

11,264,843 

5,024 

43,357,175 

19,330 

12,020,851 

5,359 

44,815,084 

19,979 

9,066,381 

4,309 

45,990,304 

20.495 

10,903,008 

4,868 

MAINTENANCE 

In  spite  of  the  fact  that  the  Boston  &  Maine  was  facing  an  increase  of  wages  during  the  fiscal 
year  of  1911,  the  management  decided  to  sacrifice  surphis  earnings  still  further  by  lifting  the  stand- 
ard of  upkeep  above  that  which  formerly  prevailed.  Never,  before  1910,  had  $10,000,000  been  spent 
in  any  single  fiscal  year  on  the  Boston  &  Maine's  maintenance.  Yet  on  top  of  this  record-breaking 
sum  spent  in  that  year,  there  was  a  still  further  increase  in  1911  of  over  $1,600,000,  or  15%,  as  is 
shown  by  the  following  table: 

Year  Maintenance  Maintenance  Total  Per  mile 

of  way  of  equipment  maintenance 

1908 $4,756,446  $4,760,812  $9,517,258  $4,159 

1909 4,251,565  4,730,778  8,982,343  3,924 

1910 5,253,611  5,446,734  10,700,345  4,770 

1911 6,066,120  6,248,435  12,314,555  5,490 

1912 5,823,545  6,411,596  12,235,141  5,452 


ADDITIONS  AND   BETTERMENTS 

More  remarkable  than  the  maintenance  record  of  the  Boston  &  Maine  for  the  last  four 
years,  has  been  the  showing  made  in  additions  and  betterments.  Since  1908  $27,700,000  has 
been  spent  in  this  way  and  more  than  half  of  it  has  been  used  for  purchasing  the  latest  kinds  of 
equipment.  In  1909  the  amount  expended  was  comparatively  small.  1910  showed  twice  as  large 
an  outlay,  while  during  1911  nearly  five  times  the  amount  spent  in  1909  was  thus  expended. 
Below  is  a  statement  of  the  amount  spent  in  additions  and  betterments  from  1908  to  1912 
inclusive: 


Year  Equipment 

1908 $4,815,831 

1909 1,115,291 

1910 2,535,235 

1911 6,206,922 

1912 996,102 


Other 

Total 

Net  expenditure 

betterments 

betterments 

for  betterments 

$1,303,046 

$6,118,877 

$5,948,394 

1,124,454 

2,239,745 

1,582,691 

2,362,105 

4,897,340 

4,770,394 

4,786.937 

10,993,859 

10,993,859 

2,354,878 

3,350,980 

957,445 

$27,700,304 

$24,258,783 

Below  is  a  statement  of  the  various  accounts  against  which  the  above-named  iHiterinents  were 
charged  during  the  years  in  question: 

[  92  ] 


Vear  Charged  to  Income  Net  expenditure 

Capital  Leased  roads  for  betterments 

1908 $5,807,857  ....  $80,536  $5,948,39-4 

1909 949,308  $592,284  41,099  1,582,691 

1910 3,108,437  1,469,116  198,841  4,776,394 

1911 8,511,737  2,482,122  ...  10,993,859 

1912 501,698  1,459,142  ....  957,445 

$17,935,647  $6,002,664  $320,470  $24,258,783 

As  will  be  seen  by  tlie  foregoing,  about  75%  of  the  total  net  expenditure  for  betterments  was 
charged  to  the  cajiital  account.  These  charges  appear  on  the  balance  sheets  of  the  railroad  as  follows : 
In  1908,  to  offset  the  amount  charged  to  capital,  notes  payable  were  increased  over  $7,000,000. 
In  1909,  $11,000,000  in  notes  payable  were  wiped  out  by  a  $i2,000,000  increase  in  the  funded  debt; 
the  difference.  $1,000,000.  going  into  betterments.  In  1910,  notes  payal)le  were  increased  l)y  $4,()()0,- 
000  to  offset  the  above-noted  improvements  for  that  year.  In  1911,  tlu>  capital  stock  of  the  com])any 
was  increased  nearly  $10,000,000  and  notes  payable  nearly  $2,000,000,  the  two  offsetting  in  part  the 
purchase  of  the  Worcester,  Nashua  &  Rochester  Railroad  and  the  improvements  charged  to  the  capi- 
tal account  for  the  year. 

Early  in  May,  1911,  the  expensive  task  of  electrifying  the  Hoosac  Tunnel  was  completed.  About 
22  miles,  measured  as  single  track,  were  thus  equipped,  thereby  measurably  increasing  the  traffic 
capacity  of  the  Fitchburg  Division,  which,  under  old  conditions,  had  reached  its  limit.  A  well- 
equipped  round  house  and  repair  shop  were  included  in  this  electrification. 

The  work  of  eliminating  highway  grade  crossings  has  been  going  on  steadily  for  the  last  few  years 
and  is  proving  an  expensive,  although  necessary,  task.  During  1912,  $630,812  was  thus  expended. 
The  total  net  expenditure  for  this  work  on  the  Boston  &  Maine  Railroad  and  K-ased  lin<>s  to  June  .'iO, 
1912,  has  been  $5,948,904. 

Another  important  item  imder  this  heading  is  the  work  of  installing  block  signals,  which  has 
been  pushed  so  that  now  all  the  main  lines  of  the  system  are  comjiletely  e(|uii)])ed  with  these  safety 
devices.  The  prosecution  of  this  important  work  had  cost  the  comi)any  .*  1,338,597  to  June  30,  1912. 
Besides  this,  new  and  better  stations  are  being  built,  freight  terminals  are  l)eing  enlarged,  exten- 
sive repair  shops  are  in  process  of  construction  at  Billerica,  Massachusetts.  All  the  station  tele- 
graph offices  from  which  train  orders  are  issued  have  been  equipped  with  train  order  signals  of 
semaphore  pattern,  grades  have  been  reduced,  and  rigid  economy  is  being  practiced  in  all  the  oper- 
ating departments. 

DIVIDENDS 


Since  1886,  the  full  6%  has  been  paid  on  the  preferred  stock, 
paid  on  the  common  stock: 


Year 

1886  . 

1887  . 
1888-9 

1890  . 

1891  . 


Rate 

93^% 
10 
9 

9 


Year 

1892.  . 

1893.  . 
1894-9. 
1900-9 . 

1910.  . 

1911.  . 

1912.  . 


ind  the  following  rates  have  be 


Rate 
fi(V 
4 
6 
7 
6 

4% 


The  largest  dividend  was  in  1887,  when  10%  was  paid.  Since  then  it  has  almost  steadily  de- 
creased. The  reason  for  this  decline  in  dividends  seems  to  be  due  in  a  large  measure  to  the  annual 
rental  charges  which  the  system  is  required  to  meet.    There  are  probably  cases  where  the  high  rate 

[  93  ] 


of  interest  guaranteed  has  been  greater  than  the  earnings  of  the  road  in  question,  resulting  in  a  loss 
to  the  Boston  &  Maine  itself.  It  is  apparent  that  if  some  of  these  onerous  charges  could  be  light- 
ened, the  road  might  be  able  to  return  to  a  more  substantial  dividend  basis. 

Through  its  ownership  of  a  majority  of  the  capital  stock  of  the  Boston  Railroad  Holding  Com- 
pany, which  in  turn  owns  a  majority  of  the  capital  stock  of  the  Boston  &  Maine  Railroad,  the  New 
York,  New  Haven  &  Hartford  Railroad  has  control  of  the  Boston  &  Maine  System.  As  a  result 
of  the  recent  traffic  agreement  entered  into  with  the  New  York  Central  &  Hudson  River  Railroad 
for  the  use  of  its  Boston  &  Albany  Lines,  practically  the  entire  transportation  of  New  England  is 
being  handled  under  one  centralized  management. 

Many  economies  have  been  found  possible  in  the  system's  operation  —  economies  which  it  is 
claimed  will  not  be  at  the  expense  of  service.  According  to  the  company's  report  for  the  fiscal  year 
of  1912  the  rehabilitation  of  the  property,  the  addition  to  its  shop  plants,  its  equipment  and  sta- 
tions will  require  at  least  two  years  to  complete,  and  in  the  meantime  the  operation  of  the  same 
is  likely  to  be  more  or  less  unsatisfactory  to  both  the  management  and  its  patrons. 

STATISTICS 

On  the  following  page  are  given  the  capitalization,  earnings,  and  traffic  statistics  of  the  Boston 
&  Maine  RaUroad,  based  on  the  average  miles  operated,  for  the  year  1900  and  for  the  years  1905  to 
1912  inclusive. 

In  the  following  tables,  "  premiums  realized  on  capital  stock  "  have  not  been  included  in  the 
amount  of  capital  stock  outstanding  per  mUe  as  per  balance  sheet.  Gross  earnings  include  both 
transportation  revenue  and  revenue  from  sources  other  than  transportation,  such  as  station  privileges, 
storage,  telegraph  service,  and  rents.  The  net  revenue  from  outside  operations  has  been  included  in 
the  item  of  "  other  income,"  and  where  deficits  from  outside  operations  have  occurred,  they  have 
been  deducted  from  "  total  net  income  "  as  a  fixed  charge. 


[94] 


BOSTON    &   MAINE   RAILROAD 


Fiscal 

Preferred 

Common 

Funded 

Rentals 

Gross 

Owned  by 

Net 

Average 

Extra 

year 

stock 

stock 

debt 

@5% 

capital 

company 

capital 

milef 
operated 

triick 

1900 

$1,797 

$12,501           $12,514 

$36,759 

$63,571 

$3,498 

$60,073 

1.752 

321 

1905 

1,377 

10,768 

13,725 

44,301 

70,171 

4,695 

65,476 

2.288 

522 

1906 

1,377 

10,773 

13,689 

44,379 

70,109 

4,606 

65,603 

2,287 

521 

1907 

1,377 

12,182 

13,324 

44,685 

71,568 

4,415 

67,153 

2,288 

522 

1908 

1,404 

12,598 

13,547 

46,226 

73,775 

4,506 

69,269 

2,242 

560 

1909 

1,404 

12,004 

18,756 

46,759 

79,523 

4,503 

75,020 

2,243 

504 

1910 

1,404 

12,859 

18,757 

46,954 

79,974 

5,180 

74,794 

2,243 

564 

1911 

1,404 

17,348 

19,549 

48,016 

86,317 

3,944 

82,373 

2,243 

570 

1912 

1,404 

17,605 

19,.540 

46,140 

84,689 

5,570  . 

79,119 

2,244 

600 

Fiscal 

Gross 

Maintenance             Transportation 

Net 

Other 

Total 

FLxed        Surplus  avail 

year 

operating 

and  general 

operating 

net 

charges 

able  for 

revenue 

Way            Equipment 
$1,710            $3,473  * 

expense 

$3,724 

revenue 

$408 

income 
$4,144 

dividends 

1900 

$12,643 

$3,736 

$3,180 

$964 

1905 

15,827 

1,966 

1,838 

7.830 

4,193 

256 

4,449 

3,624 

825 

1906 

17,140 

2,354 

1,931 

8,550 

4,311 

272 

4,583 

3,686 

897 

1907 

17,974 

2,144 

1,882 

9,509 

4,439 

307 

4,746 

3,611 

1,135 

1908 

17,391 

2,121 

2,122 

8,847 

4,301 

338 

4,639 

4,300 

339 

1909 

17,623 

■    1,894 

2,109 

8,596 

5,024 

313 

5,337 

4,270 

1,067 

1910 

19,330 

2,342 

2,428 

9,201 

5,359 

352 

5,711 

4,440 

1,271 

1911 

19.979 

2,704 

2,786 

10,180 

4,309 

414 

4,723 

4,565 

158 

1912 

20,495 

2,595 

2,857 

10,185 

4,858 

445 

5,303 

4,729 

574 

Fiscal 

Divi-           Other        Surplus 

Operating 

Total 

Conducting 

Fixed 

Gross 

Net                  Per 

cent 

year 

dends         charges 

expenses 

mainte- 

transpor- 

charges 

earnings       income             earned  on 

to 

n- 

to  gross 

nance  to 

tation  to 

to  gross 

to  gross 

to  net            capital  stock 

come 

earnings 

gross 

gross 

earnmgs 

capital         capital 

earnings 

earnings 

Preferred 

Common 

1900 

$863 

$101 

70.45% 

41.1% 

29.3% 

25.2% 

19.8% 

6.8%       53.6% 

6.8% 

1905 

790 

36 

73.51 

24.1 

49.4 

23.0 

22.5 

6.7           59.8 

6.8 

1906 

802 

95 

74.85 

24.8 

50.0 

21.5 

24.3 

7.0           65.1 

7.5 

1907 

862           $215             58 

75.30 

22.4 

52.9 

20.0 

25.0 

7.0           82.2 

8.6 

1908 

929 

590  t 

75.28 

24.5 

50.8 

24.7 

23.5 

6.7           23.8 

2.0 

1909 

810 

18           239 

71.50 

22.8 

48.7 

24.2 

22.2 

7.1           75.8 

7.8 

1910 

832 

59           350 

72.27 

24.7 

47.6 

23.0 

24.1 

7.6           90.7 

9.2 

1911 

873 

715  t 

78.43 

27.5 

50.9 

22.8 

23.1 

5.7           11.2 

0.4 

1912 

787 

213  t 

76.29 

26.6 

49.6 

23.7 

24.2 

6.6          40.!) 

2.7 

Fiscal 

Train 

Maintenance 

Conduct 

ing      Train 

Rale  per  mile 

Freight 

Train      Freight  Passenger, 

year 

mile 

per  revenue 

transportation    mile 

density 

load         to  all 

freight 

earnings 

tram  mile 

per  revenue   earnings 

Per 

Per 

revenue     traffic 

and 

(gross) 

train  mile        (net) 

passenger        ton 

tons 

company 

$1.66           $ 

^ay        Equipme 
225          $.458 

nt 

cars 

1900 

$.491 

$.492 

$.0173 

$.0144 

475,122 

161         54% 

13,795 

1905 

1.81 

224            .209 

.893 

.478 

.0175 

.0115 

810,371 

214        60 

19,513 

1906 

1.86 

255            .209 

.928 

.468 

.0177 

.0116 

879,099 

214         60 

20,484 

1907 

1.84 

220            .193 

.975 

.455 

.0175 

.0108 

1,003,920 

229        61 

23,038 

1908 

1.82 

222            .222 

.927 

.450 

.0171 

.0104 

900,137 

237        59 

26,740 

1909 

1.92 

206            .229 

.936 

.546 

.0170 

.0108 

947,347 

240        59 

27,710 

1910 

1.99 

241            .250 

.946 

.551 

.0169 

.0108 

1,046,119 

247        59 

28,020 

1911 

2.02 

273            .281 

1.028 

.435 

.0180 

.0109 

1,054,412 

247        58 

29,360 

1912 

2.15 

272            .300 

1.069 

.509 

.0178 

.0109 

1,096,658 

265         58 

28,843 

*  This  exceptional  figure  is  explained  by  the  fact  that  new  equipment  was  charged  to  this  account,  also  the  cost  of  fitting  equipme 
vith  air  brakes,  etc. 
t  Deficit. 


[  95 


BOND    DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Boston  &  Maine 

System,  together  with   the  bases  on  which   they   have  sold 

during   the   decade   ending   December   31,    1012. 


BOSTON    &   MAINE   RAILROAD 

The  total  bonded  debt  outstanding  of  the  Boston  &  Maine  Railroad  proper  on  June  30,  1912, 
was  $43,849,000.  $2,776,000  represented  the  amount  secured  by  a  first  mortgage  on  118.95  miles, 
making  the  total  outstanding  bonded  debt  secured  by  mortgage  $23,325  per  mile.  Subject  to  the 
above  $2,776,000  first  mortgage  bonds,  there  are  at  present  outstanding  the  sum  of  $41,073,000  of 
plain  bonds,  which  are  unsecured.  On  the  basis  of  miles  owned  in  fee,  the  amount  of  these  unsecured 
bonds  outstanding  is  $58,095. 

The  Massachusetts  laws  provide,  however,  that  no  mortgage  issue  can  be  placed  on  the  property 
of  the  railroad  owned  without  equally  securing  the  present  outstanding  unsecured  bonds  mentioned 
alx)\e,  and  although  they  are  not  seciu-ed  by  mortgage,  the  bonds  are  strongly  rated  as  investments. 

1.     Sinking  Fund  Improvement  4s 

Dated  February  1,  1887  Maturing  February  1,  1937 

Interest  payable  May  1  and  November  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000. 

Listed  on  the  Boston  Stock  Exchange  ■  Outstanding  $1,919,000 

Sinking  fund:  l}4%  of  the  bonds  outstanding  is  annually  paid  in  cash  to  the  trustee  of  the  sinking  fund, 
the  Boston  Safe  Deposit  &  Trust  Company,  to  be  invested  in  approved  securities.  On  June 
30,  1912,  the  amount  thus  invested  in  the  sinking  fund  was  $1,098,281. 

These  bonds  sold  in  1906  on  a  3.25  basis 

1909  4.05  (bid) 

1910  4.20  (asked) 

1911  4.40  (bid) 
December,  1912     4.65  (bid) 

2.     Plain  4s 

Dated  August  1,  1892  Maturing  August  1,  1942 

Interest  payable  February  1  and  August  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000.    Registered  bonds  of  $;>,0()0. 

Listed  on  the  Boston  Stock  Exchange  Outstanding  $2,500,000 

These  bonds  were  quoted  in  1909  on  a  4.05  basis  (bid) 

1910  4.20  (asked) 

1911  4.37  (bid) 
December,  1912  4.65 

3.     Plain  Gold  4i^s 

Dated  January  L  1894  Maturing  January  1,  1944 

Interest  j)ayable  January  1  and  July  1  at  Company's  office,  Boston. 

{ '()Ui)on  bonds  of  $1 ,000.    Registered  bonds  of  $1,000. 

Listed  on  the  Bo.ston  Stock  Exchange  Outstanding  $6,000,000 

[   OS  1 


These  bonds  sold  in  1902  on  a  3.37  basis 
1904  3.65  to  3.75 

1909  4.15  (bid) 

1910  4.27  (bid) 

1911  4.40  (bid) 
December,  1912     4.65  (bid) 

4.     Plain  Gold  3s 

Dated  July  2,  1900  Maturing  July  1,  1950 

Interest  payable  January  1  and  July  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000.    Registered  bonds  of  $1,000. 
Not  listed  Uutstanding  $5,454,000 

This  issue  is  secured  by  a  deposit  of  an  e((ual  amount  jjar  value  of  Fitchburg  Railroad  Com])any 
stock  —  21%  of  amount  outstanding. 

These  bonds  sold  in  1910  on  a  4.30  to  4.45  basis 
1911  4.37       4.45 

December,  1912  4.75  (bid) 

5.  Plain  S^s 

Dated  November  1,  1901  Maturing  November  1,  1921 

Interest  payal)lc  May  1  and  November  1  at  Comj)any's  office,  Boston. 

Coupon  bonds  of  $1,000.    Registered  bonds  of  $1,000. 
Not  listed  Outstanding  $1,000,000 

These  bonds  were  quoted  in  1909  on  a  4.25  basis  (bit!) 

1910  4.40 

1911  4.50 
December,  1912           4.75 

6.  Plain  33 is 

Dated  January  1,  1903  Maturing  January  1,  1923 

Interest  payable  January  1  and  July  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000.    Registered  bonds  of  $1,000. 
Not  listed  Outstanding  $2,000,000 

These  bonds  were  <iuoled  in  1909  on  a  4.20  basis  (bid) 

1910  4.20  (asked) 

1911  4.40  (bid) 
December,  1912  4.65 

7.  Plain  3^  2^ 

Dated  February  2,  1905  Maturing  February  2,  1925 

Interest  payable  February  2  and  August  2  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Not  listed  Outstanding  $500,000 

[  99  ] 


8.    Plain  4s 

DiilfJ  September  1,  iy()(!  Maluriiig  Scplcniber  1,  1!)2G 

InteresL  ]iay;iljlc  iM;ircli  1  and  September  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  fully  registerable. 

Registered  bonds  of  $1,000  and  multiples. 

Not  listed  Outstanding  $10,000,000 

These  bonds  were  (piotcd  in  1909  on  a  'i^'g  basis  (t)i(O 

1910  4.35 

1911  4.4.5 
December,  1912  4.75 

9.     Plain  43- ^s 
Dated  April  I,  1909  Maluring  April  1,  1929 

Interest  jjayablc  April  1  and  October  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000. 

Not  listed  Outstanding  $11,700,000 

These  bonds  were  quoted  in  1909  on  a  4.20  basis  (bid) 

1910  4.30 

1911  4.45 
Deccml)er,  1912  4.75 

These  bonds  are  considei-ed  a  legal  investment  for  savings  banks  in  Maine,  New  IIami)sliire,  Massa- 
chusetts, Connecticut  and  Rhode  Island. 


PORTSMOUTH,   GREAT   FALLS   &   CONWAY  RAILROAD 

First  Mortgage  Currency  4^  js 

Dated  June  1,  1S77  Maiming  .June  1,  1937 

Interest  payable  .lune  1  and  December  1  at  New  York  and  Boston. 

Coupon  Ijonds  of  $500  and  $1,000. 

r>isted  on  the  Boston  Stock  E.xchange. 

Authorized  $1,000,000  Outstanding  $1,000,000 

Per  mile  .    .  13,700 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Portsmouth,  Great  FalLs  &  Conway 

Railroad  from  Jcwett,  Me.,  to  North  Conway,  N.  H.,  72.86  miles.     They  are  also  secured 
by  a  first  mortgage  on  all  the  equipment  of  the  company  and  future  acquisitions. 

These  bonds  were  ASSUMED  by  the  BOSTON  &  MAINE  RAILROAD  in  1890. 

Property:  The  Portsmouth,  Great  Falls  &  Conway  Railroad  (now  a  part  of  the  Boston  &  Maine  Rail- 

road proper)  operates  85.63  miles  of  track  between  Conway  Junction,  Me.,  and  North  Con- 
way, N.  II.    It  was  chartered  June  30,  1865,  as  the  result  of  a  consolidation  between  the  Great 
f  100  ] 


Falls  &  Conway  Railroad  and  the  Great  Falls  &  South  Berwick  Railroad.  The  line  to  Conway 
was  built  by  the  consolidated  company  and  completed  June  3,  1872.  It  was  leased  in  1871  to 
the  Eastern  Railroad  of  New  Hampshire  for  60  years,  and  was  leased  again  from  October  1, 
1878,  for  GO  years  under  the  Eastern  (Massachusetts)  Railroad  Company. 

On  May  9,  1890,  the  Portsmouth,  Great  Falls  &  Conway  Railroad  Company,  together  with  the 
Eastern  Railroad  Company  of  Massachusetts,  was  consolidated  with  the  Boston  &  INIaine  Rail- 
road. In  the  consolidation,  holders  of  the  Portsmouth,  Great  Falls  &  Conway  stock  received  $83.28 
in  new  stock  for  every  $100  turned  in,  and  all  bonds  of  the  railroad  outstanding  were  assumed  by 
the  Boston  &  Maine. 

Those  bonds  sold  in  1902  on  a  3.35  to  '3A5  basis 


1904 

3.75 

1906 

3.87 

1909 

4.15  (bid) 

1910 

4.20  (bid) 

1911 

4.30  (bid) 

December,  1912 

4.60  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts, Connecticut  and  Rhode  Island. 


WORCESTER,   NASHUA   &   ROCHESTER  RAILROAD 


First  Mortgage  4s 


Dated  («)  $150,000  January  1,  190() 

(b)  $735,000  January  1,  1890 

(c)  $511,000  January  1,  1893 
((/)  $380,000  October  1,  1894 


Maturing  (a)  January  1,  1935 

(b)  January  1,  1930 

(c)  January  1,  1913 

(d)  October  1,  1934 


Interest  payable  a,  b  and  c  January  1  and  July  1 ; 
d  April  1  and  October  1,  at  American  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  j)rincii)al. 


Authorized  $1,789,000 


Outstanding  $1,776,000 
Per  mile  .    .  37,780 


Security:  The  above  bonds   are  secured  by  a  first  mortgage  on  the  Worcester,  Nashua  &  Rochester 

Railroad  Company's  line  from  Worcester,  Mass.,  to  Nashua,  N.  H.,  47.0  miles.    It  is  also 
secured  by  a  first  mortgage  on  the  equipment  of  that  line. 

These  bonds  were  ASSUMED  by  the  BOSTON  &  MAINE  RAILROAD  COMPANY  under 
terms  of  its  lease. 


The  Worcester,  Nashua  &  Rochester  Railroad  was  chartered  December  1,  1883,  under  the  laws 
of  Massachusetts,  as  the  result  of  a  consolidation  of  the  Worcester  &  Nashua  Railroad  Company 
and  the  Nashua  &  Rochester  Railroad  Company.  On  January  1,  1886,  the  company  was  leased  to 
the  Boston  &  Maine  Railroad  for  fifty  years,  at  an  annual  rental  of  $2.50,000.  With  the  approval  of 
the  Railroad  Commission  of  Massachusetts,  and  of  a  large  majority  of  the  .stockholders  of  both  com- 
panies, the  jjurchase  of  the  franchises  and  property  of  the  Worcester,  Nashua  &  Rochester  Railroad 
by  the  Boston  &  Maine  Railroad  was  consummated  in  June,  1911. 

[  101  1 


The  4s  of  1930  sold  in  lf)09  on  a  4.07  basis 

1910  4.07  to  4.22 

1911  4.15       4.22 
December,  1912  4.55  (bid) 

The  4s  of  1934  sold  in  1910  on  a  4.07  to  4.20  basis 
1911  4.12       4.20 

December,  1912  4.50  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  Vermont,  Massachusetts, 
Connecticut  and  Rhode  Island. 


BOSTON    &   LOWELL   RAILROAD 

The  Boston  &  Lowell  Railroad  proper,  on  June  30,  1912,  had  under  operation  a  total  of  111.27 
miles,  all  unmortgaged,  as  follows:  from  Boston  to  Lowell,  26  miles;  Reformatory,  Concord,  to 
Lexington,  11  miles;  Tewksbury  to  Peabody,  17  miles;  Lowell  to  Lawrence,  12  miles;  and  other 
branches  aggregating  45  miles,  all  in  Massachusetts. 

In  April,  1887,  the  Boston  &  Lowell  Railroad  was  leased  to  the  Boston  &  Maine  Railroad  Com- 
pany for  99  years,  the  rental  being  7%  on  the  stock  for  the  first  ten  years  and  8%  thereafter, 
INTEREST  on  the  bonds  also  being  GUARANTEED. 

The  total  funded  debt  of  the  road  outstanding  is  $6,528,000,  all  of  which  is  unsecured.  On 
a  per  mile  basis  the  amount  of  these  unsecured  bonds  outstanding  is  $58,800.  The  statutes  of 
INIassachusetts  forbid  the  company  from  executing  any  mortgage  on  its  property  without  equally 
securing  these  bonds. 

1.  Plain  4s 

Dated  April  1,  1892  Maturing  April  1,  1932 

Interest  payable  April  1  and  October  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Listed  on  the  Boston  Stock  Exchange  Outstanding  $1,000,000 

These  bonds  sold  in  1910  on  a  3.60  to  4.20  basis 
1911  4.10       4.18 

December,  1912  4.50  (bid) 

Listed  on  the  Boston  Stock  Exchange  Outstanding  $1,000,000 

2.  Plain  4s 

Dated  March  1,  1895  Maturing  March  1,  1915 

Interest  payable  March  1  and  September  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Listed  on  the  Boston  Stock  Exchange  Outstanding  $500,000 

[   102  ] 


These  hoiuls  sold  in  1910  on  a  4.22  to  4.40  basis 
1911  4.30       4.45 

December,  1912  4.45  (bid) 

3.  Plain  4s 

Dated  July  1,  1896  Maturing  July  1,  1916 

Interest  payable  January  1  and  July  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Listed  on  the  Boston  Stock  Exchange  Outstanding  $750,000 

These  bonds  sold  in  1910  on  a  4.20  to  4.35  basis 
1911  4.22       4.40 

December,  1912  4.50  (bid) 

4.  Plain  4s 

Dated  October  1,  1897  Maturing  October  1,  1917 

Interest  payable  April  1  and  October  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Not  listed  Outstanding  $200,000 

5.  Plain  4s 

Dated  October  1,  1898  Maturing  Octol)er  1,  1918 

Interest  payable  April  1  and  October  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Not  listed  Outstanding  $214,000 

These  bonds  sold  in  1910  on  a  43^  to  i}4  basis 
1911  4.20       4.30 

December,  1912  4.65  (bid) 

6.     Plain  332S 

Dated  July  1,  1899  Maturing  July  1,  1919 

Interest  payable  January  1  and  July  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Not  listed  Outstanding  $620,000 

These  bonds  were  sold  in  1909  on  a  4.15  basis  (bid) 

1910  4.25  to  4.30 

1911  4.25       43/8 
December,  1912  4.45  (bid) 

[  103  ] 


7.  Plain  3>2S 

Dalcd  January  1,  1001  Maturing  January  1,  VMl 

Interest  payable  January  1  and  July  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Not  listed  Outstanding  $310,000 

8.  Plain  Sj^^s 

Dated  May  1,  lOO:;  Maturing  May  1,  VJ2'3 

Interest  payable  May  1  and  November  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Not  listed  (Julstanding  $250,000 

9.  Plain  Sj^s 

Dated  September  1,  1905  Maturing  September  1,  1925 

Interest  payable  March  1  and  September  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Not  listed  Outstanding  $500,000 

10.  Plain  4s 

Dated  November  1,  19(»(i  Maturing  November  1,  1})2(; 

Interest  payable  May  1  and  Novemltcr  1  at  Company's  office,  Boston. 

Coujwn  bonds  of  $1,000,  registerable  as  to  principal  only  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Not  listed  Outstanding  $500,000 

11.  Plain  4s 

Diiled  July  1,  1907  INIaluring  July  1,  1927 

Interest  payable  Januarj'  1  and  July  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Not  listed  Outstanding  $325,000 

12.  Plain  4s 

Dated  April  1,  1909  Maturing  Ajn-il  1,  1929 

Iiilcrest  ])ayable  A\ni\  1  and  October  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Not  listed  Outstanding  $350,000 

1   10 1-   1 


13.     Refunding  4)  ^s 

Dalctl  Fuhruary  1,  11)1:5  iMaUaing  Fdjnuiiy  1,  1!)3;5 

Interest  payable  l'VI)ruary  I  and  August  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $25,000. 

Outstanding  $1,000,000 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  Massachusetts,  Conneelicut 
and  Rhode  Island. 


NEWPORT   &   RICHFORD   RAILROAD 

First  Mortgage  5s 

Dated  January  1,  1911  Maturing  January  1,  1941 

Interest  payable  January  1  and  July  1  at  the  Boston  Safe  Deposit  &  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $350,000  Outstanding  $350,000 

Per  mile  .    .       15,900 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  'J'i  miles  of  the  company's  road  from  New- 

port, Vt.,  to  the  Canadian  boundary  line,  via  Richford. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Connecticut 
&  Passumpsic  Ri\ers  Railroad  Company.  They  are  GUARANTEED,  also,  as  to  INTEREST 
jointly  and  severally  by  the  Boston  &  Lowell  Railroad  and  the  Boston  &  Maine  Railroad 
Companies. 

'I'ruslee:  Boston  Safe  Deposit  &  Trust  Company,  Boston. 

Tlic  Newport  &  Richford  Railroad  Company  was  incori)oralcd  in  1880  under  the  laws  of  Ver- 
mont as  the  result  of  a  reorganization  of  the  JMissisquoi  &  Clyde  Railroad  Company.  In  June,  1881, 
it  was  leased  for  99  years  to  the  Montreal  &  Atlantic  Railway  Company  at  an  annual  rental  of 
$18,000.  The  entire  capital  stock  of  the  Newport  &  Richford  Railroad  Company  is  owned  by  the 
Connecticut  &  Passumpsic  Rivers  Railroad  Company,  which  was  leased  for  99  years  from  1887  to 
the  Boston  &  Lowell  Railroad  Company. 

These  bonds  were  sold  in  October,  1911,  at  1101  and  interest 
They  were  quoted  in  December,  1912,  on  a  4.37  basis  (asked) 


CONCORD    &   CLAREMONT    (N.    H.)    RAILROAD 
First  Mortgage  432s 

Dated  January,  1904  Maturing  January  1,  1914 

Interest  payable  January  1  and  July  1  at  the  First  National  Bank,  Boston. 

Coupon  bonds  of  $1,000. 
Authorized  $500,000  Outstanding  $500,000 

Per  mile  .    .         7,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Concord  to 

Claremont  Junction,  N.  H.,  and  a  branch  from  Contoocook  to  Hillsboro,  totalling  70.9  miles. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  jointly  and  severally 
by  the  Boston  &  Lowell  and  the  Boston  &  Maine  Railroad  Companies. 

The  Concord  &  Claremont  Railroad  was  incorporated,  October  31,  1873,  under  the  laws  of  New 
Hampshire,  as  the  consolidation  of  the  Merrimac  &  Connecticut- Rivers,  the  Sugar  River,  and  the 
Contoocook  River  Railroad  Companies.  The  Concord  &  Claremont  Railroad  is  controlled  by  the 
Northern  Railroad  Company,  but  has  been  operated  by  special  agreement  since  January  1,  1890, 
by  the  Boston  &  Maine  Railroad  Company,  which  pays  the  interest  on  the  above  bonds. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Mas- 
sachusetts. 


PETERBOROUGH   &  HILLSBOROUGH   RAILROAD 

First  Mortgage  Currency  4i^s 

Dated  July  1,  1897  Maturing  July  1,  1917 

Interest  payable  January  1  and  July  1  at  First  National  Bank,  Boston. 

Coupon  bonds  of  $500. 
Authorized  $100,000  Outstanding  $100,000 

Per  mile  .    .        5,400 

Security:  The  above  bonds  are  a  first  mortgage  on  the  Peterborough  &  Hillsborough  Railroad,  whose 

line  extends  from  Peterborough  to  Hillsborough,  N.  H.,  18.51  miles.     They  are  also  a  first 
mortgage  on  all  future  acquisitions  within  the  above  termini. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Bos- 
ton &  Lowell  Railroad  and  Boston  &  Maine  Railroad  JOINTLY  and  SEVERALLY. 

All  the  capital  stock  of  the  Peterborough  &  Hillsborough  Railroad  is  owned  by  the  Northern 
Railroad.  The  former  was  chartered  July  7,  1869,  under  the  laws  of  New  Hampshire.  Its  line  was 
completed  July  5,  1878.  In  1890  the  Northern  Railroad  was  leased  to  the  Boston  &  Lowell  Railroad 
for  99  years.    This  lease  was  assigned  to  the  Boston  &  Maine  Railroad. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Mas- 
sachusetts. 


CONNECTICUT    &   PASSUMPSIC   RIVERS   RAILROAD 

First  Mortgage  4s 

Dated  April  1,  1893  Maturing  April  1,  1943 

Interest  payable  April  1  and  October  1  at  the  Boston  Safe  Deposit  &  Trust  Company.  Boston. 

C'oupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $1,900,000  Outstanding     $1,900,000 

Per  mile  .    .  17,300 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  White  River 

Junction,  Vt.,  to  the  Canadian  boundary  Une,  110.3  miles.  They  are  further  secured  by  the 
leasehold  of  the  Massawippi  Valley  Railway  Company,  35  miles,  and  equipment;  also  by 
a  first  collateral  lien  on  4,000  shares  of  the  latter  company,  which  bear  no  dividends  and  have 
no  voting  rights  during  the  term  of  the  above-mentioned  lease. 

These  bonds  are  GUARANTEED,  jointly  and  severally,  as  to  INTEREST  by  the  Boston  & 
Lowell  Railroad  and  the  Boston  &  Maine  Railroad  Companies. 

Trustee:  Boston  Safe  Deposit  &  Trust  Company,  Boston. 

The  Connecticut  &  Passumpsic  Rivers  Railroad  Company  was  chartered  November  10,  1835, 
under  the  laws  of  Vermont.  Its  line  was  opened  throughout  for  traffic  October  14,  1863.  From 
1887  (January  1)  it  was  leased  to  the  Boston  &  Lowell  Railroad  Company  for  99  years,  at  an  annual 
rental  equivalent  to  interest  on  the  company's  bonds,  6%  on  its  capital  stock,  and  $3,000  for  organi- 
zation expenses. 

The  Massawippi  Valley  Railway  was  leased  for  999  years  from  July  1,  1S70.  thereby  continuing 
this  line  into  Canada  to  a  junction  with  the  (irand  Trunk  Railway. 

These  bonds  were  quoted  in  December,  1912,  on  a  4.10  basis. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  Vermont,  Massachusetts, 
Connecticut  and  Rhode  Island. 


THE   CONCORD    &   MONTREAL   RAILROAD 

Mortgage  Currency  4s 

Dated  June  2,  1890  Maturing  June  1,  1920 

Interest  payable  June  1  and  I>ecember  1  at  Boston  Safe  Deposit  &  Trust  C'ompany,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  i)rincipal. 

Authorized  $5,500,000  Outstanding  $5,500,000 

Per  mile  .    .         20,220 
Listed  on  the  Boston  Stock  Exchange 

Security:  The  above  bonds  are  a  first  mortgage  on  272.08  miles  of  road,  all  in  New  Hampshire,  as  follows: 

from  Groveton  to  Nashua,  181.07  miles;    Wing  Road  to  Mount  Washington,  20.17  miles; 
branches  to  Bethlehem  and  Profile,  12.84  miles;  from  Hookset,  via  Suncook,  to  Concord,  7.59 
[  107  ] 


miles;  from  Lakeport  to  Alton  Bay,  17.28  miles;  from  Belmont  Junction  to  Belmont,  4.17 
miles;  from  Pittsfield  to  Center  Barnsted,  4.46  miles;  and  from  Manchester  to  Henniker, 
24.5  miles. 

The.se  bonds  are  GUARANTEED  as  to  INTEREST  under  the  terms  of  lease  by  the  Boston  & 
Maine  Railroad. 

Trustee:  Boston  Safe  Deposit  &  Trust  Company,  Boston. 

The  Concord  &  Montreal  Railroad  was  incorporated  September  19,  1889,  under  the  laws  of 
New  Hampshire,  as  a  result  of  a  consolidation  of  the  Boston,  Concord  &  Montreal  Railroad,  and  the 
Concord  Railroad  Company.  The  railroads  owned,  leased  and  controlled  by  this  railroad  are  leased 
to  the  Boston  &  Maine  Railroad  for  91  years  from  April  1,  1895.  The  latter  company  assumes  all 
liabilities  of  the  Concord  &  Montreal  Railroad,  and  agrees  to  pay  rental  dividends  of  7%  per  annum 
on  its  capital  stock. 

These  bonds  sold  in  1909  on  a  4.10  basis  (bid) 

1910  4.12 

1911  4.35 
December,  1912  4.25  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


CONCORD    &   MONTREAL   RAILROAD 
1.    Plain  4s 

Dated  June  1,  1897  Maturing  June  1,  1920 

Interest  payable  June  1  and  December  1  at  the  Boston  Safe  Deposit  &  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $650,000  Outstanding  $650,000 

2.  Plain  3^45 

Dated  December  1,  1899  Maturing  Jime  1,  1920 

Interest  payable  June  1  and  December  1  at  the  Boston  Safe  Dcjiosit  &  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  princijial. 
Authorized  $500,000  Outstanding  $400,000 

3.  Plain  3>^s 

Dated  June  1,  1901  Maturing  June  1,  1920 

Interest  payable  June  1  .and  December  1  at  the  Boston  Safe  De])osit  &  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $1,000,000  Outstanding  $473,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Concord  &  Montreal  Railroad  Company,  but 

are  not  secured  by  a  mortgage. 

I    1<»«  ] 


These  bonds  are  GUARANTEED  as  to  INTEREST  by  the  Boston  &  Maine  Raih-oad  Com- 
pany under  terms  of  its  lease. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Connecti- 
cut and  Rhode  Island. 


CONNECTICUT   RIVER  RAILROAD    COMPANY 


1.  *Plain  4s 

2.  Plain  3Hs 

3.  Plain  Sj/^s 


September  1,  1893 
January  1, 1901 
January       1,  1903 


Maturing 

lulerest  payalile 
at  Boston 

Oiilslandinj,' 

September  1,  1943 
January       1, 1921 
January       1, 1923 

March  and  September 
January  and  July 
January  and  July 

$1,000,000 
290,000 
969,000 

Coupon  bonds  of  $1,000. 

Security:  The  above  bonds  are  unsecured  by  mortgage,  but  are  direct  obligations  of  the  company.    The 

Statutes  of  Massachusetts  forbid  the  company  froiii  executing  any  mortgage  on  its  proi)erty 
without  equally  securing  these  bonds. 

GUARANTEED  as  to  INTEREST  under  the  terms  of  lease  by  the  Boston  &  Maine  Rail- 
road. 

Property:  The  Coimecticut  River  Railroad  operates  a  total  of  80.89  miles  as  follows:  from  Springfield, 

Mass.,  to  Keene,  N.  H.,  74.0  miles;  from  Chicopee  to  Chicopee  Falls,  Mass.,  2.35  miles; 
from  Mt.  Tom  to  Easthampton,  Mass.,  3.5  miles;  and  from  Deerfield  to  East  Deerfield, 
Mass.,  1.04  miles. 

The  Connecticut  River  Railroad  was  incorporated  February  9,  1890,  under  tlie  laws  of  Ma.ssa- 
chu.setts,  as  the  result  of  a  consolidation  of  the  Connecticut  River  Railroad  Company  and  tlie  Asbue- 
lot  Railroad  Company.  It  was  leased  to  the  Boston  &  Maine  Railroad  for  99  years  from  January  1, 
1893,  at  an  annual  rental  which  covers  interest  on  all  outstanding  bonds  and  scrip,  10%  on  capital 
stock  and  $2,000  annually  for  organization  expen,ses. 

Plain  4s  of  1943  were  quoted  in  1909  on  a  4.00  basis  (bid) 

1910  4.10 

1911  4.10 
December,  1912  4.37 

Plain  31.^3  of  1923  were  quoted  in  1909  on  a  4.12  basis  (bid) 

1910  4.25 

1911  4.25 
December,  1912  4.40   (bid) 

These  bonds  are  considered  a  legal  iu^-estraent  for  savings  banks  in  Maine,  Massachusetts,  Connecticut 
and  Rhode  Island. 


FITCHBURG   RAILROAD 


The  Fitchburg  Railroad  proper,  which,  together  with  the  Vermont  and  Massachusetts 
Railroad,  is  now  known  as  the  Fitchburg  Division  of  the  Boston  &  Maine  System,  has 
at  the  present  time  under  operation    a    total    of   394.14   miles,    as   follows:    Boston   to    Fitch- 

*  Listed  on  the  Boston  Stock  Exchange. 

[  109  ] 


hxirg,  Massachusetts,  49.65  miles;  Greenfield,  Massachusetts,  to  Rotterdam  Junction,  New 
York,  105.25  miles;  South  Ashburnham,  Massachusetts,  to  Bellows  Falls,  Vermont,  53.85  miles; 
West  Cambridge  to  Waltham,  Massachusetts,  6.63  miles;  South  Acton  to  Marlborough,  Massachu- 
setts, 12.35  miles;  Ayer  to  Greenville,  New  Hampshire,  23.64  miles;  Sequannacook  Junction,  Mas- 
sachusetts, to  Milford,  New  Hampshire,  21.73  miles;  Worcester,  Massachusetts,  to  Peterborough, 
New  Hampshire,  51.67  miles;  Mechanicsville  to  Saratoga,  New  York,  17.5  miles;  Troy,  New  York, 
to  the  Massachusetts- Vermont  State  Line,  40.3  miles;  and  branches  totalling  11.57  miles.  Of  the 
total  mileage  at  present  operated,  34.74  miles  (from  Troy,  New  York,  to  the  New  York- Vermont 
State  Line)  are  subject  to  first  mortgage  bonds,  and  the  balance,  359.40  miles,  are  unmortgaged. 

The  Fitchburg  Railroad  Company  was  chartered  May  3,  1842,  under  the  laws  of  Massachu- 
setts, and  has  reached  its  present  size  as  a  result  of  many  consolidations.  It  is  leased  to  the  Boston 
&  Maine  Railroad  for  99  years  from  July  1,  1900.  The  lessee  agreed  to  assume  all  the  obligations  of 
the  above  company  and  to  pay  as  rental,  dividends  of  5%  per  annum  on  all  the  preferred  stock  of 
the  company  and  1%  on  the  common  stock  when  owned  by  the  public* 

The  total  outstanding  bonded  debt  of  the  Fitchburg  Railroad  proper  on  June  30,  1912,  was 
$24,167,000,  the  INTEREST  on  which  has  been  GUARANTEED  by  the  Boston  &  Maine  Railroad. 
$573,000  represents  the  amount  which  is  secured  by  a  first  mortgage  on  the  above-mentioned  34.74 
miles,  making  the  total  outstanding  bonded  debt  secured  by  mortgage  $14,220  per  mile.  Subject  to  the 
above  $573,000  first  mortgage  bonds,  there  are  at  present  outstanding  $23,594,000  plain  bonds  which 
are  unsecured. 

On  a  per  mile  basis  the  amount  of  these  unsecured  bonds  outstanding  is  $59,870,  and  under  the 
Massachusetts  laws  no  mortgage  issue  can  be  placed  upon  the  property  of  the  railroad  owned  without 
equally  securing  the  above  direct  obligations  of  the  company.  Below  are  listed  and  described  the 
bond  issues  of  the  Fitchburg  Railroad  proper. 

1.     Plain  41  ^s 

Dated  May  1,  1894  Maturing  j\[ay  1,  1914 

Interest  payable  May  1  and  November  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  princi])al. 
Listed  on  the  Boston  Stock  Exchange  Outstanding  $500,000 

These  bonds  were  quoted  in  1909  on  a  4.15  basis  (bid) 

1910  4.50 

1911  4.50 
July,  1912           4.50 

2.     Plain  4s 

Dated  March  1,  1895  Maturing  March  1,  1915 

Interest  payable  March  1  and  September  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Listed  on  the  Boston  Stock  Exchange  Outstanding  $1,359,000 

These  bonds  sold  in  1900  on  a  3.75  to  3.87  basis 
1907  4.15 

1909  4.20  (bid) 

1910  4.40  (bid) 

1911  4.55  (bid) 
July,  1912     4.70  (bid) 

*  Kntire  coramou  stock  is  lield  by  the  Boston  &  Maine  Hailroad. 

[   110  ] 


3.  Plain  4s 

Dated  July  1,  189G  Maturing  July  1,  1916 

Interest  payable  January  1  and  July  1  at  Company's  ofEce,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  princiiml. 
Listed  on  the  Boston  Stock  Exchange  Outstanding  $500,000 

These  bonds  sold  in  1910  on  a  4.20  to  4.55  basis 
1911  4.45 

December,  1912  4.50  (bid) 

4.  Plain  4s 

Dated  June  1,  1890  Maturing  June  1,  1920 

Interest  payable  June  1  and  December  1  at  Company's  ofBce,  Boston. 

Coupon  bonds  of  $1,000, 

Registerable  as  to  principal  or  fully  registerable  in  lots  of  $10,000  and  $50,000. 

Listed  on  the  Boston  Stock  Exchange  Outstanding  $500,000 

5.  Plain  33^s 

Dated  October  1,  1900  Maturing  October  1,  1920 

Interest  payable  April  1  and  October  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000, 
Registerable  as  to  principal  or  fully  registerable  in  lots  of  $1,000,  $5,000  and  $10,000. 

Not  listed  Outstanding  $500,000 

These  bonds  sold  in  1907  on  a  4.10  basis 

1909  4.10  + 

1910  41^ 

1911  iVs 
December,  1912  4.45  (bid) 

6.  Plain  Sj^^s 

Dated  October  1,  1901  Maturing  October  1,  1921 

Interest  payable  April  1  and  October  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000, 
Registerable  as  to  principal  or  fully  registerable  in  lots  of  $5,000,  $10,000  and  $50,000. 

These  are  not  listed  Outstaudmg  $1,775,000 

These  bonds  sold  in  1910  on  a  4.15  to  4.50  basis 
1911  4.55 

December,  1912  4.37  (bid) 

7.    Plain  4s 

Dated  May  1,  1905  Maturing  May  1,  1925 

Interest  payable  May  1  and  November  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000, 

Registerable  as  to  principal  or  fully  registerable  in  lots  of  $5,000,  $10,000  and  $50,000. 

Not  listed  Outstanding  $3,660,000 

[   111   ] 


These  bonds  sold  in  1910  on  a  4.07  to  4.25  basis 
1911  4.20       4.25 

December,  1912  4.40  (bid) 

8.  Plain  4s 

Dated  March  1,  1897  Maturing  March  1.  1927 

Interest  payable  March  1  and  September  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Listed  on  the  Boston  Stock  Exchange  Outstanding  $2,750,000 

These  bonds  sold  in  1907  on  a  4.00  basis 

1908  4.35 

1909  4.07  (bid) 

1910  4.20  (bid) 

1911  4.15  (bid) 
December,  1912  4.37  (bid) 

9.  Plain  4s 

Dated  April  1,  1907  Maturing  April  1,  1927 

Interest  payable  April  1  and  October  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000, 
Registerable  as  to  principal  or  fully  registerable  in  lots  of  $5,000,  $10,000  and  $50,000. 

Not  listed  Outstanding  $2,000,000 

10.  Plain  4s 

Dated  January  1,  1898  Maturing  January  1,  1928 

Interest  payable  January  1  and  July  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000, 
Registerable  as  to  principal  or  fully  registerable  in  lots  of  $5,000,  $10,000  and  $50,000. 

Listed  on  the  Boston  Stock  Exchange  Outstanding  $1,450,000 

These  bonds  sold  in  1910  on  a  4.07  to  4.25  basis 
1911  4.15       4.20 

December,  1912  4.35  (bid) 

11.  Plain  4j4s 

Dated  May  1,  1908  Maturing  May  1,  1928 

Interest  payable  May  1  and  November  1  at  Treasurer's  office,  Boston. 

Coupon  bonds  of  $1,000, 
Registerable  as  to  princijial  or  fully  registerable  in  lots  of  $5,000,  $10,000  and  $50,000. 

Not  listed  Outstanding  $2,400,000 

These  bonds  sold  in  1910  on  a  4.15  to  4.40  basis 
1911  4.22       4.25 

July,  1912  4.55  (bid) 

[   112] 


12.    Plain  4V^s 

Dated  January  1,  1912  JNIatiiring  January  1.  1032 

Interest  payable  January  1  and  July  1  at  Treasurer's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000.    Coupon  and  registered  bonds  interchangeable. 

Authorized  $1,200,000  Outstanding  $1,200,000 

13.     Plain  4Ks 

Dated  January  1,  1013  Maturing  January  1,  1933 

Interest  payable  January  1  and  July  1  at  Treasurer's  office,  Boston. 

Coupon  bonds  of  $6,000, 
Registerable  as  to  principal  or  fully  registerable  in  lots  of  $5,000,  $10,000  and  $50,000. 

Outstanding  $400,000 
These  bonds  were  offered  in  January,  1913,  on  a  4.40  basis. 

14.     Plain  4s 

Dated  February  1,  1887  Maturing  February  1,  1937 

Interest  payable  February  1  and  August  1  at  Treasurer's  office,  Boston. 

Coupon  bonds  of  $1,000, 
Registerable  as  to  principal  or  fully  registerable  in  lots  of  $5,000,  $10,000  and  $50,000. 

Outstanding  $5,000,000. 

The  bonds  of  the  Fitchburg  Railroad  are  considered  a  legal  investment  for  savings  banks  in  Maine, 
Massachusetts  and  Connecticut. 


TROY    &   BOSTON   RAILROAD 

First  Mortgage  Currency  7s 

Dated  July  1,  1874  Maturing  July  1,  1924 

Interest  payable  January  1  and  July  1  at  Fitchburg  Railroad  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  $5,000  and  $10,000. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

Authorized  $1,500,000  Outstanding  $573,000 

Per  mile  .    .       14,200 

Security:  The  above  bonds  are  a  first  mortgage  on  the  Troy  &  Boston  Railroad  line  from  Troy,  N.  Y., 

to  the  New  York- Vermont  state  line,  34.74  miles,  and  equipment.    They  arc  also  secured  by 
a  one-quarter  interest  in  the  Troy  Union  Railroad,  Troy,  N.  Y.,  1.87  miles. 

These  bonds  are  GUARANTEED  as  to  INTEREST  under  the  terms  of  lease  by  the  Boston 
&  Maine  Railroad. 

[  113] 


The  Troy  &  Boston  Railroad  Company  was  chartered  November  22,  1849,  and  completed  on 
March  10, 1852.  On  May  3,  1887,  it  was  consolidated  with  the  Fitchburg  Railroad  Company  and  is 
now  subject,  with  the  latter,  to  the  lease  by  the  Boston  &  Maine  Railroad. 

These  bonds  were  quoted  in  1909  on  a  4.05  basis  (bid) 

1910  4.40 

1911  4.25 
December,  1912  4  12 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  Massachusetts,  Connecticut  and 
Rhode  Island. 


MANCHESTER   &  LAWRENCE  RAILROAD 
Plain  4s 

Dated  January  1,  1892  Maturing  January  1,  1922 

Interest  payable  January  1  and  July  1  at  the  office  of  the  Treasurer  of  the  Boston  &  Maine 

Railroad  Company. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $300,000  Outstanding  $274,000 

Security:  The  above  bonds  are  a  direct  obligation  of  tlie  Manchester  &  Lawrence  Railroad  Corajiany, 

but  are  not  secured  by  a  mortgage. 

These  bonds  are  GUARANTEED  as  to  INTEREST  by  the  Boston  &  Maine  Railroad  Com- 
pany, by  endorsement. 

The  Manchester  &  Lawrence  Railroad  Company  was  chartered  under  the  laws  of  New  Hamp- 
shire, June  30,  1847.  Its  line  was  opened  for  traffic  November  13,  1849.  It  was  leased  to  the  Boston 
&  Maine  Railroad  Company,  September  1,  1887,  for  fifty  years  at  an  annual  rental  ecpiivalent  to 
10%  on  the  company's  capital  stock,  interest  on  its  funded  obligations,  and  $2,000  for  organization 
expenses. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


VERMONT    &   MASSACHUSETTS   RAILROAD 
Plain  Currency  33^s 

Dated  May  1,  190.S  Maturing  May  1,  1923 

Interest  payable  May  1  and  November  1  at  Fitcliliurg  Railroad  Comjiany'.s  office,  Boston. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $1,000. 

Outstanding  $772,000 

Security:  The  above  bonds  are  unsecured  by  mortgage,  but  are  direct  obligations  of  the  companj'. 

[  114] 


These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  under  terms  of  lease 
by  the  Fitchburg  Railroad  Company.  THIS  GUARANTEE  was  ASSUMED  by  the  Boston 
&  Maine  Railroad  Company  under  the  terms  of  its  lease. 

Property:  The  property  of  this  company  consists  of  58.58  miles  of  road  from  Fitchburg  to  Greenfield, 

Mass.,  and  branches. 

The  Vermont  &  Massachusetts  Railroad  was  chartei-ed  May  15,  1844,  under  the  laws  of  Massa- 
chusetts, as  the  result  of  a  consolidation  of  the  Vermont  &  Massachusetts  Railroad  Company  and  the 
Brattleboro  &  Fitchburg  Railroad  Company.  The  road  was  commercially  opened  April  15,  1849. 
On  the  first  of  January,  1874,  it  was  leased  for  a  term  of  999  years  to  the  Fitchburg  Railroad  Com- 
pany, which  guaranteed  interest  on  all  the  company's  outstanding  bonds  and,  as  rental,  6%  on  the 
capital  stock  and  $3,000  for  organization  expenses.  It  is  now  subject,  with  the  Fitchburg  Railroad, 
to  a  lease  by  the  Boston  &  Maine  Railroad  until  1999. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Massachusetts. 


ST.    JOHNSBURY   &   LAKE   CHAMPLAIN    RAILROAD 
First  Mortgage  5s 

Dated  March  1,  1894  Maturing  March  1,  1944 

Interest  payable  March  1  and  September  1  at  Company's  office,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $2,500,000  Outstanding  $1,328,000 

Per  mile  .    .  10,600 

Provisions  of      Of  the  total  amount  authorized,  $1,328,000  are  outstanding  as  above,  $740,000  are  in  the 
issue:  treasury  of  the  Boston  &  Lowell  Railroad  Company,  and  $432,000  are  in  the  treasury  of 

the  Boston  &  Maine  Railroad  Company. 

Security:  The  above  bonds  are  a  first  mortgage  on  the  St.  Johnsbury  &  Lake  Champlain  Railroad  Com- 

pany's line  from  Lunenburg  to  Swanton,  Vt.,  120  miles;  and  Victory  Branch,  North  Concord, 
to  Victory,  Vt.,  5.43  miles,  making  a  total  of  125.43  miles  subject  to  the  above  mortgage. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Boston  & 
Maine  Railroad  Company. 

Trustee:  American  Trust  Company,  Boston. 

The  St.  Johnsbury  &  Lake  Champlain  Railroad  Company  was  chartered  on  January  31,  1880, 
under  the  laws  of  Vermont,  as  the  result  of  the  reorganization  of  the  Vermont  Division  of  the  Port- 
land &  Ogdensburg  Railroad  Company.  A  majority  of  its  capital  stock  is  now  owned  by  the  Boston 
&  Lowell  Railroad,  which  is  leased  to  the  Boston  &  Maine  Railroad  until  1999. 

These  bonds  sold  in  1910  on  a  3.90  to  4.22  basis 
1911  4.30  to  4.70 

December,  1912  4.80  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  Vermont,  Massachusetts 
and  New  Hampshire. 

[  115  ] 


VERMONT   VALLEY   RAILROAD 
First  Mortgage  Gold  43^s 

Dated  October  1,  1910  Maturing  October  1,  1940 

Interest  payable  April  1  and  October  1  at  office  of  the  Boston  Safe  Deposit  &  Trust 
Company,  Boston. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $1,000. 
Authorized  $1,500,000  Outstanding  $1,500,000 

Security:  The  above  bonds  are  a  first  mortgage  on  the  Vermont  Valley  Railroad  Company's  line  from 

Brattleboro  to  Sullivan  River  Bridge,  in  Bellows  Falls,  Vt.,  24  miles.  They  are  further 
secured  by  a  deposit  with  trustee  of  $700,000  Connecticut  &  Passumpsic  River  Railroad 
Company  stock  and  $100,000  Massawippi  Valley  Railway  Company  stock  (upon  which  6% 
dividends  are  guaranteed  by  the  Boston  &  Maine  Railroad). 

Trustee:  The  Boston  Safe  Deposit  &  Trust  Company,  Boston. 

The  Vermont  Valley  Railroad  Company  was  chartered  November  8,  1848,  under  the  laws  of 
Vermont.  The  road  was  commercially  opened  in  1851.  It  is  controlled  by  the  Connecticut  Ri\er 
Railroad  Company,  through  ownership  of  practically  the  entire  capital  stock.  The  Connecticut 
River  Railroad  Company,  in  turn,  is  leased  to  the  Boston  &  Maine  Railroad  until  1992.  The  Ver- 
mont Valley  Railroad  is  operated  by  the  Boston  &  Maine  Railroad  as  agent. 

These  bonds  were  quoted  in  1912  on  a  4.35  basis  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  Massachusetts  and  Con- 
necticut. 


SULLIVAN   COUNTY  RAILROAD 
First  Mortgage  Gold  4s 

Dated  March  31,  1894  Maturing  April  1,  1924 

Interest  payable  April  1  and  October  1  at  office  of  the  Boston  Safe  Deposit  &  Trust 

Company,  Boston. 

Coupon  bonds  of  $1,000,  registerable.     Registered  bonds  of  $1,000. 

Authorized  $400,000  Outstanding  $357,000 

Per  mile  .    .       13,740 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Sullivan  County  Railroad  Company's 

line  from  Bellows  Falls  to  AVindsor,  Vt.,  26  miles.    They  are  also  secured  by  all  the  equipment 
of  the  line  and  future  acquisitions. 

Trustee:  The  Boston  Safe  Deposit  &  Trust  Company,  Boston. 

Tlie  Sullivan  County  Railroad  was  chartered  July  10.  184G,  under  the  laws  of  New  Hampshire. 
It  was  connnercially  opened  February  5,  1849.    The  entire  capital  stock  of  the  company  is  owned 

[  116  ] 


by  the  Vermont  Valley  Railroad,  while  the  Connecticut  River  Railroad  Conijjany,  which  is  leased  to 
the  Boston  &  INIaine  Railroad  until  1992,  owns  practically  the  entire  stock  of  tlie  Vermont  Valley 
Railroad.     The  Sullivan  County  Railroad  is  operated  by  the  Boston  &  Maine  Railroad  as  agent. 

These  bonds  are  considered  a  legal  iavcstment  for  savings  bauks  in  Maine,  Massachusetts  and  Con- 
necticut. 


BOSTON   &   MAINE   RAILROAD 
One-Year  4*^^,  Notes 

Dated  June  10,  1912  Maturing  June  10,  1013 

Interest  payable  December  10  and  June  10  at  Boston. 

Coupon  notes  of  $1,000,  $5,000,  $10,000,  $•25,000  and  $50,000. 
Authorized  $12,000,000  Outstanding  $12,000,000 

Security:  These  notes  are  a  direct  obligation  of  the  Boston  &  Maine  Railroad  Company,  but  are  not 

secured  by  a  mortgage. 

These  notes  were  issued  to  retire  $5,000,000  4%  notes,  maturing  June  15,  1912;  to  reimburse 
the  New  York,  New  Haven  &  Hartford  Railroad  Company  for  advances  of  $3,000,000,  and 
$4,000,000  for  further  extensions  to  property. 

These  notes  were  offered  in  June,  1912,  at  99J^|  and  interest. 


[  117  ] 


BOSTON,  REVERE  BEACH  &  LYNN  RAILROAD  COMPANY 


BOSTON,  REVERE  BEACH  &  LYNN  RAILROAD  COMPANY 


HISTORY 

The  Boston,  Revere  Beach  &  Lynn  Raih-oad  was  incorporated  May  23,  1874,  under  the  Laws  of 
Massachusetts.  Its  road  was  opened  from  East  Boston  to  Lynn,  July  29,  1875.  In  July,  1891,  the 
company  absorbed  the  Boston,  Winthrop  &  Shore  Railroad  Company,  owning  a  line  from  East 
Boston  to  Winthrop,  Massachusetts. 

PROPERTY 

The  company  operates  a  narrow  gauge  railroad  from  East  Boston  to  Lynn  and  a  branch  to  Win- 
throp. Connecting  Boston  proper  with  its  terminal  in  East  Boston,  is  a  line  of  ferries  owned  and 
operated  by  the  company.  The  company's  mileage,  operated  June  30,  1912,  consisted  of  13.2  miles 
of  main  line,  all  of  which  is  double  tracked. 

The  company's  equipment,  as  of  June  30,  1912,  included  the  following  pieces: 

Passenger  locomotives 23 

Passenger  cars      75 

Combination  cars 17 

Company  cars 28 

Total  equipment  owned      ....      143 
Besides  the  above,  the  company  operated  four  ferries  hi  its  steamboat  service. 


CAPITALIZATION 

The  company's  capitalization  at  the  close  of  its  fiscal  year,  June  30,  1912,  was  as  follows: 

Capital  stock      $850,000 

Funded  debt 850,000 

Gross  capitalization $1,700,000 

Capital  per  mile  operated     ....  $128,788 

Average  miles  operated 13.2 

Net  income  to  net  capital    ....  7.1% 

Fixed  charges  to  net  income    .    .    .  57.7% 

Margin  of  safety 42.3% 

The  company's  authorized  capital  slock  is  $1,125,000,  of  which  $850,000,  or  $64,394  per  mile 
of  line,  is  outstanding.  The  authorized  funded  debt  of  the  company  amounts  to  $1,000,000,  $850,000 
of  which  is  outstanding,  or  $64,394  per  mile  of  line. 

[  121  ] 


To  offset  tliese  capital  liabilities,  the  company  reports  a  road  and  equipment  account,  as  of  June 
30,  1912,  of  $2,076,697.  This  represents  a  cost  per  mile  of  line  of  $157,424.  This  leaves  an  equity  in 
the  property,  over  and  above  all  capital  obligations,  of  nearly  $27,640  per  mile. 

The  ratio  of  net  income  to  net  capital  was  remarkably  steady  during  the  five  years  ending  1912, 
averaging  for  the  period  7.1%.  The  company's  fixed  charges  consumed  57.7%  of  its  total  net 
income,  leaving  a  margin  of  safety  for  the  interest  on  its  bonds  of  42.3%  —  a  very  satisfactory  show- 
ing, especially  since  the  average  for  the  decade  was  in  the  neighborhood  of  40%. 


CHARACTER    OF   TRAFFIC 

The  company's  traffic  is  almost  entirely  passenger.  Its  business  is  especially  heavy  during  the 
summer  months,  caring  as  it  does  tor  the  summer  resorts  that  dot  the  coast  between  Boston  and 
Lynn,  especially  the  two  popular  beaches  at  Revere  and  Winthrop,  Massachusetts. 

It  will  be  noted  in  the  following  table  that  the  company's  passenger  density,  and,  correspond- 
ingly, passenger  earnings,  show  material  increases  since  1907. 

Year  Passenger  Average  distance  Passenger  Average  rate  per 

density  carried  per  passenger  earnings  passenger  per  mile 

1907 5,840,101  5.86  miles  $799,561  $.0104 

1908 6,014,184  5.48  812,967  .0102 

1909 6,289,462  4.93  841.988  .0100 

1910 6,372,580  4.80  865,940  .0103 

1911 6,618,194  4.81  898,627  .0103 

1912 6,853,795  4.81  930,059  .0103 


EARNINGS 

With  the  exception  of  nominal  amounts  received  as  rentals  of  property  and  for  miscellaneous 
items,  the  company's  gross  earnings  depend  entirely  on  the  passenger  traffic.  Both  gross  and  net 
earnings  show  substantial  increases,  the  former  gaining  16.2%  and  the  latter  15.1%  in  the  six  years 
ending  June  30,  1912. 


Year 

Miles 

Gross 

Per  mile 

Net 

Per  mile 

Operating 

operated 

earnings 

earnings 

ratio 

1907 

.    13.2 

$819,072 

$62,051 

$105,581 

$7,999 

89.23% 

1908 

.   13.2 

834,020 

63,183 

123,415 

9,350 

87.43 

1909 

.   13.2 

863,475 

65,415 

121,533 

9,207 

85.92 

1910 

.   13.2 

887,888 

67,264 

119,950 

9,088 

86.49 

1911 

.   13.2 

919,920 

69,690 

122,502 

9,280 

86.68 

1912 

.   13.2 

951,891 

72,113 

121,848 

9,231 

87.10 

The  company  reports  a  rather  high  operating  ratio.  The  reason  for  this,  it  would  seem,  lies  in 
the  cost  of  conducting  transportation.  During  the  winter  months  trains  are  run  at  a  loss  —  a  lim- 
ited number  of  commuters  using  them.  They  have  to  be  maintained,  however,  the  loss  being  offset 
by  the  large  profits  of  the  summer  months.  Following  are  the  ratios  of  expense  to  earnings  for  the 
six  years  ending  June  30,  1912. 


[  122  ] 


1907 
1908 
1909 
1910 
1911 
1912 


Maintenance 
to  gross  earnings 

27.4% 

Conducting 
transportation 
to  gross  earnings 

01.8% 

62.1 

59.2 

59.4 

62.3 

63.5 

Total  expenses 
to  gross  earnings 

89.2% 
87.4 

.     25.3 

27.3 

85.9 

27.1 

86.5 

.     24.4 

86.7 

.      24.6 

87.1 

MAINTENANCE 

During  the  six  years  ending  1912  the  company  spent  out  of  its  total  gross  earnings  of  $5,267,000, 
$1,339,000  for  maintenance  of  way  and  equipment,  an  average  of  $223,170  per  year,  or  $16,906 
annually  per  mile  of  road  operated. 

Below  are  given  the  amounts  spent  for  upkeep,  also  figured  on  a  per  mile  basis,  for  the  years 
1907  to  1912  inclusive: 


Year  Maintenance 

Way  Equipment 

1907 $92,507  $115,302 

1908 85,407  107,050 

1909 132,735  97,851 

1910 128,286  111,466 

1911 146,232  77,487 

1912 92,851  131,750 


Total 

Per  mile 

maintenance 

$217,809 

$15,743 

192,452 

14,580 

230,586 

17,469 

239,752 

18,162 

223,719 

16,948 

224,601 

17,015 

ADDITIONS  AND   BETTERMENTS 

Under  the  ruling  of  the  Interstate  Commerce  Commission,  and  one  which  applies  under  the 
rulings  of  the  Board  of  Railroad  Commissioners  of  Massachusetts,  the  Boston,  Revere  Beach  &  Lynn 
Railroad  reports  on  its  balance  sheet  of  June  30,  1912,  $43,156  spent  for  additions  and  betterments 
to  property  since  June  30,  1907.    This  is  divided  as  follows: 


Year 

Amount 

1908   .    . 

$100 

1909   .    . 

12,114 

1910   .    . 

16,137 

1911   .    . 

11,474 

1912   .    . 

3,331 

$43,156 


[  123 


DIVIDENDS 

Since  1900  dividends  have  been  paid  as  follows: 

Year  Rate 

1900-05  ....  2% 

1906 4 

1907 5 

1908-12  ....  6 

The  company's  surplus  stood  on  its  balance  sheet  of  June  30,  1912,  at  $70,089.    This  is  equiva- 
lent to  8.2%  of  the  company's  outstanding  capital  stock. 

STATISTICS 

Following  are  the  capitalization,  earnings  and  traffic  statistics  of  the  Boston,  Revere  Beach  & 
Lynn  Railroad,  based  on  the  average  miles  operated,  for  the  years  1905  to  1912  inclusive. 


[  124 


BOSTON,   REVERE  BEACH   &   LYNN   RAILROAD 


Fiscal 

Capital 

Funded 

Gross 

Average 

Extra  main 

year 

stock 

debt 

capital 

miles 
operated 

13.2 

track 

1905 

$64,394 

$64,394                        $ 

128,788 

13.2 

1906 

64,394 

64,394 

128,788 

13.2 

13.2 

1907 

64,394 

64,394 

128,788 

13.2 

13.2 

1908 

64,394 

64,394 

128,788 

13.2 

13.2 

1909 

64,394 

64,394 

128,788 

13.2 

13.2 

1910 

64,394 

64,394 

128,788 

13.2 

13.2 

1911 

64,394 

04,394 

128,788 

13.2 

13.2 

1912 

64,394 

64,394 

128,788 

13.2 

13.2 

Fiscal 

Gross  operating 

Main 

cnance 

Transportation 

Net 

Fixed 

Surplus  avail- 

year 

revenue 

and  general 

operating 

charges 

able  for 

Way 
$5,397 

Equipment 

expense 

revenue 

$4,574 

1905 

$49,590 

$9,084 

$29,166 

$5,943 

$1,369 

1906 

56,637 

4.716 

11,204 

33,352 

7,365 

4,711 

2,654 

1907 

62,051 

7,008 

8,735 

38,309 

7,999 

4,682 

3,317 

1908 

63,183 

6.470 

8.110 

39,253 

9,350 

5.404 

3,946 

1909 

65,415 

10,056 

7,413 

38,739 

9,207 

5,204 

3,943 

1910 

67,264 

9,718 

8,444 

40,014 

9,088 

5,120 

3.968 

1911 

69,690 

11,078 

5,870 

43,462 

9.280 

5,271 

4,009 

1912 

72,113 

7,034 

9,981 

45,867 

9,231 

5.300 

3,931 

Fiscal 

Dividends 

Surplus 

Operating 

Total 

Conducting 

Fixed 

Gross  earn- 

Net in- 

Per cent 

year 

expense 

maintenance 

transporta- 

charges 

ings  to 

come 

earned  on 

to  gross 

to  gross 

tion  to  gross 

to  gross 

gross 

to  net 

capital 

$81 

carnmgs 

eammgs 

earnings 

earnings 

capital 

38.5% 

capital 
4.6% 

stock 

1905 

$1,288 

90.56% 

31.8% 

58.8% 

9.2% 

2.1% 

1906 

2,576 

78 

90.38 

31.5 

58.9 

8.3 

43.9 

5.7 

4.1 

1907 

3,220 

97 

89.23 

27.4 

61.8 

7.5 

48.1 

6.2 

5.1 

1908 

3,863 

83 

87.43 

25.3 

62.1 

8.5 

48.9 

7.2 

6.1 

1909 

3,863 

80 

85.92 

26.7 

59.2 

8.0 

50.7 

7.1 

6.1 

1910 

3,863 

105 

80.49 

27.1 

59.4 

7.6 

52.2 

7.0 

6.2 

1911 

3,863 

140 

86.68 

24.4 

62.3 

7.5 

54.0 

7.2 

6.2 

1912 

3,863 

68 

87.10 

24.6 

63.5 

7.3 

56.0 

7.1 

6.1 

Fiscal 

Train 

Maintenance 

Conducting 

Train 

Rate  per 

Passenger 

Passenger 

year 

mile  earnings 

per  revenue  train 

transportation 

mile 

mile  per 

density 

and 

(gross) 

Way 
$.100 

mile 

Equipment 
$.168 

per  revenue 

earnings 
(net) 

passenger 

company 
cars 

1905 

$.8934 

$.541 

$.086 

$.0105 

4,607,367 

97 

1906 

.9146 

.078 

.185 

551 

.100 

.0103 

5,352,896 

108 

1907 

.8683 

.100 

.125 

549 

.094 

.0104 

5,840,101 

116 

1908 

.9354 

.098 

.123 

596 

.118 

.0102 

6,014,184 

114 

1909 

.9622 

.151 

.112 

584 

.115 

.0100 

6,289,462 

114 

1910 

.9372 

.137 

.120 

571 

.109 

.0103 

6,372.580 

110 

1911 

.9904 

.157 

.083 

607 

.143 

.0103 

6,618,194 

120 

1912 

1.0072 

.098 

.1.39 

640 

.130 

.0103 

6,853,795 

120 

[  125  ] 


BOND   DESCRIPTION 

Following  is  a  description  of  the  funded  debt  of  the  Boston,  Revere  Beach  &  Lvnn  Railroad: 


BOSTON,   REVERE  BEACH   &  LYNN   RAILROAD 
First  Mortgage  43/2S 

Dated  July  15,  1897  Maturing  July  15,  1927 

Interest  payable  January  15  and  July  15  at  State  Street  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal.    Registered  bonds  of  $1,000. 
Coupon  and  registered  bonds  interchangeable. 

Authorized  $1,000,000  Outstanding  $850,000 

Per  mile.    .       64,394 

Provisions  of      Besides  the  bonds  outstanding  as  above,  $150,000  have  been  reserved  for  betterments  and 
issue:  improvements,  with  restrictions. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  entire  property  of  the  company. 

Trustee:  State  Street  Trust  Company,  Boston. 

These  bonds  were  quoted  in  December,  1912,  on  a  4.62  basis  (bid). 

They  are  considered  a  legal  investment  for  savings  banks  in  Massachusetts. 


[  1^28  ] 


CENTRAL  RAILROAD  COMPANY  OF  NEW  JERSEY 


CENTRAL  RAILROAD  COMPANY  OF  NEW  JERSEY 

The  Central  Railroad  of  New  Jersey  is  not  an  independent  road,  but  in  reality  simply  the  east- 
ern division  and  the  New  York  terminus  of  the  Reading  System.  In  the  annual  report  of  the  Read- 
ing Company  for  the  fiscal  year  ending  June  30,  1911,  the  company  owned  145,040  of  the  274,380 
shares  of  stock  outstanding  of  the  Central  Railroad  Company  of  New  Jersey.  This  control  was  ac- 
ciuired  in  1901,  the  Reading  Company  paying  $160  per  share.  The  road  is  operated  in  so  close 
association  with  the  parent  companj'  as  to  make  it  to  all  intents  a  part  of  the  larger  system. 

HISTORY 

The  Central  Railroad  Company  was  chartered,  February  22,  1849,  under  the  laws  of  the  State 
of  New  Jersey,  as  the  result  of  the  consolidation  of  the  Elizabeth  &  Somerville  Railroad  Company 
and  the  Somerville  &  Easton  Railroad  Company.  The  road  was  opened  to  Philipsburg,  New  Jersey, 
on  the  second  of  July,  1852,  and  was  extended  to  Jersey  City,  New  Jersey,  in  1864.  The  branch 
from  Elizabeth  to  Newark  was  opened  in  1872. 

On  subsequent  dates  the  company  absorbed  the  Newark  &  New  York  Railroad  Company, 
the  Perth  Amboy  &  Elizabeth  Railroad  Company,  the  Constable's  Hook  Railroad  Company, 
the  Manufacturers"  Railroad  Company,  the  South  Branch  Railroad  Company,  the  High  Bridge 
Railroad  Company,  the  Longwood  Valley  Railroad  Company,  and  the  Lake  Hopatcong  Railroad 
Company. 

The  Central  Railroad  Company  of  New  Jerse.\'  also  controls  and  operates  jointly  with  the 
Pennsylvania  Railroad,  by  lease,  the  New  York  &  Long  Brancli  Railroad  Company.  It  controls, 
through  ownership  of  a  majority  of  its  capital  stock,  the  Lehigh  &  Wilkes-Barre  Coal  Company. 

In  December,  1905,  the  Central  Railroad  Company  of  New  Jersey  acquired  the  entire  fleet  of 
the  Manliattan  Lighterage  &  Transportation  Company,  consisting  of  thirty-four  barges,  one  steam 
lighter,  and  three  tugs,  and  also  purchased  from  the  Harbor  Transportation  Company  a  fleet  of  eight 
lighters.  To  operate  this  combinetl  fleet,  the  :Manhattan  Lighterage  Company  was  organized,  all 
the  capital  stock  being  held  by  the  Central  Railroad  Company.  To  control  certain  terminal  storage 
facilities  in  Newark,  New  Jersey,  the  Newark  Warehouse  Company  was  organized  and  has  erected  a 
warehouse  six  stories  high  to  care  for  freight  traffic  and  to  be  used  for  storage  purposes. 

PROPERTY 

On  June  30,  1912,  the  company  operated  a  total  of  669.43  miles  of  road.  156.15  miles  are  owned 
in  fee,  224.50  miles  represent  the  mileage  of  companies  controlled  by  stock  ownership,  214.6  miles 
are  controlled  by  leases  and  36.14  miles  by  trackage  rights.  The  trackage  of  the  New  York  & 
Long  Branch  Railroad  Company  has  been  operated  separately,  under  an  agreement  between  the 
Central  Railroad  Company  and  the  Pennsylvania  Company  until  the  fiscal  year  1912. 

The  most  important  part  of  this  road  extends  from  Jersey  City  through  eastern  Pennsylvania 
to  Scranton,  in  the  heart  of  the  anthracite  coal  region.     Another  important  division  extends  .south- 

[  131  ] 


ward,  centrally  through  New  Jersey,  to  a  double  terminal  on  Delaware  Bay.    About  40%  of  the  road 
is  double  tracked. 


nient  is  reported : 


he  company  tor  the 

nscal  year  en 

dnig  June 

Locomotives  .    . 

490 

Cars 

Passenger 

657 

Freight      .    . 

.     22,015 

Company 

758 

Total 

23,430 

Leased  equipment 

10 

Marine  equipment 

Steamboats  . 

3 

Ferry  boats  . 

9 

Tug  boats 

12 

Car  floats 

28 

Coal  barges  . 

15 

Total 

67 

Total  equipment 

23,997 

CAPITALIZATION 


The  capital  account  of  the  Central  Railroad  of  New  Jersey  at  the  close  of  business  June  30,  1912, 
stood  as  follows: 

Capital  stock $27,436,800 

Funded  debt 47,848,000 

Nominal  capital $75,284,800 

Rentals  capitalized  @  5% 51,611,460 

Gross  capitalization      $126,896,260 

Securities  owned 14,006,222 

Net  capitalization $112,890,038 

Net  capital  per  mile  operated $168,745 

Average  miles  operated 669.43 

Net  income  to  net  capital 11.3% 

Fixed  charges  to  net  income 52.8% 

Margin  of  safety 47.2% 

From  the  foregoing  it  would  seem  that  the  company's  net  capitalization  per  mile  of  road  operated 
was  very  high.  The  average  of  this  figure  for  the  decade  ending  1912  is  practically  the  same  and  com- 
pares with  two  properties  situated  in  similar  territory,  and  working  under  somewhat  similar  trans- 
portation conditions,  as  follows : 

Lackawanna $149,892 

Lehigh  Valley •      70,376 

However,  when  the  capitalization  figures  are  compared  with  the  earning  capacities  of  the  roads 
in  question,  it  appears  that  the  Central  Railroad  carried  its  capitalization  with  great  ease.    During 

[  132  ] 


the  ten  years  ending  June  30,  1912,  the  net  income  on  this  heavy  net  capital  has  averaged  10.8%,  which 
demonstrates  the  stable  earning  capacity  of  this  system.  For  the  same  period  the  Lehigh  Valley 
earned  13.6%  on  a  capitalization  nearly  $100,000  per  mile  less  than  that  of  the  Central  Railroad. 
The  Lackawanna  with  earnings  of  15.8%  on  its  average  net  capitalization  of  slightly  vmder  $150,000 
per  mile,  was  the  only  system  whose  showing  is  to  be  compared  with  that  of  the  "Jersey  Central," 
as  it  is  familiarly  known. 

It  is  also  important  to  note,  in  the  case  of  the  Central  Railroad,  that,  although  over  three 
quarters  of  its  capitalization  is  represented  by  forms  of  indebtedness  which  are  fixed  charges  upon 
the  system,  the  high  earnings  reported  in  the  past  have  enabled  the  company  to  increase  its  net 
corporate  income  to  an  amount  equivalent  to  nearly  twice  these  fixed  charges,  thereby  leaving  a 
large  margin  of  safety  in  earnings  for  the  interest  on  the  company's  bond  issues. 

It  is  of  interest  to  note,  top,  that  since  1900  there  has  been  but  a  slight  increase  in  capitalization, 
while  earnings  have  shown  a  remarkable  growth,  as  will  be  seen  by  the  following  table: 

Year  Stock  Funded  debt  Total  Gross  earnings 

1901  $27,411,800  $46,505,000  $73,916,800  $15,286,708 

1912  27,436,800  47,848,000  75,284,800  25,890,094 


Capital  increase $1,368,000 

Per  cent,  increase 2% 

Gross  earnings  increase $10,603,386 

Per  cent,  increase 69% 


CHARACTER   OF   TRAFFIC 


The  reports  of  the  Central  Railroad  of  New  Jersey  are  in  many  respects  incomplete  and  unsatis- 
factory. The  reports  of  traffic  statistics,  especially,  are  exceedingly  meagre.  No  table  of  tonnage 
transported  is  furnished,  but  the  road  is  known  to  depend  to  a  large  degree  upon  the  transportation 
of  hard  coal.  It  taps  the  great  hard  coal  region  of  Pennsylvania  and  is  said  to  own  about  17%  of  all 
the  unexhausted  anthracite  deposits  of  that  state.  It  has  been  estimated  that  the  company  controls 
1,214,500,000  tons  of  minable  coal.  Of  it,  it  has  been  said,  "  At  the  present  rate  of  production,  these 
deposits  promise  to  supply  traffic  for  the  Jersey  Central  for  nearly  two  and  one  half  centuries." 

During  the  last  decade  the  ratio  of  freight  to  all  traffic  has  averaged  77%.  This  figure  has 
declined  since  1905  from  80%  to  73%.  About  one-half  of  this  freight  business  is  represented  by 
the  one  item  of  coal  transportation.  In  fact,  the  proportion  of  coal  to  the  entire  traffic  of  the  road 
was  37%  during  that  time.  Tabulated  below  are  the  ratios  of  commodities  carried  to  total  amount 
of  business  done  for  the  six  years  ending  June  30,  1912. 


19H 

1911 

1910 

1909 

1908 

1907 

Merchandise    .    . 

.        41.9% 

40.6% 

42.0% 

38.1% 

37.0% 

40.7% 

Anthracite    .    .    . 

31.6 

34.9 

33.7 

37.0 

40.2 

37.4 

Passenger      .    .    . 

21.1 

19.2 

18.9 

19.2 

18.9 

18.6 

Other 

5.4 

5.3 

5.4 

5.7 

3.9 

3.3 

100.0%       100.0%        100.0%       100.0%        100.0%  100.0% 


[  133  ] 


EARNINGS 

Following  are  the  gross  and  net  earnings  of  the  road,  also  figured  on  the  average  miles  operated, 
for  the  fiscal  years  ending  June  30,  1907  to  1912  inclusive.  This  table  has  been  compiled  from  the 
annual  reports  of  the  company. 


Year 

.\verage  mile 

s              Gross 

Per  mUe 

Net 

Per  mile 

Operating 

operated 

earnings 

earnings 

ratio 

1907 

.    .     610 

.$22,772,568 

$37,332 

$10,913,626 

$17,891 

52.1% 

1908 

,    .     610 

22,614,936 

37,073 

9,453,257 

15,497 

58.2 

1909 

.    .     610 

22,068,279 

36,178 

9,507,761 

15,587 

56.9 

1910 

.    .     631 

23,851,511 

37,800 

10,583,028 

16,772 

55.6 

1911 

.    .     634 

24,799,235 

39,115 

10,600.239 

16.719 

57.2 

1912 

.     669 

25,890,094 

38,699 

10,533,014 

15,744 

59.3 

As  was  the  case  witli  mo.st  of  the  railroads  of  the  country,  1907  proved  a  banner  earning  year 
for  the  Jersey  Central.  The  gross  earnings  of  that  year,  with  no  increase  in  average  miles  operated, 
were  the  largest  ever  reported  by  the  company  and  greater  by  $2,200,000  than  those  reported  for  the 
fiscal  year  of  1906.  That  this  splendid  record  was  maintained  through  the  relatively  poorer  years  of 
1908  and  1909  was  quite  remarkable.  To  be  sure,  the  operating  ratios  for  those  two  years  rose  con- 
siderably, but  this  was  due,  not  to  increased  cost  of  conducting  transportation,  but  to  large  increases 
in  charges  to  upkeep,  both  of  equipment  and  way. 

Gross  earnings  in  1910  increased  over  $1,000,000  over  the  high  figures  of  1907,  with  but  a  twenty- 
mile  increase  in  miles  operated,  and  during  the  fiscal  year  of  1911  gross  earnings  rose  nearly  $1,000,000, 
with  but  a  three-mile  increase  in  miles  operated.  The  ratio  of  expenses  to  earnings  has  increased 
since  1910,  due  to  an  increase  in  costs  of  conducting  transportation.  The  1912  figures  include  the 
mileage  and  earnings  of  the  New  York  &  Long  Branch  Railroad  Company. 

MAINTENANCE 

During  the  last  six  years  the  Jersey  Central  has  been  sjjending,  for  maintenance  of  way  and 
equipment,  an  amount  equivalent  to  over  $9,360  per  mile.  Below  are  given  the  amounts  spent, 
figured  on  the  basis  of  miles  operated,  for  the  years  1907  to  1912  inclusive;  also  the  average  amount 
spent  during  the  period  in  question  and  a  comparison  of  this  latter  figure  with  the  same  relative 
figures  of  the  Delaware,  Lackawanna  &  Western  and  Lehigh  Valley  Railroads: 

Maintenance 
Year  Way  Equipment  Total 

1907 $3,145  $4,517  $7,662 

1908 3,970  5,960  9,930 

1909 3,535  6,027  9,562 

1910 3,343  6,115  9,458 

1911 3,941  5,888  9,829 

1912 3,984  5,726  9,710 

Average  for  period 

Central $3,654  $5,706  $9,360 

Lackawanna* 4,920  6,029  10,949 

Lehigh  Valley  *      2,365  4,162  6,527 

*   1907-1911. 

[  134  ] 


ADDITIONS   AND   BETTERMENTS 

In  addition  to  generous  sums  spent  for  maintenance,  the  Central  Railroad  Company  has  pro- 
vided large  sums  out  of  surplus  for  additions  and  betterments.  In  each  of  the  years  1908  and  1909, 
$^2,000,000  was  set  aside  from  income  for  this  purpose;  in  1910,  $1.,000,000;  in  1911,  $3,000,000, 
and  for  the  fiscal  year  ending  June  30,  1912,  $2,000,000. 

The  annual  reports  of  the  company  show  the  following  exi)enditures  made  and  charged 
against  this  Addition  and  Betterment  Fund  since  1907: 

Year  Amount 

1908 $1,023,692 

1909 338,215 

1910 3,615,179 

1911 2,588,505 

1912  3,611,557 

Total $11,177,148 

DIVIDENDS 

Since  1890  the  company  has  earned  and  paid  the  following  dividends: 

Year  Rate  Year  Rate 

1890 6%  1899 i}4 

1891 Q^4  1900 5 

1892-4 7  1901 534 

1895-6 5  1902-9 8 

1897-8 1  1910-12 12* 

On  the  general  balance  sheet  of  the  company  for  the  fiscal  year  ending  June  30,  1911,  the  Profit 
and  Loss  Account,  which  represents  surplus  earnings  of  past  years,  stood  at  $13,969,878,  or  50% 
of  the  total  amount  of  capital  stock  outstanding  at  that  time.  In  connection  with  the  Reading  con- 
trol of  this  remarkable  anthracite  road,  it  is  interesting  to  note  just  how  profitable  it  has  proved  to 
its  owner  and  approximately  how  it  has  handled  its  surplus  earnings.  It  was  in  1901  that  the  Reading 
l)ought  its  control,  which  represents  53%  of  the  total  stock  outstanding,  and  paid  in  the  neighborhood 
of  $160  a  share  or  about  $23,200,000. 

Since  that  time,  and  including  1912,  with  earnings  of  over  21%,  the  Jersey  Central  produced  the 
following  surplus  earnings  over  and  above  all  charges: 


Year 

Surplus 

1902  .  .  . 

.  .  .   $3,051,868 

1903  .  .  . 

.  .  .   2,134,796 

1904  .  .  . 

.  .  .   4,326,203 

1905  .  .  . 

.  .  .   5,032,405 

1906  .  .  . 

.  .  .   5,659,705 

1907  .  .  . 

.  .  .   5,782,879 

1908  .  .  . 

.  .  .   5,123,473 

1909  .  .  . 

.  .  .   4,537,988 

1910  .  .  . 

.  .  .   9,103,899t 

1911  .  .  . 

.  .  .   7,148,101 

1912  .  .  . 

.  .  .   6,009,072 

Total.  .  . 

.  .  .  $57,910,388 

*  Includes  au  extra  -ISc  annuallv  |)aid  from  dividends  received  from  the  Lehigh  and  Wilkes-Barre  Coal  Compan 
t  Includes  the  pro6t  on  Lehigh'Valley  Stock  estimated  at  $1,840,000. 

[  135  ] 


This  accuiniilation  of  surplus  is  equivalent  to  211%  of  the  capital  stock  of  the  company  out- 
standing. The  Jersey  Central  paid,  to  June  30,  1912,  just  100%  in  dividends  since  the  Reading 
bought  control.  A  balance  of  $30,473,588,  therefore,  or  the  equivalent  of  111%,  has  gone  back  into 
the  property.    The  Reading  Company  has,  indeed,  every  reason  to  be  satisfied  with  its  investment. 

STATISTICS 

Following  are  given  ca])italization,  earnings,  and  traffic  statistics  of  the  Central  Railroad  of  New 
Jersey,  based  on  the  average  miles  operated,  for  the  year  1900  and  for  the  years  1905  to  1912  inclusive. 
In  the  following  table,  the  mileage  and  earnings  of  the  New  York  &  Long  Branch  Railroad  are 
included  in  1912.     Prior  to  that,  its  net  earnings  were  included  in  "Other  Income." 


[  136  ] 


CENTRAL   RAILROAD    OF   NEW    JERSEY 


Fiscal 

Comnior 

Funded 

Re 

ntals 

Gross              Owned  by 

Net 

Average 

Extra  main 

year 

stock 

debt 

@5% 

capital              cc 
$177,566            $ 

mpany 

capital 
$136,326 

miles 
642 

track 

1900 

$42,390 

$72,564 

$62,612 

41,270 

289 

1905 

45,557 

83,656 

83,997 

213, 

no 

36,193 

177,017 

602 

296 

1900 

44,970 

83,500 

78,242 

206,712 

38,247 

168,465 

610 

296 

1907 

44,978 

88,951 

90,662 

224,591 

41,857 

182,734 

610 

296 

1908 

44,978 

86,641 

76,809 

208,428 

40.899 

167,529 

610 

296 

1909 

44,978 

84,379 

81,804 

211,161 

33,702 

177,459 

610 

296 

1910 

43,481 

79,664 

68,694 

191.839 

21,996 

169,843 

631 

296 

1911 

43,275 

77,378 

79,848 

200,501 

22,039 

178,462 

634 

296 

1912 

41,012 

71,522 

77,147 

189,681 

20,936 

168,745 

669 

334 

Fiscal 

Gross 

Maintenance               Transporta- 

Net 

Other 

Total 

Fixed 

Surplus 

year 

operating 

tion  and 

operating 

income 

net 

charges 

available 

revenue 

Way          Equipment            general 

revenue 

income 

for 

expense 

dividends 

1900 

$23,566 

$2,059          $2,705              $9,378 

$9,424 

$2,087 

$11,511 

$7,431 

$4,080 

1905 

31,991 

2.818            3.754                9,999 

15,420 

2,601 

18,021 

9,662 

8,359 

1906 

33,646 

2,850            4.219              10,402 

16,175 

2,634 

18,809 

9,529 

9,280 

1907 

37,332 

3,145            4,517              11,779 

17,891 

2,927 

20.818 

11,338 

9,480 

1908 

37,073 

3.970            5 

960               11,646 

15,497 

3,442 

18,939 

10,540 

8,399 

1909 

36,178 

3,535            6,027              11,029 

15,587 

2,340 

17,927 

10,488 

7,439 

1910 

37,800 

3,343            6.115              11.570 

16,772 

7.452* 

24,224 

9,798 

14,426 

1911 

39,115 

3,941            5 

888               12, 

367 

16,719 

4.018 

20,736 

9,461 

11,275 

1912 

38,099 

3,984            5 

726              13,245 

15,744 

3,303 

19,047 

10,066 

8,981 

Fiscal 

Divi-            Other         Surplus 

Operating 

Total 

Conducting       Fixed 

Gross 

Net 

Per  cent 

Freight 

year 

dends          charges  to 

expenses        maintenance 

transporta 

-     charges 

earnings     income 

earned 

to  all 

incc 

me 

to  gross 

to  gross 

tion  to  gross    to  gross 

to  gross 

to  net 

on  stock 

traffic 

earnings 

earnings 

earnings 

earnings 
31.5% 

capital 

13.2% 

capita 
8.5^ 

1900 

$2,112 

$1,968 

60.0% 

20.3% 

39  7% 

7o        9.5% 

76% 

1905 

3,644 

4,715 

51.8 

20.6 

31.2 

30.2 

15.0 

10.2 

18.3 

80 

1906 

3,598        $5,531            2,151 

51.9 

21.0 

30.9 

28.3 

16.2 

11.2 

20.6 

80 

1907 

3,598          5,757               125 

52.1 

20.5 

31.6 

30.3 

16.6 

11.3 

21.0 

78 

1908 

3,598          3,7 

-1            1,030 

58.2 

26.8 

31.4 

28.4 

17.8 

11.3 

18.6 

77 

1909 

3,598          3,2 

79               562 

56.9 

26.4 

30.5 

28.9 

17.1 

10.1 

16.5 

75 

1910 

5,217          6,340            2,869 

55.6 

25.0 

■30.6 

25.8 

19.6 

14.2 

33.1* 

76 

1911 

5,193          4,7 

52            1,3,50 

57.2 

25.1 

32.1 

24.2 

19.5 

11.6 

25.7 

75 

1912 

4,921          2,989            1,071 

59.3 

25.1 

34.2 

26.0 

20.3 

11.3 

29.1 

73 

Fiscal 

Train 

Maintenance  per       Conducting 

Train 

Rat 

e  per  mile 

Freight 

Frain  load 

'assenger. 

year 

mile 

evenue  train  mi 

e    transportation      mile 

density 

revenue 

freight 

earnings 

per  revenue 

eammgs      Freight 

Passenge 

tons         and  company 

(gross)           Way     Equipment       train  mile 
$2.28          $.190        $.249              $.600 

(net) 
$1.14 

cars 

1900 

$.0094 

$.0157 

$1,972,135 

399 

$17,674 

1905 

2.63 

.378 

530 

822 

1.30 

.0083 

.0146 

3,077, 

570 

507 

20,184 

1906 

2.68 

.231 

342 

843 

1.31 

.0084 

.0145 

3,150,263 

519 

20,044 

1907 

2.83 

.238 

342 

893 

1.36 

.0084 

0145 

3,462,722 

519 

22,670 

1908 

2.84 

.303 

450 

888 

1.19 

.0084 

.0141 

3,391,298 

522 

22,446 

1909 

3,240,677 

517 

21,359 

1910 

3,386,619 

519 

23,299 

1911 

542 

23,210 

1912 

514 

23.440 

Due  to  special  profits  from  sale  of  Lehigh  Valley  stock. 

[  137  ] 


BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Central  Railroad 

System  of  New  Jersey,  together  with  the  bases  upon  which  they 

have  sold   during  the   decade  ending  December  31,   1912: 


CENTRAL   RAILROAD    COMPANY   OF   NEW    JERSEY 
General  Mortgage  5s 

Dated  July  1,  1887  Maturing  July  1,  1987 

Interest  payable  January  1  and  July  1  at  the  Liberty  National  Bank,  New  York. 

Registered  interest  January  1,  April  1,  July  1  and  October  1. 

Coupon  bonds  of  $1,000,  fully  registerable. 
Registered  bonds  of  $500,  $1,000,  $5,000,  $10,000  and  $50,000. 

Authorized  $50,000,000  Outstanding  $45,091,000 

Per  mile  .    .  121,200 

Security :  The  above  bonds  are  secured  by  a  lien  by  a  direct  first  mortgage  or  by  deposit  with  the  trustee 

of  the  stock  of  several  subsidiary  companies.  The  bonds  are  secured  by  a  direct  first  mortgage 
on  156.59  miles  of  road,  96.16  miles  of  second  track,  lands,  buildings,  terminals  at  Jersey  City, 
leaseholds,  equipment,  etc.  They  are  secured  by  a  first  collateral  lien  by  deposit  of  securities 
aggregating  $18,855,200  par  value  and  covering  215.42  miles  of  road  in  New  Jersey,  including 
the  line  from  Long  Branch  to  Bay  Side  with  branches  to  Bivalve,  Barnegat  and  Freehold,  N.  J. 

The  Reading  Company,  which  owns  $14,500,000  stock  of  the  Central  Railroad  Company  of 
New  Jersey,  and  has  deposited  the  same  to  secure  its  Reading  Company-Jersey  Central  Col- 
lateral Trust  4s  of  1951,  covenants,  in  its  indenture,  to  pay  the  principal  and  interest  of  every 
bond  or  obligation  of  any  company  a  majority  of  whose  shares  is  pledged  under  the  said 
Collateral  4s. 

Trustee:  Central  Trust  Company  of  New  York. 


The  above  bonds  sold  in  1902  on 

a  3.50  t, 

D  3.75  basis 

1903 

3.70 

3.95 

1904 

3.62 

3.87 

1905 

3.60 

3.75 

1906 

3.70 

3.95 

1907 

3.90 

4.45 

1908 

3.80 

4.25 

1909 

3.85 

4.00 

1910 

3.95 

4.10 

1911 

3.95 

4.15 

1912 

4.05 

4.20 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[   140 


AMERICAN   DOCK    &   IMPROVEMENT   COMPANY 
First  Mortgage  Currency  5s 

Dated  July  1,  1881  Maturing  July  1,  1921 

Interest  payable  January  1  and  July  1  at  the  Liberty  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $5,000,000  Outstanding  $4,987,000 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  three  large  tracts  of  improved  water  front 

and  dock  property,  one  tract  being  at  Caven  Point,  Jersey  City,  another  lying  immediately 
south  of  the  terminal  yards  of  the  Central  Railroad  of  New  Jersey  at  Communipaw,  and  the 
other  immediately  north  of  the  terminal  yards  of  the  above  company  at  Jersey  City. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Central 
Railroad  of  New  Jersey,  by  endorsement. 

Redemption:      The  above  bonds  are  redeemable  at  the  option  of  the  company,  on  any  interest  date,  at  110 
and  interest. 

The  entire  capital  stock  of  the  American  Dock  &  Improvement  Company  ($3,000,000  par  value) 
is  owned  by  the  Central  Railroad  Company  of  New  Jersey,  and  held  under  its  General  Mortgage. 

These  bonds  .sold  in  1902  on  a  3.87  to  4.05  basis 


1903 

3.95 

4.35 

1904 

3.85 

4.05 

1905 

3.75 

4.00 

1906 

3.85 

4.00 

1907 

3.95 

4.37 

1908 

3.90 

4.30 

1909 

3.95 

4.12 

1910 

4.00 

4.20 

1911 

4.00 

4.20 

1912 

4.10 

4.37 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


[  141  ] 


NEW  YORK  &  LONG  BRANCH  RAILROAD 

First  Mortgage  Gold  4s  and  5s 

Dated  September  1,  1891  Maturing  September  1,  1941 

Interest  payable  March  1  and  September  1  at  the  Liberty  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $-2,500,000  Outstanding,  4s,  $2,308,000 

5s,         192,000 
Per  mile     .    .    .  66,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  road  of  the  company  from  Perth  Am- 

boy,  via  Long  Branch,  to  Bay  Head,  N.  J.,  38.04  miles.    They  are  also  secured  by  a  first 
mortgage  on  the  lands,  buildings,  appurtenances  and  future  acquisitions  of  the  road. 

These  bonds  are  GUARANTEED  as  to  INTEREST,  JOINTLY  by  the  Pennsylvania  Rail- 
road Company  and  the  Central  Railroad  Company  of  New  Jersey  under  the  terms  of  its  lease. 

Trustee:  Central  Trust  Company,  New  York. 

The  New  York  &  Long  Branch  Railroad  Company  was  leased  jointly  in  1888  to  the  Pennsyl- 
vania Railroad  Company  and  the  Central  Railroad  Company  of  New  Jersey,  at  an  annual  rental 
equivalent  to  7%  on  the  outstanding  capital  stock,  interest  on  its  bonds,  and  $6,000  for  organization 
expenses.    The  entire  capital  stock  of  the  company  is  owned  by  the  Central  Railroad  of  New  Jersey. 

The  4s  of  1941  sold  in  1909  on  a  4.00  basis 

1910  4.00  to  4.10 

1911  4.00 

1912  4.00 

The  5s  of  1941  were  quoted  in  December,  1912,  on  about  a  5.00  basis 
These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


THE   LEHIGH    &   WILKES-BARRE    COAL   COMPANY 
Consolidated  Mortgage  4s 

Dated  June  1,  1910  Maturing  1915/1950 

Interest  payable  June  1  and  December  1  at  the  Liberty  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized,  $20,000,000  Outstanding  $16,996,000 

Provisions  of      $2,500,000  are  payable  every  five  years  beginning  June  1,  1915,  the  final  payment  being 
maturity:        June  1,  1950. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  the  entire  property  of  the  company, 

subject  only  to  the  $2,691,000  First  5s  of  1912,  and  upon  the  retirement  of  these,  the  bonds 
will  become  a  first  mortgage  on  the  company's  property,  including  12,900  acres  of  land  owned 
[  142  ] 


in  fee  in  the  counties  of  Luzerne,  Carbon  and  Schuylkill,  Pennsylvania,  and  2,800  acres  held 
on  long  leases.  The  lands  owned  in  fee  are  considered  the  most  valuable  in  the  entire  anthra- 
cite region  and  it  is  estimated  they  hold  some  460,000,000  tons  of  minable  coal. 

The  above  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Central 
Railroad  Company  of  New  Jersey  by  endorsement. 

Sinking  fund:  The  company  agrees  to  pay  the  trustee  annually  before  June  1,  $460,000  out  of  earnings  and 
income  to  be  applied  to  the  purchase  of  these  bonds  at  not  exceeding  par  and  interest.  If  not 
purchasable  at  this  price,  they  may  be  purchased  at  a  higher  price  or  the  fund  invested  in 
other  securities  at  the  discretion  of  the  trustee  and  with  the  approval  of  the  company. 

Trustee:  Pennsylvania  Company  for  Insurance  on  Lives  and  Granting  Annuities,  Philadelphia. 

The  Central  Railroad  of  New  Jersey  owns  $8,491,150  of  the  $9, 21*2,500  outstanding  capital  stock 
of  the  above  company. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


CENTRAL   RAILROAD    OF    NEW   JERSEY 

Equipment  Trust  4s 
Series  "  C  " 

Dated  April  I,  1903  Maturing  April  1,  1913 

Interest  payable  April  1  and  October  1  at  Liberty  National  Bank,  New  York. 

Coupon  bonds  of  $1,000. 
Authorized  and  Issued  $3,500,000  Outstanding  $350,000 

Security:  The  above  bonds  are  secured  on  41  locomotives,  35  jnissenger  train  cars,  1,000  steel  coal  cars, 

1,000  box  cars,  40  refrigerator  cars  and  525  gondola  and  special  flat  cars,  costing  $3,916,492. 

Trustee:  Central  Trust  ('onipany.  New  York. 


CENTRAL   RAILROAD    OF   NEW   JERSEY 

Equipment  Trust  4s 
Series  "D  " 

Dated  March  1,  1905  Maturing  $150,000  yearly  to  March  1.  1915 

Interest  payable  March  1  and  September  1  at  Liberty  National  Bank,  New  York. 

Coupon  bonds  of  $1,000. 

Outstanding  $450,000 

Security:  The  above  bonds  are  secured  by  12  consolidation  and  10  switching  locomotives,  25  coaches, 

5  combination,  500  box,  and  1,000  steel  hopper  cars. 

The  entire  issue  was  held  in  the  treasury  of  the  com]iany  as  of  June  30,  1912. 
[  143  ] 


CENTRAL  RAILROAD   COMPANY   OF  NEW  JERSEY 

Equipment  Trust  4s 
Series  "E" 

Issued  in  1906  Maturing  $350,000  annually  to  1916 

Interest  payable  February  1  and  August  1  at  Liberty  National  Bank,  New  York. 

Coupon  bonds  of  $1,000. 

Outstanding  $1,400,000 

The  entire  issue  was  held  in  the  treasury  of  the  company  as  of  June  30,  1912. 


CENTRAL  RAILROAD   COMPANY   OF  NEW   JERSEY 

Equipment  Trust  4s 
Series  "F" 

Issued  in  1907  Maturing  $110,000  yearly  to  1917 

Interest  payable  June  1  and  December  1  at  Liberty  National  Bank,  New  York. 

Coupon  bonds  of  $1,000. 

Outstanding  $550,000 

The  entire  issue  was  held  in  the  treasury  of  the  company  as  of  June  30,  1912. 


CENTRAL   RAILROAD   COMPANY  OF   NEW  JERSEY 

In  addition  to   the  above  described  issues,  there  were  outstanding  June  30,  1912,  $7,000 
in  real  estate  mortgages. 


[   Ui  I 


CHICAGO  &  NORTHWESTERN  RAILWAY  COMPANY 


CHICAGO  &  NORTHWESTERN  RAILWAY  COMPANY 


HISTORY 

The  history  of  the  Chicago  &  Northwestern  Railway  begins  back  in  1830  with  the  chartering 
of  the  Galena  &  Chicago  Union  Railroad.  By  1850  this  company's  line  had  been  completed  from 
Chicago  to  Elgin,  and  the  same  peoj^le  who  built  it  also  constructed  the  Chicago,  jNIilwaukee  &  Fond 
du  Lac  Railroad.  In  the  railroad  crisis  of  1857,  which  swept  so  many  Western  lines  into  bankruptcy 
just  at  their  development  stage,  both  the  Galena  &  Chicago  Union  and  the  Chicago,  Milwaukee 
&  Fond  du  Lac  Railroads  went  down.  From  their  ruins  rose  the  Chicago  &  Northwestern  Railway. 
By  1865  the  line  had  been  carried  through  to  the  Mississippi  River,  and  to  the  Missouri  River  by  1867. 

The  system  has  been  enlarged  from  time  to  time  through  the  acquisition  of  other  roads  or  through 
extensions  built  chiefly  by  proprietary  comjjanies,  all  of  whose  stocks  and  bonds  were  owned  by  the 
Chicago  &  Northwestern  Railway  Company.  From  the  original  177  miles,  in  1859,  the  total  mile- 
age of  the  system  has  increased  until  in  1912  it  embraced  7,960  miles  of  main  track  and  1,060  miles 
of  extra  main  track. 

Continuing  its  policy  of  expansion,  during  the  fiscal  year  ending  June  30,  1911,  the  company 
acquired,  by  purchase,  the  Lee  County  Railway,  a  double-tracked  line  extending  from  Nachusa  to 
Nelson,  Illinois,  a  distance  of  12.7  miles;  and  the  Sioux  City,  Dakota  &  Northwestern  Railway, 
extending  from  a  connection  with  the  Illinois  Central  Railroad  near  Hinton,  Iowa,  to  a  connection 
with  the  Chicago  &  Northwestern  Railway  near  Hawarden,  Iowa,  a  distance  of  28.2  miles.  In  the 
same  year  the  Belle  Fourche  Valley  Railway,  a  line  24  miles  in  length  in  South  Dakota,  and  the  James 
River  Valley  &  Northwestern  Railway,  40  miles  in  length,  also  in  South  Dakota,  were  leased. 

The  Chicago  and  Northwestern  purchased  the  property  of  the  Milwaukee,  Sparta  &  Northwest- 
ern Railway  Company  on  April  1,  1912.  This  comi)any  had  been  organized  in  1910  to  construct 
a  line  of  169  miles  extending  from  Lindwern,  about  eight  miles  north  of  Milwaukee,  to  Sparta, 
Wisconsin,  also  to  construct  a  belt  line  from  Lindwern  around  Milwaukee.  With  the  construction 
of  this  line,  double-tracked  and  equi])ped  with  automatic  block  signals,  a  direct  low-grade  route 
has  been  opened  between  the  points  in  question,  to  which  a  large  volume  of  traffic  now  passing 
over  heavy  grades  via  Madison  and  Elroy  will  now  be  diverted. 

The  Chicago  &  Northwestern  Railway  Company  had  long  felt  the  need  of  adequate  terminal 
facilities  in  the  city  of  Chicago.  At  a  cost  of  millions  of  dollars  and  after  several  years  of  construc- 
tion work,  ample  terminal  properties  were  developed  together  with  extensive  track  elevations,  and 
put  into  use  during  the  fiscal  year  of  1911.  These  include  a  splendidly  equipped  sixteen-track 
passenger  terminal  which  was  opened  in  June,  1911,  and  cost  with  approaches  approximately 
$22,000,000.  During  1912  the  new  terminal  handled,  on  an  average,  51,000  people  a  day.  To 
deal  with  this  traffic  required  315  trains  daily. 

Another  very  important  piece  of  construction,  which  the  "Northwestern"  has  undertaken,  is 
the  building  of  a  ninety-mile  extension  known  as  the  St.  Louis,  Peoria  &  Northwestern  Railway, 
into  the  heart  of  the  coal  fields  which  the  company  owns  in  Illinois.  This  extension,  it  has  been 
estimated,  will  cost  nearly  $8,000,000  to  build,  owing  to  the  thickly  settled  territory  through  which 
it  must  run.  It  is  confidently  expected,  however,  that  this  proposed  line  will  prove  a  profitable  in- 
vestment inside  of  four  years,  since  it  will  enable  the  company  to  transport  all  its  own  coal  instead 
of  paying  freight  to  the  Chicago  &  Alton,  as  at  present. 

The  Chicago  &  Northwestern  Railway  Company  owns  149,200  shares  of  the  capital  stock  of 
the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Railway  Company.    This  holding  is  represented  by 

[  147  ] 


53,800  shares  of  the  latter's  preferred  and  95,400  shares  of  its  common  stocks,  thus  giving  the  Chicago 
&  Northwestern  Railway  a  working  control  of  this  important  railroad  with  more  than  1,800  miles 
of  main  track.  With  the  exception  of  one  share,  the  entire  capital  stock  of  the  Albany  Railroad 
Bridge  Company,  which  owns  the  railroad  bridge  across  the  Mississippi  River  at  Clinton,  Iowa,  is 
held  in  the  treasury  of  the  Chicago  &  Northwestern  Railway  Company. 

The  company  also  has  contracts  and  traffic  agreements  with  several  of  the  large  systems  in 
the  Northwest.  It  has  an  arrangement  with  the  Chicago,  Burlington  &  Quincy  Railroad  whereby 
the  latter  has  the  use  of  the  Albany  Railroad  Bridge  Company's  bridge  at  Clinton,  at  an  annual 
rental  of  $20,000;  it  has  the  joint  use,  with  the  Chicago,  Rock  Island  &  Pacific  Railroad,  of  freight 
terminals  at  Council  Bluffs,  Iowa;  and  most  important  of  all,  it  has  a  traffic  agreement  with  the  Union 
Pacific  Railroad,  the  Southern  Pacific  Railway,  the  Oregon  Short  Line  Railroad  and  the  Oregon 
Railroad  &  Navigation  Company,  whereby  a  through  route  between  Chicago  and  the  Pacific  Coast 
is  jointly  maintained. 

PROPERTY 

The  total  main  track  operated  by  the  Chicago  &  Northwestern  Railway  Company  at  the  close 
of  the  fiscal  year  ending  June  30, 1912,  was  7,960.45  miles.  Of  this  amount  7,744.85  miles  were  owned 
in  fee,  1.98  miles  were  operated  through  ownership  of  the  entire  capital  stocks  of  the  companies 
in  question,  136.84  miles  were  operated  under  lease  and  76.78  miles  under  trackage  rights.  There 
were  1,059.63  miles  of  extra  main  track  ui  operation. 

The  Northwestern  extends  from  Chicago,  westward  through  the  rich  corn  fields  of  Iowa,  into 
eastern  Nebraska.  It  extends  westerly  from  Omaha  and  Sioux  City  to  Lander,  Wyoming,  and  to 
Deadwood,  in  the  Black  Hills.  x\nother  great  trunk  line  carries  the  road  through  southern  Minne- 
sota into  South  Dakota;  .^-et  another  northward  from  Chicago  through  Wisconsin  into  the  great 
iron  districts  of  the  INIichigan  Peninsula.  The  Chicago,  St.  Paul,  Minneapolis  &  Omaha  carries  the 
system  to  Duluth,  Minneapolis  and  St.  Paul  and  from  there  to  Sioux  City  and  Omaha. 

An  average  of  7,858.87  miles  were  operated  during  the  fiscal  year  1912  and  this  figure  is  used  as 
a  basis  for  the  following  statistics. 

CAPITALIZATION 

The  following  table  has  been  compiled  from  the  ofiicial  reports  of  the  company  for  the  fiscal 
year  ending  June  30,  1912,  and  shows  the  actual  capitalization  of  the  Chicago  &  Northwestern  Rail- 
way at  that  time: 

Capital  stock: 

Preferred $22,398,954 

Common 132,455,531 

Total  capital  stock $154,854,485 

Total  funded  debt 190,460,000 

Rental  capitalized  @  5% 2,575,140 

Gross  capitalization $347,889,625 

Securities  owned 28,550,705 

Net  capitalization $319,338,920 

Net  capital  per  mile  oi)craled $40,634 

Average  miles  <>|)erale<l      7,858.87 

Nel    In.-.nne  I,,  nel  ej.j.ihil       7.6% 

Fix.  (I  eliai-es  lo  net  income 52.5% 

Margin  of  safety 47.5% 

[  148  ] 


During  the  decade  ending  June  30,  1912,  there  were  three  important  increases  in  the  outstanding 
capital  stock:  one  in  190G,  another  in  1907,  when  additional  stock  was  issued  to  provide  funds  for 
construction  and  for  improving  and  equipping  the  railway;  and  the  third  in  January,  1910,  when 
stockholders  of  record  were  permitted  to  subscribe  for  an  amount  of  stock  equal  to  25%  of  their  re- 
spective holdings.  $30,502,800  was  thus  subscribed  for.  During  this  period  the  bonded  debt  per 
mile  of  the  company  decreased.  In  1902  the  bonded  debt  amounted  to  over  $26,800  per  mile.  In 
1912  this  item  stood  at  slightly  over  $24,200  per  mile. 

A  comparison  of  the  average  net  capitalization  per  mile  of  the  Northwestern  for  the  decade 
ending  June  30,  1912,  with  that  of  the  Burlington  and  St.  Paul  is  given  below: 

Net  capital  Net  income 

per  mile  to  net  capital 

Northwestern $33,546  9.5% 

BurHngton      30,670  9.1 

St.  Paul 36,450  8.9 

It  will  be  seen  by  the  foregoing  that  on  the  basis  of  comparative  earnings  the  Chicago  &  North- 
western Railway  Company  has  an  average  capitalization  as  low  as  any  of  the  railroads  of  impor- 
tance which  handle  traffic  in  its  own  immediate  territory. 

It  will  be  noted  that  the  Northwestern  showed  an  ample  margin  of  safety  for  the  interest  on 
its  funded  debt  and  other  charges.  47.5%  in  1912  compares  with  51.0%  in  1911.  While  fixed 
charges  themselves  increased  but  slightly,  the  surplus  for  the  same  declined  from  $3,231  per  mile 
to  $3,086.  The  fiscal  year  of  1912  was  the  first  in  nearly  a  decade  in  which  the  company  did 
not  earn  at  least  twice  its  fixed  charges. 


CHARACTER   OF  TRAFFIC 

The  annual  reports  of  the  Northwestern  do  not  itemize  the  traffic  beyond  the  sources  of  earnings. 
In  1902  the  ratio  of  freight  to  all  traffic  was  72%.  During  the  decade  this  ratio  has  steadily  declined 
to  63%  in  1912,  reducing  the  average  ratio  for  ten  years  to  about  69%. 

Though  generally  ranked  as  one  of  the  "Grangers,"  the  Northwestern  is  not  as  dependent  on 
grain  products  as  some  of  its  competitors,  tapping,  as  it  does,  the  ore  districts  of  Michigan  and  the 
forest  regions  of  Northern  Minnesota  and  Wisconsin.  Covering  all  the  important  cities  in  tlie  North- 
west, too,  it  is  safe  to  assume  that  the  company  gets  its  share  of  mercliandise  traflic  which  must 
necessarily  grow  in  volume  from  year  to  year.  It  is  true,  however,  that  those  lines  covering  the  grain 
regions  of  Minnesota,  Nebraska,  Iowa  and  the  Dakotas  must  necessarily  depend  for  their  profita- 
bleness to  the  company  upon  the  success  of  the  crops  from  year  to  year. 

Compiled  from  the  statistics  of  the  company  are  some  of  the  more  important  freight  figures  for 
the  years  ending  June  30,  1907  to  1912  inclusive: 

Freight  Statistics 

lan  1911        1910       1909       1908       1907 

Number  of  tons  carried .  37,266*  736,733*  39,340*  32,793*  30,600*  37,579* 

Freight  density    ...  654,871  703,938  729,137  634,263  633,867  718,947 

Train  load  tons  .    .    .    .  298.9  276.5  260.7  260.1  261.6  263.6 
Freight  earnings  per  ton 

mile $.0091  $.0090  $.0089  $.0090  $.0087  $.0090 

Freight  earnings  per  mile  $5,941  $6,351  $6,493  $5,713  $5,497  $6,500 

*  000  omitted. 

[  149  ] 


As  will  be  seen  by  the  foregoing,  1910,  following  the  comparatively  poorer  years  of  1908  and 
1909,  was  the  big  freight  year  of  the  company,  in  fact,  the  largest  in  its  history.  In  1911  there  was 
a  slight  falling  off  in  the  actual  freight  carried,  but  the  fractional  increase  in  earnings  per  ton  per 
mile  kept  the  freight  earnings  close  to  the  1910  figures.  The  encouraging  feature  of  the  above  table 
is  the  marked  increase  in  train  load  tons  in  1912  over  those  of  the  five  years  preceding.  i\s  a  result 
of  this  increase  in  operating  efficiency,  the  average  freight  revenue  per  train  mile  increased  from  $2.32 
in  1910  to  $2.71  in  1912,  or  16%. 

From  year  to  year  the  passenger  business  of  the  Northwestern  plays  an  increasingly  important 
part  in  the  entire  traffic  of  the  company.  The  following  salient  passenger  statistics  are  given  for 
the  years  1907  to  1912  inclusive: 

Passenger  Statistics 


191-2 

1911 

1910 

1909 

1908 

1907 

31,527* 

30,330* 

28,697* 

26,951* 

25,994* 

25,574^ 

37,496 

136,568 

132,749 

121.968 

113,938 

106,723 

No.  passengers  carried  . 
Passenger  density  .  . 
Average  passenger  rate 

per  mile $.0181       $.0181         $.0182         $.0181         $.0181         $.0200 

Passenger  earnings  ])er 

mile $2,488       $2,477         $2,416         $2,210         $2,062         $2,134 

It  will  be  noted  that  the  passenger  business  of  the  company  has  increased  steadily  from  year  to 
year,  while  the  average  rate  per  passenger  per  mile  has  remained  practically  stationary  since  1908, 
when  a  radical  reduction  was  made.  The  rate  prior  to  1907  averaged  higher  than  2.02  cents.  Coin- 
ciding with  the  increase  in  the  number  of  passengers  carried  and  the  increase  in  density,  it  will  be 
seen  that  the  earnings  from  this  source  advanced.  Passenger  earnings  per  mile  rose  from  slightly 
over  $2,000  in  1908  to  $2,488  in  1912,  an  increase  of  20%. 

EARNINGS 

Based  on  the  annual  reports  of  the  company  for  the  years  1907  to  1912  inclusive,  the  following 
table  is  given,  showing  gross  and  net  earnings,  both  actual  and  figured  on  the  basis  of  miles  operated : 

Per  mile  Xet  earnings  Per  mile 

$9,122  $24,089,905  $3,190 

8,285  21,578,031  2,828 

8,641  22,787,232  2,984 

9,723  22,022,065  2,887 

9,706  21,905,475  2,838 

1912  .    .      7,859               73,698,592                9,378  20.996,748  2,672 

As  was  the  case  with  most  of  the  large  systems  of  the  countrj',  the  Chicago  &  Northwestern 
suffered  both  in  gross  and  net  earnings  from  the  general  business  depression  in  1908  and  1909.  The 
Northwestern  Railway,  however,  was  more  fortunate  than  most  roads  in  that  it  was  enabled  to  keep 
its  operating  ratio  steady  during  that  time.  The  ratios  of  operating  expenses  to  gross  earnings  for 
the  years  1907  to  1912  inclusive  were  as  follows: 

Year  Batio  Year  Ratio 

1907 65.0%  1910 70.3%, 

1908 65.8  1911  ......  70.7 

1909 65.4  1912 71.5 

*  000  omittetl. 
[    150   1 


Year 

Average  miles 
operated 

Gross  earnings 

1907   . 

7,551 

$68,878,931 

1908  . 

7,631 

63,219,344 

1909  . 

.      7,635 

65,978,471 

1910  . 

.      7,629 

74,175,684 

1911  . 

.      7.719 

74,918,185 

Although  gross  earnings  in  1910  were  the  largest  in  the  history  of  the  company  up  to  that  time, 
showing  an  increase  of  over  $8,000,000  over  the  figures  of  1909,  there  was  an  actual  decrease  in  net 
earnings  due  to  an  increase  in  operating  expenses  of  nearly  $9,000,000,  which  brought  the  operating 
ratio  up  to  70.3%,  as  shown  above.  This  increase  in  operating  expenses  is,  in  part,  explained  by  an 
increase  of  nearly  $5,500,000  in  the  wage  account,  and  substantial  additions  to  the  company's  main- 
tenance accounts. 

In  1911  gross  earnings  showed  a  slight  increase  over  the  high  figures  of  1910,  but  there  was  a 
slightly  greater  increase  in  operating  expenses,  which  left  the  operating  ratio  for  the  year  70.7  as 
against  70.3  in  1910.  This  was  due  mainly  to  the  cost  of  conducting  transportation,  resulting  from 
the  increased  cost  of  supplies.  The  labor  situation  was  well  handled,  and  the  company  did  not 
suffer  either  from  higher  wages  or  shorter  hours.  In  fact,  there  was  a  saving  in  the  wage  item  of 
$300,000  during  that  year. 

In  1912  the  company  reported  gross  earnings  of  $1,200,000  less  than  in  1911,  due  to  the  decline 
in  freight  traffic.  Operating  expenses  decreased  but  $310,000,  raising  the  operating  ratio  for  the 
year  from  70.7%  in  1911  to  71.5%. 

MAINTENANCE 

The  Chicago  &  Northwestern  Railway  is  considered  in  general  to  be  one  of  the  best  maintained 
roads  in  the  West.  Its  charges  for  upkeep,  however,  are  not  so  heavy  as  those  of  the  Chicago,  Bur- 
lington &  Quincy  Railroad,  which  is  noted  for  its  high  maintenance  charges.  Below  is  a  statement 
of  the  traffic  density  of  the  company,  together  with  the  charges  for  maintenance  of  way  and  equip- 
ment figured  on  the  basis  of  miles  o])erated,  for  the  years  ending  June  30,  1907  to  1912  inclusive: 

Year                    Traffic  density                                 Maintenance  Total                        Per  cent  of 

Way  Equipment  total  to  gross 

earnings 

1907  .    .    .      825,670                  $1,180                  $1,154  $2,334                    25.6% 

1908  .    .    .     747,805                   1,055                      887  1,942                   23.4 

1909  .    .    .     756,231                   1,103                   1,028  2,131                   24.6 

1910  .    .    .     861,886                   1,412                   1,199  2,611                   27.0 

1911  .    .    .      840,500                    1,296                    1,205  2,501                    25.7 

1912  .    .    .     792,367                   1,192                   1.218  2,410                   25.7 

Closely  paralleling  the  falling  off  in  gross  earnings  in  1908  and  1909,  is  the  decrease  shown  in 
maintenance  charges  for  those  years,  and  with  the  return  of  prosperity  in  1910  a  corresponding 
increase  in  upkeep  is  evident.  In  fact,  during  1910  and  1911  a  larger  proportion  of  earnings  was 
spent  for  maintenance  than  ever  before. 

The  following  comparative  table  shows  the  average  traffic  density  and  the  average  expenditures 
for  maintenance  of  way  and  equipment  for  the  six  years  ending  June  30,  1912,  for  the  North- 
western, the  Burlington,  and  St.  Paul  Systems: 

Traffic  Total  Per  cent  of 

density  maintenance  total  to  gross 

per  mile  earnings 

Northwestern 804,077  $2,321  25.3% 

St.  Paul 785,417  2,108  25.3 

Burlington 927,591  3,081  33.6 


ADDITIONS   AND    BETTERMENTS 

During  the  years   1907  to   1912  inclusive,   the  Chicago  &  Northwestern  Railway  Company, 
beside  all  its  maintenance  charges,  has  spent  $97,023,366  upon  improvements.    Figured  on  the  basis 

[  151  ] 


of  the  average  miles  operated  during  that  period,  this  amount  equals  $12,658  per  mile,  all  of  which 
lias  been  charged  to  capital  accounts.  Enumerated  below  are  the  total  annual  expenditures  showing 
the  amounts  utilized  for  construction  and  for  the  purchase  of  new  equipment. 

Year  Construction  Equipment  Total 

1907 $6,149,267  $3,962,640  $10,111,907 

1908 6,888,386       1,099,799  7,988,185 

1909 14,650,991                    858,808  15,509,799 

1910 24,443,015*  5,951,407  30,394,422 

1911 11,554,358                  3,151,132  14,705,490 

1912 18,391,956t                   78,393  Cr.  18,313,563 

Total  for  6  years $97,023,366 

Average  for  1  year 16,170,561 


DIVIDENDS 

Since  1880  the  Chicago  &  Northwestern  Railway  Company  has  paid  the  following  dividends 
upon  its  capital  stock  outstanding: 


Year 

Common 

Preferred 

1880-1  . 

.    .   6% 

7% 

1882 

.    .   7 

7M 

1883-5  . 

.    .   7 

8 

1886-94 

.    .   6 

7 

1895 

.    .   4 

7 

Year 

Common 

Preferred 

1896-9   .    . 

..0/0 

7% 

1900-1    .    . 

.    .   6 

7 

1902       .    . 

.    .   7 

8 

1903-12.    . 

.    .   7 

8 

Since  the  close  of  the  long  business  depression  in  1873-1877,  the  Northwestern  has  paid  dividends 
steadily  on  both  its  common  and  preferred  stocks.  It  will  be  noted  in  the  table  above  that  following 
1893,  the  dividend  on  common  stock  was  cut  as  low  as  4%,  but  it  should  be  remembered  that  that 
was  a  period  when  more  than  one  quarter  of  the  railroad  mileage  of  the  coimtry  was  in  the  hands  of 
receivers. 

The  dividend  rate  has  remained  stationary  smce  1902,  and  was  maintained  in  spite  of  the 
general  business  depression  following  1907.  This  is  all  the  more  remarkable  when  one  considers  the 
fact  that  it  was  paid  on  increased  capital  stock  for  the  intervening  period  of  over  $72,000,000, 
a  large  part  of  which  was  not  yet  showing  adequate  returns. 

Since  the  organization  of  the  company  it  has  paid  150  cash  dividends,  aggregating  308^%,  or 
$67,306,379,  on  its  preferred  stock,  and  79  cash  dividends,  aggregating  241%,  or  $108,192,505,  on 
its  common  stock. 

On  June  30,  1912,  the  Profit  and  Loss  Account  of  the  company  stood  on  its  general  balance 
slieet  at  $34,186,372.     This  is  equal  to  22%  of  the  total  capital  stock  outstanding. 


STATISTICS 

Following  are  given  capitalization,  earnings,  and  traffic  statistics  of  the  Chicago  &  Northwest- 
ern Railway,  based  on  the  average  miles  operated,  for  the  year  1900  and  for  the  years  1905  to 
1912  inclusive: 

*  Includes  .$11,03«,9M,  the  <(ist  of  the  Chicago  Terminal  property. 

t  Includes  $14,506,058,  the  cost  to  date  of  the  Milwaukee,  Sparta  &  Northwestern  Railway. 


[    152 


CHICAGO    &   NORTHWESTERN   RAILWAY 


Fiscal 

Preferred 

Common 

Funded 

Rentab 

Gross 

Owned  by            Net 

Average 

Extra 

year 

stock 

stock 

debt 

at  5% 

capital 

company          capital 

miles 

main 

operated 
5,219 

track 

1900 

$4,290 

$7,949 

$27,751 

$257 

$40,247 

$6,771 

$33,470 

624 

1905 

3,023 

6,840 

22,032 

181 

32,076 

3,074 

29,00!^ 

7,408 

874 

1900 

3,015 

10,434 

22,104 

181 

35,734 

5,619 

30,115 

7,429 

862 

1907 

2,967 

13,502 

21,879 

178 

38,526 

6,651 

31,875 

7,551 

973 

1908 

2,935 

13,360 

21,612 

176 

38,083 

7.331 

30,752 

7,631 

978 

1909 

2,934 

13,353 

22,550 

176 

39,013 

5,734 

33.27P 

7.635 

981 

1910 

2,935 

17,362 

22,737 

176 

43,210 

5,715 

37,49a 

7,629 

1,000 

1911 

2,902 

17,100 

22,601 

333 

42,996 

3,754 

39,24', 

7,719 

1,027 

1912 

2,850 

16,855 

24,234 

327 

44,266 

3,632 

40,634 

7,859 

1,059 

Fiscal 

Gross 

Maintenance           Transportation         Net 

Other 

Total 

Fixed 

Surplus 

year 

operating 

and  general 

operating 

income 

net 

charges        available  for 

revenue 

Way            Equipment 
$1,071              $833 

expense 

revenue 

$263 

$3,556 

$1,649 

dividends 

1900 

$8,230 

$3,033 

$3,293 

$1,907 

1905 

7,525 

1,008 

866 

3,047 

2,604 

207 

2,811 

1,404 

1,407 

1906 

8,545 

924 

1,216 

3,216 

3,189 

216 

3,405 

1,413 

1,992 

1907 

9,122 

1,180 

1,154 

3,598 

3,190 

303 

3,497 

1,422 

2,075 

1908 

8,285 

1,055 

887 

3,515 

2,828 

381 

3,209 

1,421 

1,788 

1909 

8,641 

1,103 

1,028 

3,526 

2,984 

334 

3,318 

1,494 

1,824 

1910 

9,723 

1,412 

1,199 

4,225 

2,887 

333 

3,220 

1,608 

1,612 

1911 

9,706 

1,296 

1,205 

4,367 

2,838 

393 

3,231 

1,598 

1,633 

1912 

9,378 

1,192 

1,218 

4,296 

2,672 

414 

3,086 

1,627 

1,459 

Fiscal 

Divi-        Other          Surplus 

Operating 

Total 

Conducting 

FLxed 

Gross 

Net 

Per  cent 

year 

(lends       charges 

expenses 

mainte- 

transpor- 

charges 

earnings 

income               earned  on 

to  in- 

to gross 

nance  to 

tation  to 

to  gross 

to  gross 

to  net 

capital  stock 

come 

earnings 

gross 

gross 

earnings 

capital 

capital 

$749         $870            $288 

earnings 

earnings 

Preferre 
7o         44.3' 

d  Common 

1900 

60.0% 

23.0% 

37.0% 

20.0% 

20.4% 

15.1 

7o     20.1% 

1905 

699 

S21                87 

65.4 

25.0 

40.4 

14.7 

23.4 

9.7 

40.9 

17.1 

1906 

872 

MS              312 

62.6 

24.0 

38.0 

12.7 

23.9 

11.3 

66.4 

16.8 

1907 

1,047 

1,028 

65.0 

25.6 

39.4 

10.6 

23.5 

10.7 

66.7 

13.1 

1908 

1,148 

640 

65.8 

23.4 

42.4 

12.9 

21.7 

10.4 

61.7 

11.6 

1909 

1,148 

676 

65.4 

24.6 

40.8 

13.1 

22.1 

10.0 

63.0 

11.8 

1910 

1,289 

323 

70.3 

27.0 

43.3 

12.4 

22.5 

8.6 

55.5 

8.0* 

1911 

1.412 

221 

70.7 

25.7 

45.0 

16.4 

22.6 

8.3 

57.4 

8.3 

1912 

1,387 

72 

71.5 

25.7 

45.8 

17.3 

21.2 

7.6 

51.2 

7.3 

Fiscal 

Train 

Maintenance 

Conducting 

Train 

Rate  per 

mile 

Freight            Train 

Freight       Passenger, 

year 

mile 

per  revenue 

ransportatior 

mile 

density 

oad 

to  all 

freight 

earnings 
(gross) 

train  mile 

per  revenue 

earnings 

Per 

Per 

revenue 

traffic 

and 

train  mile 

(net) 

passenger 

ton 

tons 

company 

$1.55         $ 

I'ay      Equipment 

201          $.157         $.570 

$.622 

236 

75% 

cars 

1900 

$.0083       $.0198 

737,577 

42,512 

1905 

1.67 

220           .194 

.685 

.565 

.0092 

.0202 

579,434 

238 

71 

53,519 

1906 

1.79 

194           .255 

.674 

.667 

.0089 

.0205 

694,047 

263 

72 

57,057 

1907 

1.87 

239           .234 

.731 

.666 

.0090 

.0202 

718,9t7 

264 

71 

59,846 

1908 

1.75 

222           .186 

.738 

.604 

.0087 

.0181 

633,867 

261 

69 

60,354 

1909 

1.78 

226           .210 

.724 

.620 

.0090 

.0181 

634.263 

260 

69 

61,282 

1910 

1.79 

200           .221 

.777 

.532 

.0089 

.0182 

729,137 

261 

67 

65.971 

1911 

1.88 

251           .233 

.847 

.549 

.0090 

.0181 

703,938 

277 

65 

64,511 

1912 

1.92 

244           .249 

.878 

.549 

.0090 

.0181 

654,871 

299 

63 

63,034 

*  Increase  of 

common  stock  reduced  per  cent  earned. 

[ 

153  ] 

BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond   issues  of  the  Chicago  &  North- 
western Railway  System,  together  with  the  bases  upon  which  they 
have  sold  during  the  decade  ending  December  31,  1912: 


CHICAGO    &   NORTHWESTERN   RAH^WAY 


General  Mortgage  Gold  3^23  and  4s 


Dated  November  1,  1897  Maturing  November  1,  1987 

Interest  payable  May  1  and  November  1  at  Company's  office,  111  Broadway,  New  York. 

Registered  bonds  payable  quarteriy,  February  1. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 


Authorized  $105,000,000 


Outstanding,  4s,  $22,500,000 

3Hs,     30,827,000 

Per  mile.    .    .    .  10,570 


Provisions  of      Of  the  total  amount  authorized,  $53,327,000  are  outstanding,  as  above,  $489,000  are  held  in 
issue:  sinking  funds,  $82,954,500  are  reserved  to  retire  outstanding  bonds  to  that  amount,  $5,910,000 

are  owned  by  the  company,  and  the  balance  has  been  reserved  for  additions,  improvements 
and  equipment. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  5,043  miles  of  road,  realty  (excluding 

land  grants),  specified  securities,  equipment  and  future  acqiusitions.  They  are  secured  by  a 
first  mortgage  on  1,750  miles,  a  second  mortgage  on  2,759  miles,  and  a  third  mortgage  on  534 
miles. 

It  is  provided  in  one  of  the  sections  of  this  mortgage  that  nothing  therein  shall  be  construed 
to  enlarge  or  enhance  in  any  way  the  value  of  prior  bonds,  which,  if  taken  alone,  seems  to  con- 
flict with  the  provisions  of  the  indentures  securing  the  Debenture  5s  of  1921  and  the  Sinking 
Fund  Debenture  5s  of  1933. 

Trustee:  The  United  States  Trust  Company,  New  York,  and  John  A.  Stewart,  Esq. 

Equity:  The  above  bonds  are  subject  to $62,964,500  prior  liens.    A  sufficient  amount  of  this  issue  has 

been  reserved  to  retire  the  same. 


The  General  Mortgage  4s  sold  in  1911  on  a  4.00  to  4.125  basi: 
1912  4.05       4.20 

The  General  Mortgage  3i^s  sold  in  1902  on  a  3.27  to  3.40  basis 


1903 

3.45 

3.67 

1904 

3.50 

3.67 

1905 

3.45 

3.52 

1906 

3.50 

3.70 

1907 

3.57 

4.05 

1908 

3.65 

3.95 

1909 

3.70 

3.95 

1910 

3.90 

4.05 

1911 

4.00 

4.15 

1912 

4.05 

4.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  1.50 


CHICAGO    &   NORTHWESTERN   RAILWAY 

Collateral  Trust  Sinking  Fund  Currency  5s  and  6s 

Dated  October  1,  1879  Maturing  October  1,  1929 

Interest  payable  April  1  and  October  1  at  tiie  company's  office,  111  Broadway,  New  York, 

and  in  pounds  sterling  in  London. 


Coupon  bonds  of  $500  and  $1,000,  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 


Authorized  $15,000,000 


Outstanding,  5s,  $6,128,000 

6s,     5,246,000 

Per  mile.    .    .    .  10,880 


Provisions  of     Under  the  terms  of  the  mortgage  of  the  Chicago  &  Northwestern  General  Mortgage  S}^s  of 
issue:  1987,  no  more  of  these  bonds  may  be  issued. 

Security:  The  above  bonds  are  a  direct  obligation  of  the  company.    They  are,  in  effect,  a  first  mortgage 

on  1,045  miles  of  road,  being  a  first  collateral  hen  on  the  entire  issues  of  first  mortgage  bonds 
of  a  number  of  companies,  aggregating  an  amount  equal  to  the  amount  of  bonds  outstanding 
of  this  issue,  and  covering  by  first  lien  the  above  mileage. 

Redemption:  These  bonds  are  redeemable  for  the  sinking  fund  at  105  and  interest.  Commencing  October, 
1884,  a  sum  in  each  year  equal  to  1%  of  the  bonds  then  outstanding  has  been  applied  to 
the  purchase  and  redemption  of  these  bonds.  When  these  bonds  have  been  cancelled,  the 
trustee  has  deli\ered  to  the  company  an  equal  amount  of  first  mortgage  bonds  held  thereunder, 
selected  from  all  classes  in  proportion.  These  bonds  have  been  likewise  immediately  cancelled. 
Up  to  the  present  time  $3,626,000  of  the  above  issue  have  been  thus  retired  and  cancelled  by 
the  sinking  fund. 

Equity:  The  first  mortgage  bonds  deposited  hereunder  as  collateral  are  prior  in  hen  to  the  General 

3}/^s  of  1987  of  which  a  sufficient  amount  is  reserved  to  retire  these  Collateral  Trust  5s  and 
6s  or  the  bonds  deposited  hereunder. 


Trustee: 


Farmers'  Loan  &  Trust  Company,  New  York. 


The  Collateral  Trust  5s  of  1929  sold  m  1902  on 

a  4.37  to  4.60  basis 

1903 

4.37 

4.60 

1904 

4.30 

4.45 

1905 

4.10 

4.35 

1906 

3.90 

4.55 

1907 

4.50 

4.70 

1908 

4.27 

4.37 

1909 

4.25 

4.40 

1910 

4.25 

4.60 

1911 

4.37 

4.70 

1912 

4.45 

4.55 

[Table  continued  on  page  158] 


[  1.57  I 


sold  in  1902  on 

a  4.80  to  5.00  basis 

1903 

5.05 

5.15 

1904 

4.87 

5.30 

1905 

4.70 

4.95 

1906 

4.95 

5.15 

1907 

5.45 

5.60 

1908 

5.12 

5.40 

1909 

5.05 

5.20 

1910 

5.05 

5.125 

1911 

5.00 

:ember,  1912 

5.15  i 

(bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Massachusetts. 


CHICAGO    &   NORTHWESTERN   RAILWAY 
Collateral  Trust  Extension  Currency  4s 

Dated  April  15,  1886  Maturing  August  15,  1926 

Interest  payable  February  15  and  August  15  at  Company's  office.  111  Broadway,  New  York. 


Coupon  bonds  of  $1,000,  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 


Authorized  $20,000,000 


Outstanding  $17,670,000 


Provisions  of      The  amount  of  these  bonds  authorized  for  the  construction  or  purchase  of  roads  at  not  ex- 
issue:  ceeding  $20,000  per  mile  is  $20,000,000.     This  amount  has  been  limited  to  $18,632,000,  of 
which  $17,670,000  are  outstanding,  as  above,  and  $962,000  held  by  the  company. 

Security:  The  above  bonds  are,  in  effect,  a  first  mortgage  on  447.6  miles  of  road,  being  a  first  collateral 

lien  on  the  entire  issues  of  first  mortgage  bonds  of  a  number  of  companies,  all  maturing  in  1926, 
aggregating  $7,957,000,  and  covering  by  first  liens  the  above  mileage.  The  above  bonds  are 
further  secured  by  a  first  collateral  lien  on  $10,675,000  out  of  a  total  of  $18,400,000  Fremont, 
Elkhorn  &  Missouri  Valley  6s  of  1933,  covering  1,172  miles  of  road. 

K(|uity:  The  first  mortgage  bonds  deposited  under  this  issue  are  prior  in  lien  to  the  General  3i2-<  "f 

1987,  a  sufficient  number  of  which  have  been  reserved  to  retire  this  issue. 


Union  Trust  Company,  New  York. 


The 


bonds  sold  in  1002  on  a  3.55  to  3.67  basis 
1903  3.70       3.95 


1904 

3.65 

3.80 

1905 

3.60 

3.67 

1906 

3.65 

3.875 

1907 

3.85 

4.10 

1908 

4.05 

4.10 

1909 

3.85 

4.05 

1910 

3.90 

4.30 

1911 

4.02 

4.27 

1912 

4.20 

4..S5 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Vermont,  Massa 
chusetts  and  Rhode  Island. 

[  158  ] 


CHICAGO    &   NORTHWESTERN    RAILWAY 
Sinking  Fund  Debenture  Currency  5s 

Dated  May  1,  1888  Maturing  May  1,  1933 

Interest  payable  May  1  and  November  1  at  Company's  office,  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

Authorized  $10,000,000  Outstanding  $9,695,000 

Security:  These  debentures  are  a  direct  obligation  of  the  company,  and  are  secured  by  an  indenture 

which  proNades  that  no  further  mortgage  shall  be  placed  on  the  property  without  equally 
securing  these  bonds. 

Sinking  fund:  Annually  $200,000  is  to  be  apjilied  to  the  purchase  and  cancellation  of  these  debentures  at 
not  exceeding  105  and  interest,  but  if  not  so  purchasable  the  company  shall  be  released  from 
the  liability  that  year.    Up  to  the  present  time  $305,000  have  been  cancelled  by  this  fund. 


Equity: 


Trustee: 


The  General  Mortgage  33^s  of  1987,  executed  in  1897,  do  not  equally  secure  these  debentures. 
The  indenture  states  that  "notliing  in  the  indenture  shall  be  construed  to  enlarge  the  security 
of  any  outstanding  bonds."  A  sufficient  amount  of  General  Mortgage  33^s  of  1987  have  been 
reser\ed  to  retire  these  bonds. 

Union  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  3.70  to  4.00  ba^is 


1903 

3.95 

4.15 

1904 

3.95 

4.10 

1905 

3.85 

4.05 

1906 

3.95 

4.20 

1907 

4.05 

4.65 

1908 

4.12 

4.40 

1909 

4.10 

4.375 

1910 

4.22 

4.375 

1911 

4.28 

4.50 

1912 

4.37 

4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


CHICAGO    &   NORTHWESTERN    RAILWAY 
Debenture  Currency  5s 

Dated  February  28,  1891  Maturing  April  15,  1921 

Interest  payable  April  15  and  October  15  at  the  Company's  office.  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000.  $5,000  and  $10,000. 

Authorized  $10,000,000  Outstanding  $9,819,000 

Provisions  of     Of  the  $10,000,000  authorized,  $9,819,000  are  outstanding  as  above  and  the  balance  is  held 
issue:  in  sinking  funds  of  the  company. 

[  159  ] 


Security : 


These  debentures  are  a  direct  obligation  of  the  issuing  company,  secured  by  an  indenture  which 
provides  that  no  further  mortgage  shall  be  placed  on  the  property  of  the  company,  without 
equally  securing  these  bonds.  The  General  3i/^%  Mortgage,  executed  in  1897,  does  not  equally 
secure  these  debentures,  stating  that  "nothing  in  the  indenture  shall  be  construed  to  enlarge 
the  securities  of  any  outstanding  prior  bonds." 

A  sufficient  amount  of  the  General  S^s  of  1987  has  been  reserved  to  retire  this  issue  at  maturity. 


Trustee:  Union  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  3.70  to  4.05  basis 


1903 

4.12 

4.55 

1904 

4.12 

4.375 

1905 

3.80 

4.02 

1906 

3.90 

4.50 

1907 

4.35 

5.00 

1908 

4.12 

4.40 

1909 

4.00 

4.25 

1910 

4.20 

4.40 

1911 

4.25 

4.40 

1912 

4.25 

4.62 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


CHICAGO    &   NORTHWESTERN   RAILWAY 

Consolidated  Mortgage  Sinking  Fund  Currency  7s 

Dated  January  16,  1865  Maturing  February  1,  1915. 

Interest  quarterly,  February  1,  at  the  Company's  office.  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  holders  have  one  vote  for  each  $100  par  value. 

Authorized  $12,900,000  Outstanding  $12,832,000 

(Closed  mortgage) 
Per  mile  .    .  $16,451 

Provisions  of     Under  the  terms  of  the  mortgage  of  the  Chicago  &  Northwestern  General  Mortgage  33-^s  of 
issue:  1987,  no  more  of  these  bonds  may  be  issued. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  780  miles  of  rond  and  equipment,  including 

the  line  from  Chicago  to  Green  Bay,  Wis. 

Sinkiiif;  fund:    Semi-annually  $20,000  is  set  aside  as  a  sinking  fund  to  purchase  these  bonds  at  not  exceeding 
110  and  interest.     If  not  so  purchasable  the  fund  shall  be  invested  as  trustees  deem  proper. 

Equity:  The  above  bonds  are  limited  by  the  terms  of  the  General  Mortgage  33^s  of  1987  to  the  amount 

at  present  outstanding.    They  are  prior  in  lien  to  the  General  334s,  which  provide  for  the  re- 
tirement of  this  issue  at  maturity. 

[  160] 


These  bonds  sold  in  1902  on  a  3.12  to  3.70  basis 


1903 

3.50 

3.85 

1904 

3.60 

3.88 

1905 

3.47 

3.85 

1906 

3.60 

4.35 

1907 

3.95 

5.12 

1908 

3.95 

4.45 

1909 

3.88 

4.50 

1910 

4.10 

4.62 

1911 

3.75 

4.85 

1912 

4.15 

5.25 

These  bonds  arc  considered  a  legal  investment  for  savings  banks  in  New  England. 


SIOUX   CITY   &  PACIFIC   RAILROAD 

First  Mortgage  Gold  3>^s 

Dated  August  1,  1901  Maturing  August  1,  1936 

Interest  payable  February  1  and  August  1  at  the  Company's  office,  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

Authorized  $4,000,000  Outstanding  $3,926,000 

Per  mile  .    .  32,285 

Provisions  of      Of    the    $4,000,000    authorized,  $3,926,000    are    outstanding    as    above,   and    the    balance, 
issue:  $74,000,  is  held  in  the  sinking  funds  of  the  company. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  about  121.58  miles  of  road,  including  the 

line  from  Sioux  City  to  California  Junction,  la.,  70  miles,  and  from  Blair  to  Fremont,  Neb., 
28.4  miles. 

These  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway  Company. 

Trustee-  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Sioux  City  &  Pacific  Railroad  was  chartered  August  1,  1864.  The  road  was  opened  from 
Missouri  Valley  to  Sioux  City  and  from  California  Junction  to  Fremont  on  February  11,  1869.  On 
August  28,  1901,  the  property  was  purchased  by  the  Chicago  &  Northwestern  Railway  Company, 
subject  to  a  mortgage  securing  the  $4,000,000  bonds  mentioned  above,  which  were  assumed  by  the 
purchaser.  Until  1903  the  two  roads  were  operated  independently,  but  at  that  time  they  were  con- 
solidated into  the  Chicago  &  Northwestern  Railwaj'  Company. 

These  bonds  were  sold  in  1909  on  a  4.20  basis 

1910  4.35 

1911  4.375 
December,  1912  4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 

[  101  ] 


FREMONT,   ELKHORN    &   MISSOURI   VALLEY   RAILROAD 

Consolidated  First  Mortgage  Currency  6s 

Dated  October  1,  1883  Maturing  October  1,  1933 

Interest  payable  April  1  and  October  1  at  Company's  office,  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $25,000  per  mile  Outstanding  $7,725,000 

Per  mile  .    .  6,590 

Provisions  of  Besides  the  amount  outstanding  above,  there  are  $10,675,000  of  this  issue  owned  by  the  Chicago 
&  Northwestern  Railway  Company,  and  pledged  under  its  Extension  4s  of  1926.  No  further 
bonds  of  this  issue  may  be  issued. 


issue: 


Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  1,172  miles  of  road  including  the  lines  from 

Fremont,  Neb.,  via  Albion,  to  the  Nebraska- Wyoming  State  Line,  469  miles,  and  from  Da- 
kota Junction,  Neb.,  to  Deadwood,  S.  D.,  145  miles.  This  issue  is  further  secured  by  a  first 
mortgage  on  all  the  equipment  of  the  Unes  in  question  and  future  acquisitions. 

These  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway. 

The  Fremont,  Elkhorn  &  Missouri  Valley  Railroad  was  chartered  January  20,  1869,  and  the 
road  was  opened  for  traffic  in  August,  1871.  On  September  1,  1901,  this  company  took  over  the 
operation  of  the  Fremont  Branch  of  the  Sioux  City  &  Pacific  Railroad,  under  a  lease  from  the  Chicago 
&  Northwestern  Railway.  On  February  10,  1903,  the  stockholders  and  voting  bondholders  of  the 
latter  company  voted  to  purchase  the  property  and  franchises  of  this  company.  Since  this  consoli- 
dation became  eflfective  in  1903,  the  Fremont,  Elkhorn  &  Missouri  Valley  Railroad  has  been  operated 
as  the  Nebraska  &  Wyoming  Division  of  the  Chicago  &  Northwestern  Railway. 

These  bonds  sold  in  1902  on  a  3.85  to  3.90  basis 


1903 

3.85 

3.95 

1904 

3.80 

3.85 

1905 

3.65 

3.75 

1906 

3.80 

4.05 

1907 

4.20 

1908 

4.05 

4.15 

1909 

3.875 

1910 

4.15 

4.20 

1911 

4.05 

4.125 

December,  1912 

4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  162 


MILWAUKEE    &    STATE   LINE    RAILWAY 
First  Mortgage  Gold  3 '  oS 

Dated  January  2,  lOOfi  Maturing  January  1,  1941 

Interest  payable  January  1  and  July  1,  at  the  Company's  office,  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

Authorized  $2,500,000  Outstanding  $2,500,000 

Per  mile  .    .  50,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  road  from  St.  Francis,  near  Milwaukee, 

Wis.,  to  Lake  Bluff,  111.,  50.24  miles.     They  arc   further  secured  by  a  first  mortgage  on  all 
the  equipment  of  the  line  and  future  acquisitions. 

These  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway. 

Trustee:  Farmers'  Loan  &  Tru.st  Company,  New  York. 

The  Milwaukee  &  State  Line  Railway  Company  was  chartered  February  11,  1J)0.5.  under  tlie 
Iaw,s  of  Wi.sconsin.  The  road  was  completed  with  money  advanced  by  the  Chicago  &  Northwestern 
Railway  Company  and  upon  completion  was  leased  (July  1,  1906)  to  the  latter  company  under  the 
laws  of  Wisconsin,  which  permit  such  action  as  precedent  to  the  final  purchase  and  sale,  which  was 
consummated  January  30,  1909.  On  February  1,  1909,  the  company  begun  operation  as  a  part  of 
the  Chicago  &  Northwestern  Railway  System. 

These  bonds  were  sold  in  1909  on  a  4.25  basis 

1910  4.30 

1911  4.375 
December,  1912  4.40  (bid) 

These  bonds  arc  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hami)shire  and  Rhode 
Island. 


MANITOWOC,    GREEN   BAY    &   NORTHWESTERN    RAILWAY 
First  Mortgage  Gold  S'.js 

Dated  January  2,  190(>  Maturing  January  1,  1941 

Interest  payable  January  1  and  July  1  at  the  Company's  office.  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

Authorized  $3,750,000  Outstanding  $3,750,000 

Per  mile  .    .  33,185 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  road  from  Eland  Junction  via  Green  Bay 

to  Manitowoc,  Wis.,  98  miles,  and  from  Pulaski  to  Gillette,  Wis.,  15  miles,  totalling  113 
miles.  They  are  further  secured  by  a  first  mortgage  on  all  the  equipment  of  the  line  and 
future  acquisitions. 

[  163  ] 


These  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Manitowoc,  Green  Bay  &  Northwestern  Railway  was  chartered  November  22,  1904,  under 
the  laws  of  Wisconsin.  The  road  was  opened  from  Pulaski  to  Gillette,  December  10,  1906,  and 
from  Manitowoc  to  Eland  Junction,  January  15,  1907.  This  road  was  completed  with  money  ad- 
vanced by  the  Chicago  &  Northwestern  Railway,  and  upon  completion  was  leased  (July  1,  1900)  to 
the  latter  company  under  the  laws  of  Wisconsin,  which  permit  such  action  as  precedent  to  the  final 
purchase  and  sale,  which  was  consummated  January  30,  1909.  On  February  1,  1909,  the  company 
began  operation  as  part  of  the  Chicago  &  Northwestern  Railway  System. 

These  bonds  were  sold  in  1909  on  a  4.05  basis 

1910  4.30 

1911  4.37 
December,  1912  4.40 

These  bonds  are  considered  a  legal  investnieat  for  savings  Ijanks  in  New  England  except  Connecticut. 


NORTHWESTERN   UNION   RAILWAY 
First  Mortgage  Sinking  Fund  Gold  7s 

Dated  June  1,  1872  Maturing  June  1,  1917 

Interest  payable  March  1  and  Sei)teniber  1  at  the  Company's  office,  111  Broadway,  New  York. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal. 

Authorized  $3,500,000  Outstanding  $3,3(55,000 

Per  mile  .    .  53,755 

Provisions  of     Of  the  $3,500,000  authorized,  $3,365,000  are  outstanding  as  above,  and  the  balance,  $135,000, 
issue:  is  held  in  the  sinking  fund. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Milwaukee  to 

Fond  du  Lac,  Wis.,  62.63  miles,  and  the  equipment  of  the  line  and  future  acquisitions. 

These  l>onds  ]ia\e  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway. 

Sinking  fund:  Annually  $15,000  is  to  be  applied  to  the  purchase  of  these  bonds  at  not  exceeding  par  and 
interest,  and  if  not  so  purchasable,  to  be  applied  to  the  purchase  of  other  Chicago  &  North- 
western bonds  at  not  exceeding  par.  Bonds  thus  purchased  are  to  be  kept  alive.  $135,000 
of  this  issue  are  at  present  held  in  this  sinking  fund. 

Equity:  The  above  bonds  are  i)rior  in  lien  to  the  General  31. ^s  of  1987,  a  sufficient  number  of  which 

have  been  reserved  lo  provide  for  the  retirement  of  this  issue. 

Trustee:  Tlie  Fanners'  Loan  &  Trust  Company,  New  York. 

The  Northwestern  Union  Railwjiy  was  chartered  uu(h'r  the  laws  of  Wisconsin  as  the  Milwaukee 
&  Northwestern  Riiihvay  on  February  2."),  1S71.     It  look    its   i)rcseul  name   May  4,   1872.     The 

[   Ki-l  J 


road  was  opened  for  traffic  Sei>teinber  17,  1873,  ami  for  its  construction  the  above  issue  was  exe- 
cuted under  the  guarantee  of  the  Chicago  &  Northwestern  Railway  Company,  which  operated  the 
line  as  a  proprietary  road  until  it  was  consolidated  into  the  Chicago  &  Northwestern  System  in  1888. 

These  bonds  were  quoted  in  1909  on  a  4.35  basis  (bid) 

1910  4.45 

1911  4.15 
December,  1912  4.95 

These  bonds  are  considered  a  legal  investment  for  New  England  savings  banks. 


IOWA,   MINNESOTA   &  NORTHWESTERN   RAILWAY 
First  Mortgage  Gold  3^  2S 

Dated  January  1,  1900  Maturing  January  1,  1935 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

Authorized  $3,900,000  Outstanding  $3,900,000 

Per  mile  .    .  20,103 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  194.16  miles  of  line  extending  from  Belle 

Plain,  la.,  via  Mason  City,  to  Fox  Lake,  Minn.,  also  on  equipment  and  future  acquisitions. 

These  bonds  have  been  ASSUMED  by  the  Chicago  &  Norlhwcstern  Railway. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Iowa,  Minnesota  &  Nortlnveslcrn  Railway  fincorporated  under  the  laws  of  Iowa)  was  con- 
structed by  funds  of  the  Chi<ago  «Sj  Nortinvcstcrn  ]{ailway.  In  1 !)()()  it  was  completed  and  opened 
for  traffic,  and  became  an  integral  part  of  tlie  Chicago  &  Northwestern  System. 

These  bonds  were  quoted  in  1909  on  a  4.125  basis  (bid) 

1910  4.35 

1911  4.40 
December,  1912           4.40 

These  bonds  arc  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  1«5  ] 


BOYER   VALLEY   RAILWAY 

First  Mortgage  Gold  31  oS 

Dated  December  1,  1898  Maturing  December  1,  1923 

Interest  payable  June  1  and  December  1  at  the  Company's  office.  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  fully  regis  terable. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

Authorized  $1,440,000  Outstanding  $1,440,000 

Per  mile  .    .  16,744 

Security:  These  bonds  are  secured  Ijy  a  first  mortgage  upon  the  company's  lines  from  Wall  Lake  to  Den- 

nison,  la.,  24.8  miles,  and  from  Boyer  to  Mondamin,  la.,  61.30  miles,  totalling  86.10  miles; 
also  upon  equipment  and  future  acquisitions. 

The  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

In  1899  the  Chicago  &  Northwestern  Railway  organized  .several  proprietary  companies  to  pro- 
tect its  existing  traffic  against  competitors  and  to  acquire  new  bu.sines.s.  Among  the  companies  thus 
formed  was  the  Boyer  Valley  Railway  Company  with  its  two  lines,  one  extending  from  Wall  Lake 
to  Deimison,  Iowa,  and  the  other  from  Boyer  to  ^Mondamin,  Iowa.  This  road  was  opened  for  traffic 
on  November  12,  1899.  At  a  meeting  of  the  directors  on  December  8,  1899,  proceedings  were  com- 
menced to  merge  these  proprietary  companies,  and  the  union  was  completed  in  the  succeeding  fiscal 
year. 

These  bonds  were  quoted  in  December,  1912  on  a  4.50  basis  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts, Connecticut  and  Rhode  Island. 


PRINCETON    &   NORTHWESTERN    RAILWAY 

First  Mortgage  Gold  3 '  ^s 

Dated  January  1,  1901  Maturing  January  1,  1926 

Interest  payable  Jamiary  1  ami  July  1  at  the  Company's  office.  111  Broadway,  New  York  City. 

Coupon  bonds  of  $1,000,  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

.\uthorized  $2,100,000  Outstanding  $1,940,000 

Per  mile  .    .  19,400 

$160,000  of  these  bonds  are  held  in  the  sinking  fund  of  the  company. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  comi)any's  lines  as  follows:  Princeton 

to  Marshfield,  Wis.,  85.69  miles;  Grand  Rapids  to  Nekoo.sa,  Wis.,  6.88;  Red  Granite 
Junction  to  Red  Granite,  Wis.,  7.85  miles,  totalling  100.42  miles,  aLso  on  equipment  and  future 
•acquisitions. 

[    l(i(i  J 


These  bonds  have  been  ASSUMED  by  the  Cliicago  &  Northwestern  Railway. 
Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Princeton  &  Northwestern  Railway  Company  (incorporated  under  the  laws  of  Wisconsin) 
was  constructed  from  the  proceeds  of  the  sale  of  the  above  bonds  in  1901.  It  was  opened  for  traffic 
on  December  2  of  that  year  and  became  an  integral  part  of  the  Chicago  &  Northwestern  Railway 
System  from  that  time. 

These  bonds  were  quoted  in  1909  on  a  4.20  basis  (bid) 

1910  4.375 

1911  4.373 
December.  1912           4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


PEORIA    &   NORTHWESTERN   RAILWAY 

First  Mortgage  Gold  3^2^ 

Dated  March  1,  1901  Maturing  March  1,  1926 

Interest  payable  March  1  and  September  1  at  the  Company's  office,  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

Authorized  $2,125,000  Outstanding  $2,125,000 

Per  mile  .    .  25,602 

Securit}':  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  lines  from  Peoria  to  Nelson, 

111.,  a  distance  of  82.98  miles,  also  on  equipment  and  future  acquisitions. 

These  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

Tlie  Peoria  &  Northwestern  Railway  (incorporated  under  the  laws  of  Illinois)  was  constructed 
from  the  proceeds  of  the  sale  of  the  above  bonds  in  1901.  It  was  opened  for  traffic  on  January  20, 
1902,  and  became  an  integral  part  of  the  Chicago  &:  Northwestern  Railway  System  from  that 
time. 

These  bonds  were  quoted  in  1909  on  a  4.20  basis  (bid) 

1910  4.375 

1911  4.375 
December,  1912  4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  Vermont. 


[  107  ] 


MINNESOTA    &   SOUTH   DAKOTA   RAILWAY 

First  Mortgage  Gold  3>^s 

Dated  January  1,  1900  Maturing  January  1,  1935 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $528,000  Outstanding  $528,000 

Per  mile  .    .       16,375 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Tyler,  Minn.,  to 

Astoria,  S.  D.,  a  distance  of  32.20  miles. 

The  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

In  1899,  in  order  to  reach  new  business  developing  in  South  Dakota,  plans  were  made  to  con- 
struct a  line  from  Tyler,  Minnesota,  to  Astoria,  South  Dakota,  to  be  known  as  the  Minnesota  & 
South  Dakota  Railway  Company.  In  1900  this  line  was  completed  from  the  proceeds  of  the  sale  of 
the  above  bonds.  From  the  time  of  its  completion  it  was  merged,  along  with  the  Dakota  Central 
and  the  ]\Iankato  &New  Ulm  Railway  Companies,  into  the  Winona  &  St.  Peter  Railroad.  The 
latter  company,  when  formed,  together  with  the  Boyer  Valley,  the  Boone  Comity,  the  Harlan  & 
Kirkman,  Minnesota  &  Iowa,  and  Iowa,  Minnesota  and  Northwestern  Railway  Comi^anies,  was 
absorbed  by  the  Chicago  &  Northwestern. 

These  bonds  are  considered  a  legal  investment  for  sa\'ings  banks  in  New  England  except  Vermont. 


MINNESOTA   &  IOWA  RAILWAY 

First  Mortgage  Gold  3^3 

Dated  June  1,  1899  Maturing  June  1,  1924 

Interest  payable  June  1  and  December  1  at  the  Company's  office.  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000. 

Authorized  $1,904,000  Outstanding  $1,904,000 

Per  mile  .    .  16,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  lines  from  Burt,  la.,  to 

Vesta,  Minn.,  119.10  miles;  also  on  future  acquisitions. 

These  bonds  li.ave  been  ASSUMED  by  the  Chicago  &  Nortliwcstern  Railway. 

Trustee:  Fanners'  Loan  &  Trust  Cotiiiiaiiy,  New  York. 

[  l<t8  ] 


Like  the  Minnesota  &  Sontli  Dakota  RailwaJ^  the  Minnesota  &  Iowa  Railway  was  constructed 
to  develop  new  business  in  Iowa  and  Minnesota.  In  1900  it  was  consohdated  into  the  Chicago  & 
Northwestern  Railway. 

These  bonds  were  quoted  in  100!)  on  a  4.10  basis  (bid) 

1910  4.25 

1911  4.40 
December,  1912  4.45 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


CEDAR   RAPIDS   &   MISSOURI  RIVER  RAILROAD 

First  Mortgage  Currency  7s 

Dated  May  1,  18GC  Maturing  May  1,  1916 

Interest  payable  May  1  and  November  1  at  the  Com{)auy's  office.  111  Broadway,  New  York. 

Coupon  bonds  of  $500  and  .$1,000. 
Authorized  $2,500,000  Outstanding  $2,332,000 

Per  mile  .    .  15,547 

Provisions  of     Under  the  terms  of  the  mortgage  of  the  Chicago  &  Northwestern  General  Mortgage  33^s  of 
issue:  1987,  no  more  of  these  bonds  may  be  issued. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  the  east  bank  of 

the  Des  Moines  River  to  the  Missouri  River  at  Council  Bluffs,  la.,  a  distance  of  149.60  miles,  and 
all  railway  lands,  buildings,  appurtenances  and  franchises  now  owned  or  hereafter  acquired. 

These  bonds  liave  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway  Company. 

Equity:  These  bonds  are  prior  in  lien  to  the  General  3j^s  of   1987,  a  sufficient  number  of  which  have 

been  reserved  to  retire  this  issue  at  maturity. 

The  Cedar  Rapids  &  Missouri  River  Railroad  was  organized  under  the  laws  of  Iowa  on  June 
14,  1859,  and  was  completed  in  February,  1867.  In  1862  it  was  leased  in  perpetuity  to  the  Galena 
&  Chicago  Union  Railroad.  On  June  2,  1864,  the  Galena  &  Chicago  Union  Railroad  consolidated 
with  the  Chicago  &  Northwestern  Railway  under  the  name  of  the  latter.  In  June,  1884,  the  Cedar 
Rapids  &  Missouri  River  Railroad  was  merged  with  the  Chicago  &  Northwestern  Railway. 


These  bonds  sold  in  1903  on 

a  3.72  to  4.10  basis 

1904 

3.90       4.02 

1905 

3.75       5.62 

1906 

4.125 

1908 

4.30       4.45 

1909 

4.45  (bid) 

1910 

4.30  to  4.40 

1911 

4.35       4.375 

December,  1912 

4.95  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Nc 

[  169  ] 


MILWAUKEE,    LAKE    SHORE    &   WESTERN    RAILWAY 
Consolidated  Mortgage  6s 

Dated  May  2,  1881  Maturing  May  1,  1921 

Interest  payable  May  1  and  November  1  at  the  Company's  office.  111  Broadway,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $5,000,000 


Outstanding  $5,000,000 
Per  mile  .    .  12,107 


Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  lines  as  follows:  from 

Milwaukee  north  via  Manitowoc  and  Clintonville,  to  the  Wisconsin-Michigan  State  Line, 
287.44  miles;  Monica  Junction  to  Mercer,  64.83  miles;  Hortonville  to  Oshkosh,  23.10  miles; 
Eland  Junction  to  Wausau,  23.87  miles;  branches  aggregating  13.62  miles;  totalling  412.86 
miles,  all  in  Wisconsin;  also  on  equipment  and  future  acquisitions. 

These  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway. 

Equity :  These  bonds  are  prior  in  lien  to  the  Milwaukee,  Lake  Shore  &  Western  Improvement  and  Ex- 

tension 5s;  also  to  the  Chicago  &  Northwestern  General  3i^4s  of  1987,  a  sufficient  number  of 
which  have  been  reserved  to  provide  for  the  retirement  of  this  issue. 

Trustee:  Central  Trust  Company  of  New  York. 

A  brief  history  of  the  Milwaukee,  Lake  Shore  &  Western  Railway  Company  may  be  found  under 
the  description  of  its  Extension  &  Improvement  Mortgage  Sinking  Fimd  5s  on  page  173. 


These  bonds  sold  in  1902  on 

a  3.30  to  3.70  basis 

1903 

3.55 

3.875 

1904 

3.65 

3.85 

1905 

3.45 

3.80 

1906 

3.67 

4.00 

1907 

3.80 

4.90 

1908 

3.95 

4.17 

1909 

3.90 

4.12 

1910 

4.05 

4.375 

1911 

4.10 

4.30 

1912 

4.00 

4.60 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[170 


MILWAUKEE,   LAKE    SHORE    &   WESTERN    RAILWAY 

Michigan  Division  First  Mortgage  6s 

Dated  June  20,  1884  Maturing  July  1,  1924 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  111  Broadway,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $3,000,000 


Outstanding  $1,281,000 
Per  mile  .    .  15,815 


Equity : 


The  abo^'e  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  the  Wisconsin- 
Michigan  State  Line  via  Watersmeet  to  Radford,  Mich.,  a  distance  of  about  20  miles;  from 
Watersmeet  to  Hurley,  Wis.,  about  60  miles,  totalling  81.28  miles;  also  on  equipment  and 
future  acquisitions. 

These  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway  Company. 

These  bonds  are  prior  in  lien  to  the  Milwaukee,  Lake  Shore  &  Western  Improvement  &  Ex- 
tension 5s  of  1929;  also  to  the  Chicago  &  Northwestern  General  33-^s  of  1987,  a  sufficient 
amount  of  which  have  been  reserved  to  retire  this  issue  at  maturity. 


Trustee:  Central  Trust  Company,  New  York. 

A  brief  history  of  the  Milwaukee,  Lake  Shore  &  Western  Railway  Company  may  be  found  inider 
the  description  of  its  Extension  &  Improvement  Mortgage  Sinking  Fund  5s  on  page  173. 


These  bonds  sold  i 

n  1902  on 

a  3.45  bi 

isis 

1903 

3.70  to  3.95  basis 

1904 

3.65 

3.72 

1905 

3.67 

1906 

3.80 

1909 

3.90 

3.95 

1910 

4.25 

1911 

4.15 

4.35 

1912 

4.22 

These  l)onds  arc  considered  a  le^al  investment  for  savings  banks  in  New  England. 


[   171 


MILWAUKEE,   LAKE    SHORE   &   WESTERN   RAILWAY 

Ashland  Division  First  Mortgage  6s 

Dated  March  2,  1885  Maturing  March  1,  1925 

Interest  payable  March  1  and  September  1  at  the  Company's  office,  HI  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $1,000,000  Outstanding  $1,000,000 

Per  mile  .    .  25,250 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Hurley  to  Ashland, 

Wis.,  a  distance  of  39.62  miles;  also  on  equipment  and  future  acquisitions. 

The  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway. 

Equity:  These  bonds  are  prior  in  lien  to  the  Milwaukee,  Lake  Shore  &  Western  Improvement  and 

Extension  5s;  also  to  the  Chicago  &  Northwestern  General  3V^s  of  1987,  a  suflicient  number 
of  which  have  been  reserved  to  provide  for  the  retirement  of  this  issue. 

Trustee:  Central  Trust  Company  of  New  York. 

A  brief  history  of  the  Milwaukee,  Lake  Shore  &  Western  Railway  Company  may  be  found  under 
the  description  of  its  Extension  &  Improvement  Mortgage  Sinking  Fund  5s  given  below. 

These  bonds  were  quoted  in  1909  on  a  4.10  basis  (bid) 

1910  4.375 

1911  4.40 
December,  1912  4.55 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


MILWAUKEE,   LAKE    SHORE    &   WESTERN   RAILWAY 

Extension  &  Improvement  Mortgage  Sinking  Fund  5s 

Dated  February  1,  1889  Maturing  February  1,  1929 

Interest  payable  February  1  and  August  1  at  the  Company's  office.  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only. 

Authorized  .$5,000,000  Outstanding  $4,148,000 

Per  mile  .    .  6,343 

Provisions  of     Of  the  $5,000,000  authorized,  $4,148,000  are  outstanding  as  above,  and  $40,000  are  held  in 
issue:  the  treasury  of  the  company.     No  more  of  these  bonds  may  be  issued  under  the  terms  of 

the  mortgage  of  the  General  33^s  of  1987. 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  company's  lines  from  Hurley  to  Mercer, 

23.28  miles;  Hurley  to  Osborn,  12.97  miles;  Pratt  Junction  to  Harrison,  17.53  miles;  branches 
and  extensions  to  iron  mines,  34.22  miles;  spurs  to  industrial  establishments,  21.44  miles; 
[  172  ] 


other  bniuclies  10. CI  miles,  totalling  120.05  miles,  all  in  Wisconsin;  also  on  docks,  equipment 
and  future  acquisitions.  Also,  by  a  second  mortgage  on  412.86  miles  covered  by  the  first  lien 
of  the  Milwaukee,  Lake  Shore  &  Western  Consolidated  6s;  on  the  81.28  miles  covered  by  the 
first  mortgage  of  Milwaukee,  Lake  Shore  &  Western,  Michigan  Division  First  6s,  and  on  the 
39.62  miles  covered  by  the  first  lien  of  the  Milwaukee,  Lake  Shore  &  Western  Ashland  Division 
First  6s. 

The  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway. 

Sinking  fund:  Beginning  August  1,  1893,  1%  annually  (but  not  less  than  $25,000  per  annum)  is  to  be  applied 
to  the  purchase  of  these  bonds  at  110  and  interest.  If  not  so  purchasable,  the  money  is  to  be 
invested  in  other  bonds  of  the  company. 

Equity:  These  bonds  are  prior  in  lien  to  the  Chicago  &  Northwestern  Railway  General  3J^2S  of  1987,  a 

sufficient  amount  of  which  have  been  reserved  to  retire  them.  They  are  subject  to  $5,000,000 
Milwaukee,  Lake  Shore  &  Western  Consolidated  6s  of  1921;  to  $1,000,000  Ashland  Division 
6s  of  1925,  and  to  $1,281,000  Michigan  Division  6s  of  1924. 

Trustee:  Central  Trust  Company  of  New  York. 

The  Milwaukee,  Lake  Shore  &  Western  Railroad  was  chartered  March  10,  1870,  under  the  name 
of  the  Milwaukee,  Manitowoc  &  Green  Bay  Railroad  Company.  On  May  31,  1872,  the  name  of 
the  road  was  changed  to  Milwaukee,  Lake  Shore  &  Western  Railroad  Company.  As  the  result  of  a 
foreclosure  and  reorganization  in  1875,  the  company's  name  was  again  changed  to  that  of  the  Mil- 
waukee, Lake  Shore  &  ^Yestern  Railway. 

In  August,  1893,  the  latter  was  merged  into  the  Chicago  &  Northwestern  Railway  Comjiany  and 
is  now  operated  as  the  Ashland  Division  of  the  System. 

These  bonds  sold  in  1902  on  a  3.375  to  3.625  basis 


1903 

3.72 

4.10 

1904 

3.80 

3.90 

1905 

3.72 

3.80 

1906 

3.82 

4.00 

1907 

4.00 

4.10 

1908 

4.05 

4.26 

1909 

3.90 

4.15 

1910 

4.05 

4.30 

1911 

4.125 

4.25 

1912 

4.15 

4.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  Maine. 


[  173  ] 


MILWAUKEE,   LAKE   SHORE    &   WESTERN   RAILWAY 
Marshfield  Extension  First  Mortgage  Currency  5  s 

Dated  October  1,  1892  Maturing  October  1,  1922 

Interest  payable  April  1  and  October  1  at  the  Company's  office.  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $600,000  Outstanding  $400,000 

Per  mile  .    .       10,000 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Wausau  to  Marsh- 

field,  Wis.,  a  distance  of  40  miles;  also  on  equipment  and  future  acquisitions. 

The  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway  Company. 

Equity:  The  bonds  are  prior  in  lieu  to  the  Chicago  &  Northwestern  General  33/2S  of  1987,  a  sufficient 

amount  of  which  have  been  reserved  to  retire  this  issue  at  maturity. 

Trustee :  Union  Trust  Company  of  New  York. 

A  brief  history  of  the  Milwaukee,  Lake  Shore  &  Western  Railway  Company  may  be  found  under 
the  description  of  its  Extension  &  Improvement  Mortgage  Sinking  Fund  5s  on  page  173. 

These  bonds  were  quoted  in  1909  on  a  4.2.5  basis  (bid) 

1910  4.40 

1911  4.35 
December,  1912  4.375 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


WINONA    &   ST.   PETER   RAILROAD 

First  Mortgage  Sinking  Fund  Extension  7s 

Dated  December  1,  1871  Maturing  December  1,  1916 

Interest  payable  June  1  and  December  1  at  the  Company's  office.  111  Broadway,  New  York. 

Coupon  bonds  of  $100,  $500  and  $1,000.  registerable  as  to  principal. 

Authorized  $4,375,000  •  Outstanding  $4,038,500 

Per  mile  .    .  21,948 

Provisions  of     Of  the  $4,375,000  authorized,  $4,038,500  are  outstanding  as  above,  and  $202,500  are  held  in 
issue:  the  sinking  fund.     No  more  of  these  bonds  may  be  issued  under  the  mortgage  of  the  General 

33^s  of  1987. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  St.  Peter,  Minn.,  to 

Watertown,  S.  D.,  a  distance  of  183.98  miles;  also  on  equipment  and  future  acquisitions. 

These  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway  Company. 
[  174  ] 


Sinking  fund:  The  company  agrees  to  set  aside  $'23,000  annually  to  purchase  these  bonds  at  par  and  interest, 
but  if  not  so  purchasable  to  be  invested  in  other  bonds  of  the  Chicago  &  Northwestern  System 
at  par  and  interest  or  invested  under  the  direction  of  the  trustees. 

Equity:  These  bonds  are  prior  in  lien  to  the  General  Sj^^s  of  1987,  a  sufficient  number  of  which  have 

been  reserved  to  retire  this  issue. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  control  of  the  Winona  &  St.  Peter  Railroad  was  purchased  by  the  Chicago  &  Northwestern 
Railway  Company  in  1867.  At  that  time  the  line  extended  from  Winona,  Minnesota,  westerly 
105  miles.     In  1900  it  was  consolidated,  with  other  roads,  into  the  Chicago  &  Northwestern  System. 

These  bonds  were  quoted  in  1909  on  a  4.15    basis  (bid) 

1910  4.375 

These  bonds  were  sold  in  1911  on  a  3.95  basis 
1912  4.00  to  4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


MILWAUKEE,   SPARTA   &   NORTHWESTERN   RAILWAY 

First  Mortgage  4s 

Dated  March  1,  1912  Maturing  March  1,  1947 

Interest  payable  March  1  and  September  1  at  New  York  City. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000.    Coupon  and  registered  bonds  interchangeable. 

Authorized  $15,000,000  Outstanding  $15,000,000 

Per  mile  .    .  84,035 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  entire  line,  consisting  of  178.48  miles  of 

road,  from  Lindwerm  to  Sparta,  Wis.,  169.85  miles;  West  Allis  to  Lindwerm,  Wis.,  8.63  miles; 
also  on  terminal  yards,  tracks  and  buildings  in  the  suburbs  of  Milwaukee. 

These  bonds  have  been  ASSUMED  by  the  Chicago  &  Northwestern  Railway  Company. 

Trustees:  Farmers'  Loan  &  Trust  Company,  New  York,  and  Edwin  S.  Marston,  Esq. 

These  bonds  sold  in  1912,  on  a  4.35  to  4.40  basis 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Rhode  Island. 


[  175  ] 


CHICAGO,  BURLINGTON  &  QUINCY  RAILROAD  COMPANY 


CHICAGO,  BURLINGTON  &  QUINCY  RAILROAD  COMPANY 


HISTORY 

The  Chicago,  Burh'ngton  &  Quincy  Railroad  Company  was  chartered  February  12,  1849,  under 
the  laws  of  the  State  of  Illinois,  as  the  Aurora  Branch  Railroad  Company.  On  June  22,  1852,  this 
name  was  changed  to  the  Chicago  &  Aurora  Railroad  Company,  its  present  title  being  assumed 
February  14,  1855.  At  that  time  the  company's  line  extended  from  Chicago  to  Mendota,  Illinois, 
with  a  branch  from  Aurora  to  West  Chicago.  From  this  small  beginning  has  risen  a  powerful  trunk 
line  system,  the  result  of  purchases  from  time  to  time  of  small  lines  under  foreclosure,  consolidations, 
and  construction  under  the  charters  of  various  proprietary  companies. 

There  were  important  additions  to  the  system  in  1908,  when,  by  deeds  dated  February  15th 
of  that  year,  the  company  acquired  by  purchase  the  following-named  lines  west  of  the  Missouri 
River : 

Atchison  &  Nebraska  Railroad. 

Beaver  Valley  Railroad. 

Burlington  &  Colorado  Railroad. 

Cheyenne  &  Burlington  Railroad. 

Chicago,  Nebraska  &  Kansas  Railroad. 

Colorado  &  Wyoming  Railroad. 

Denver  &  Montana  Railroad. 

Denver,  Utah  &  Pacific  Railroad. 

Kansas  City  &  Omaha  Railway. 

Lincoln  &  Black  Hills  Railroad. 

Lincoln  &  Northwestern  Railroad. 

Nebraska  Railway. 

Nebraska  &  Colorado  Railroad. 

Nebraska,  Wyoming  &  Western  Railroad. 

Omaha  &  North  Platte  Railroad. 

Omaha  &  Southwestern  Railroad. 

Oxford  &  Kansas  Railroad. 

Republican  Valley  &  Wyoming  Railroad. 

Republican  Valley,  Kansas  &  Southwestern  Railroad. 

On  December  1,  1908,  the  company  acquired  by  purchase  the  following-named  roads: 

Fulton  County  Narrow  Gauge  Railway. 
Northern  &  Southern  Illinois  Railroad. 
Big  Horn  Railroad. 
Sioux  City  &  Western  Railway. 

From  1901  to  1907  the  Chicago,  Burlington  &  Quincy  Railroad  was  operated  under  a  lease  by 
the  Chicago,  Burlington  &  Quincy  Railway  Company.  The  lease  was  dated  November  20,  1901, 
and  conveyed  all  the  railroad  and  property  of  the  former  to  the  latter  for  a  term  of  99  years. 
By  the  terms  of  the  lease  the  Railway  Company  assumed  all  the  contracts  and  obligations  of  the 
Railroad  Company  and  agreed  to  pay  as  rental  the  interest  on  outstanding  bonds  and  such  additional 

[  179  ] 


bonds  as  should  be  issued  during  the  term  of  the  lease,  smking  funds,  taxes,  and  quarterly  dividends 
at  the  rate  of  7%  per  annum  on  the  outstanding  capital  stock.  The  Railway  Company  operated 
the  property  until  June  30,  1907,  when  the  lease  was  rescinded  by  mutual  agi-eement,  and  the  Chicago, 
Burlington  &  Quincy  Railroad  Company  again  resumed  possession  of  the  property  and  the  operation 
thereof. 

In  1901  the  Northern  Pacific  Railway  Company  and  the  Great  Northern  Railway  Company 
acquired  an  interest  in  the  capital  stock  of  the  Burlington,  by  the  purchase  thereof  jointly,  and 
issued  in  payment  Joint  Bonds  of  the  Northern  Pacific  Company  and  the  Great  Northern  Company, 
subject  to  the  following  agreement: 

1.  That  the  two  companies  should  purchase  all,  or  not  less  than  two-thirds,  of  the  entire  capi- 
tal stock  of  the  Burlington  Company,  and  in  payment  for  such  stock  they  should  issue 
their  joint  bonds  at  the  rate  of  $1,000,  par  value,  of  such  joint  bonds  for  each  $500,  par 
value,  of  the  stock  so  purchased. 

2.  That  all  the  stock  so  purchased  should  be  assigned  to  the  trustee  of  the  bonds  as  security 
for  the  payment  of  the  same  and  the  interest  thereon. 

3.  That  each  of  the  railway  companies  should  pay  one-half  the  principal  and  interest  on  such 
bonds,  and  that,  if  either  of  such  companies  should  default  its  obligations  to  the  other  in 
respect  to  such  bonds  for  any  interest  whatever,  the  purchased  stock  belonging  to  the  de- 
faulting company  should  become  the  property  of  the  company  not  in  default,  and  the  latter 
should  be  liable  in  severalty  upon  all  the  covenants  in  the  said  bonds  contained. 

At  the  time  of  the  acquisition,  1,066,600  shares  of  the  capital  stock  of  the  Chicago,  Burlington 
&  Quincy  Railroad  Company  were  delivered  to  the  trustee,  and  the  bonds  were  issued  at  the  rate 
of  $1,000,  par  value,  in  bonds  for  each  $500,  par  value,  of  stock  purchased.  On  June  30,  1912,  the 
trustee  of  the  issue  held  1,076,135  shares  of  Burlington  stock,  98%  of  the  entire  amount. 

CONTROLLED   ROADS 

Two  important  railroads  are  controlled  by  the  Chicago,  Burlington  &  Quincy  Railroad  Company: 
the  Quincy,  Omaha  &  Kansas  City  Railroad  Company,  and  the  Colorado  &  Southern  Railway 
Company.  The  former  was  chartered,  June  1,  1897,  under  the  laws  of  the  State  of  Missouri,  as  the 
successor  to  the  Quincy,  Omaha  &  Kansas  City  Railway  Company.  It  was  reorganized  in  1902  and 
consolidated  with  the  Omaha,  Kansas  City  &  Eastern  Railroad  and  the  Kansas  City,  Peoria  & 
Chicago  Railway  Company.  The  entire  capital  stock  of  the  Quincy,  Omaha  &  Kansas  City  Rail- 
road Company  is  held  in  the  treasury  of  the  Chicago,  Burlington  &  Quincy. 

The  Colorado  &  Southern  Railway  was  chartered  December  19,  1898,  under  the  laws  of  Colorado, 
as  the  successor  to  the  Union  Pacific,  Denver  &  Gulf  Railway  Company,  and  the  Denver,  Leadville 
&  Gunnison  Railway  Company.  The  control  of  this  railway  by  the  Chicago,  Burlington  &  Quincy 
means  the  control  also  of  the  so-called  "Colorado  &  Southern  Lines,"  comprising  several  separately 
operated  railroads  whose  capital  stock  is  owned  wholly  or  in  part  by  the  Colorado  &  Southern  Rail- 
way. On  December  21,  1908,  the  directors  of  the  Chicago,  Burlington  &  Quincy  Railway  Company 
ratified  the  purchase  of  a  controlling  interest  in  the  common  stock  of  this  company,  and  on  June 
30,  1912,  it  held  in  its  treasury  236,675  shares  of  common  stock,  11,300  shares  of  first  preferred  stock 
and  60,787  shares  of  second  preferred  stock  outstanding. 


180  ] 


PROPERTY 

The  Chicago,  BurHngton  &  Quincy  Railroad  operated  a  total  mileage,  June  30,  1912,  of  9,074.10 
miles,  of  which  8,808.31  miles  were  owned  in  fee  and  265.79  miles  comprised  lines  and  parts  of  lines 
leased  and  operated  jointly  with  other  companies. 

The  system's  lines  traverse  the  great  corn  belt  of  Iowa  and  Nebraska,  with  a  perfect  network 
of  roads  through  its  especial  territory,  and  its  earnings  are  vitally  dependent  upon  the  prosperity 
of  the  farms.  The  main  lines  extend  from  Chicago  westward  to  Denver,  Colorado,  and  Cheyenne 
and  Powder  River,  Wyoming;  from  Lincoln,  Nebraska,  northwest  to  Huntley,  Montana,  and  Dead- 
wood,  South  Dakota;  southerly  to  St.  Louis,  Kansas  City,  and  ^Metropolis  City,  Illinois;  and 
northerly  to  St.  Paul  and  Minneapolis.  There  are  many  important  branches  in  Illinois,  Iowa, 
Missouri,  Kansas  and  Nebraska.  The  population  of  these  states  in  1890  was  10,903,400;  in  1900, 
12,698,700,  and  in  1910,  14,039,800. 

CAPITALIZATION 

The  capital  account  of  the  Chicago,  Burlington  &  Quincy  Railroad  stood,  June  30,  1912,  as 
follows : 

Capital  stock $110,839,100 

Funded  debt 209,853,000 

Gross  capitalization $320,692,100 

Securities  owned 29,089,858 

Net  capitalization $291,602,242 

Net  capital  per  mile  ojjerated $32,136 

Average  miles  operated      9,074.34 

Net  income  to  net  capital 9-'7% 

Fixed  charges  to  net  income 50.0% 

Margin  of  safety 50.0% 

With  the  exception  of  a  nominal  amount  of  road  which  is  leased  and  operated  jointly  with 
other  companies,  the  entire  railroad  is  owned  absolutely  by  the  company.  The  total  capital  of  the 
road  proper  outstanding  as  above  was  over  $320,600,000,  or  an  average  of  $36,400  per  mile  of  road 
owned  in  fee.  Compared  with  two  other  similar  trunk  line  systems,  its  capital  showing  is  very 
favorable.  The  Chicago  &  Northwestern's  capital  is  $44,585  per  mile,  while  the  Chicago,  Milwaukee 
&  St.  Paul  reports  over  $68,960  per  mile. 

The  net  capital  for  the  three  railroads  figured  on  average  miles  operated  is  about  the  same. 
The  Chicago,  Burlington  &  Quincy  reported  in  1912,  as  above,  $32,136,  with  an  average,  for  the  ten 
years  ending  1912,  of  $30,670  per  mile.  Here  again  it  has  a  slight  advantage  over  its  two  compet- 
ing systems,  the  Chicago  &  Northwestern  showing  an  average  for  the  decade  of  $33,546  and  the 
Chicago,  Milwaukee  &  St.  Paul  of  $36,450  per  mile. 

The  three  railroads  in  question  have  proved  substantial  revenue  earners.  In  this  respect  the 
Chicago  &  Northwestern  has  a  slight  advantage,  averaging  for  ten  years  a  net  income  of  9.5%  on 
the  net  capital  of  the  road.  The  Burlington  comes  next  with  an  average  of  9.1%,  while  the 
Chicago,  Milwaukee  &  St.  Paul  has  an  average  of  slightly  under  9%. 

Over  a  period  of  ten  years,  ending  1911,  the  margin  of  safety  for  the  company's  bond  issues 
averaged  54%.  During  1912  this  figure  was  50%.  That  this  would  have  been  higher  with  average 
maintenance  charges  is  evidenced  by  a  glance  at  the  comparative  maintenance  figures  of  the  railroad. 
Since  1909,  an  average  of  nearly  $28,500,000  annually  was  spent  on  this  item  alone,  which  was 
probably  above  the  normal  requirements.     Had  the  usual  basis  of  maintenance  been  kept,  the  total 

[  181  ] 


net  income  of  the  road  would  have  been  greater,  the  proportion  of  fixed  charges  to  net  income 
less,  and  the  margin  of  safety  more.  The  actual  margin  of  safety  for  the  underlying  securities,  it 
would  seem,  is  somewhat  higher  than  the  nominal  50%  shown. 

CHARACTER   OF   TRAFFIC 

The  company's  reports  are  very  meagre  and  unsatisfactory  and  among  other  things  the  road  does 
not  itemize  the  character  of  its  traffic.  It  is  known,  however,  as  one  of  the  original  Granger  Lines 
and  its  chief  items  of  tonnage  are  agricultural  products.  During  the  ten  years  ending  191^2  the  traf- 
fic became  more  diversified  than  was  formerly  the  case,  and  while  the  property  is  still  primarily  de- 
pendent upon  grain  for  its  tonnage,  it  has  developed  an  important  traffic  in  many  other  directions. 

Fully  two-thirds  of  gross  earnings  are  represented  by  freight.  The  average  ratio  of  freight  to 
all  traflSc  for  the  ten  years  ending  191^2  was  68%,  while  the  ratio  of  the  Chicago  &  Northwestern 
was  09%,  and  the  Chicago,  Milwaukee  &  St.  Paul  71%. 

Freight  revenue  for  the  fiscal  year  ending  1900  was  $32,557,999.  In  1912  the  total  freight  revenue 
amounted  to  $57,740,418.  Freight  density,  which  was  502,649  in  1900,  increased  to  784,409  in  1911 
and  845,900  in  1912. 

A  decline  in  freight  density  in  1912  was  characteristic  of  almost  all  the  northwestern  roads. 
The  Chicago  &  Northwestern  Railroad  showed  a  freight  density  in  1911  of  703,938  and  in  1912  re- 
ported but  654,871.  The  St.  Paul's  density  declined  from  708,671  in  1911  to  679,782  in  1912.  The 
Burlington,  however,  was  one  of  the  few  systems  to  report  increases  in  density.  Its  1911  figure  of 
784,409  compares  with  845,900  in  1912. 

A  significant  figure  in  the  traffic  statistics  of  a  railroad  is  the  train  load.  It  is  important,  not 
only  because  it  shows  a  decrease  or  increase  of  freight  carried  in  the  average  train,  but  especially 
because  it  affords  a  very  fair  idea  of  the  operating  efficiency  of  the  road.  In  1900  the  train  load  of 
the  Chicago,  Burlington  &  Quincy  averaged  but  197  tons;  in  1912  this  had  mcreased  to  438  tons, 
which  is  far  ahead  of  the  showings  made  by  the  other  two  railroads.  The  Chicago  &  Northwestern 
reported  236  tons  in  1900;  in  1912  the  figure  was  299  tons.  The  Chicago,  Milwaukee  &  St.  Paul 
showed  an  average  train  load  in  1900  of  205  tons;   and  in  1912  of  288  tons. 

Of  the  total  traffic  of  the  system  in  1912  but  24%  was  represented  by  passenger  transportation, 
and  this  was  about  the  average  for  the  decade.  In  1900  passenger  earnings  amounted  to  but 
$10,384,408;  by  1912  this  figure  had  more  than  doubled,  being  $21,083,419.  Passenger  density, 
likewise,  increased  from  62,188  in  1900,  to  121,314  in  1912.  The  average  passenger  density  for  the 
decade  ending  June  30,  1912,  was  105,320,  while  the  average  for  the  same  period  on  the  Chicago  & 
Northwestern  System  was  109,675  and  on  the  St.  Paul  slightly  over  80,700. 

EARNINGS 

The  earning  record  of  the  Chicago,  Burlington  &  Quincy  is  by  far  the  most  remarkable  of  any 
of  the  northwestern  trunk  systems.  Below  are  shown  the  gross  and  net  earnings,  also  earnings  per 
mile  for  the  years  1907  to  1912  inclusive: 

Year  Average  miles  Gross  Per  mile  Net  Per  mile 

operated  earnings  earnings 

1907 9,122  $82,473,251  $9,041  $23,568,263  $2,584 

1908 9,236    78,459,064  8,495  22,473,839  2,433 

1909 9,282    79,414,357  8,556  24,066,598  2,593 

1910 9,023    87,869,571*  9,738  24,858,552  2,755 

1911 9,071     88,272,208*  9,730  28,730,282  3,167 

1912 9,074     86,723,067*  9,557  26,076,119  2,874 

*  Excluding  the  earnings  of  the  Colorado  &  Southern  lines  and  the  Quincy,  Omaha  &  Kansas  City  Railroad. 

[  182  ] 


The  gross  earnings  for  1907  were  higher  than  at  any  time  in  the  previous  history  of  the  road. 
During  1908  and  1909,  as  will  be  seen  by  the  above  table,  there  was  a  nominal  setback,  from  which 
full  recovery  was  shown  in  1910.  In  spite  of  the  generally  poor  railroad  year  in  1911,  earnings 
showed  a  slight  increase  over  1910,  declining  nominally  in  1912  notwithstanding  the  gain  in  volume 
of  traffic. 

To  realize  fully  the  growth  in  earnings,  it  is  necessary  to  go  back  to  1897.  The  company  re- 
ported gross  earnings  of  $35,526,186  in  that  year.  By  1901  these  had  increased  to  $50,051,989.  In 
1901  net  earnings  were  $17,610,098,  or  $2,271  per  mile  of  road  operated.  It  will  be  seen  that  since 
1901  gross  earnings  have  increased  over  $36,600,000  and  net  earnings  nearly  $8,500,000,  or,  roughly, 
over  73%  and  48%  resjjectively. 

During  the  fiscal  year  of  1912  the  Chicago  &  Northwestern  reported  a  gross  revenue  of  $73,698,- 
000  and  a  net  revenue  of  $21,000,000.  The  St.  Paul  reported  gross  earnings  of  $63,122,000  and  net 
earnings  of  $15,380,000.  The  Northwestern  showed  gross  earnings  per  mile  of  $9,378  and  net  earn- 
ings per  mile  of  $2,672,  while  the  St.  Paul  showed  $8,404  and  $2,049  respectively.  These  figures 
place  the  Chicago,  Burlington  &  Quincy  in  an  extremely  favorable  comparative  position,  its  gross 
earnings  in  1911  being  $9,557  and  its  net  earnings  $2,874  ])er  mile. 

MAINTENANCE 

The  policy  of  spending  money  liberally  in  maintenance  accounts,  which  has  characterized  the 
Burlington  in  recent  years,  was  continued  up  to  1911,  when  there  was  a  nominal  decrease.  In  fact, 
maintenance  figures,  which  in  1906  were  considered  well  above  the  basis  of  normal  maintenance, 
were  far  surpassed  in  the  years  1907  to  1912  inclusive. 

\'ear  Maintenance  Total  Maintenance    Per  cent  of  total  to 

Way  Equipment 

1907 $14,445,867  $14,725,632 

1908 14,603,477  12,501,461 

1909 13,203,214  13,510,266 

1910 15,725,461  15,057,165 

1911 12,406,278  14,761,138 

1912 13,541,030  14,294,033 

As  will  be  seen  by  the  foregoing,  over  $168,000,000  was  spent  for  upkeep  during  the  six  years, 
an  average  of  over  $28,000,000  a  year,  and  nearly  $3,100  per  mile.  Here  again  the  Burlington  com- 
pares favorably  with  the  Northwestern  and  the  St.  Paul  Systems,  which  in  1912  showed  total  main- 
tenance charges  per  mile  of  $2,410  and  $2,462  respectively,  and  averages  for  the  six  years  somewhat 
under  these  figures. 

*  Excluding  the  maintenance  charges  of  the  Colorado  &  Southern  and  the  Quincy,  Omaha  &  Kansas  City  Railroad. 


maintenance 

per  mile 

gross  earnings 

$29,171,499 

$3,198 

35.4% 

27,104,938 

2,935 

34.7 

26,713,480 

2,878 

33.7 

30,782,626* 

3,412 

34.9 

27,167,417* 

2,995 

30.6 

27,835,063* 

3,068 

32.1 

[  183  ] 


ADDITIONS   AND   BETTERMENTS 

Below  are  tabulated  the  amounts  spent  for  additions  and  betterments  from  1907  to  1911  inclusive: 

Year  Construction  General  Equipment  Total 

1907 $3,700,389  $3,825,821  $7,526,210 

1908 3,914,732  3,999,175      7,913,909 

1909 691,175  6,265      1,412,945 

715,504* 

1910 8,624,852  $65,989      296,352      8,987,193* 

1911 11,144,782  61,284    4,652,151  15,858,217* 

1912 5,922,354  5,773    4,368,761  10,296,889* 

Total  for  six  years $51,995,363 

Average  per  year 8,665,894 

DIVIDENDS 

Like  the  Northwestern  and  the  St.  Paul,  the  Burlington  has  been  a  steady  dividend  payer  for 
almost  its  entire  history.  Since  1873  the  smallest  dividend  paid  in  any  year  was  4%.  The  record 
from  1873  is  as  follows: 


Fiscal  Year 

Rate 

1873-6     .    .    .    10% 

1877     . 

9 

1878     . 

8 

1879     . 

10 

1880     . 

934  (20%  stock) 

1881-7 

8 

1888     . 

7 

1889     . 

4 

1890     . 

43^ 

1891     . 

4M 

Year 

Rate 

1892      .    .    . 

.       m 

1893         .    . 

.    3H 

1894      .    .    . 

5 

1895      .    .    . 

■    5}4 

1896-7      .    . 

4 

1898      .    .    . 

.     ili 

1899-00   .    . 

.     6 

1901     .    .    . 

.    ey2 

1902-7t    .    . 

.     7  (under  lease) 

1908-12  .    . 

.      8 

Since  the  organization  of  the  company,  177  cash  dividends  have  been  paid,  aggregating  408%, 
or  $219,547,105.  Below  are  given  the  annual  surpluses  earned,  over  and  above  dividends  and  charges 
to  income  for  additions  and  betterments,  for  the  years  1907  to  1912  inclusive: 


1907 $4,320,333$ 

1908 22,366 

1909 1,202,191 


Year 

1910 $1,112,611 

1911 3,149,880 

1912  . 1,295,410 


The  Profit  and  Loss  Account  of  the  company  stood  on  its  balance  sheet  of  June  30,  1912,  at 
$88,172,545,  nearly  80%  of  its  capital  stock. 


STATISTICS 


Following  are  given  capitalization,  earnings,  and  traffic  statistics  of  the  Chicago,  Burlington  & 
Quincy  Railroad,  based  on  the  average  miles  operated,  for  the  year  1900  and  for  the  years  1905  to 
1912  inclusive. 


ity  Narrow  Gauge  Railway.  f  6"^  extra  dividend 

t  No  betterments  taken  out. 

[  184  J 


vas  paid  October  1,  1907. 


CHICAGO,  BURLINGTON    &    QUINCY   RAILROAD 


Fiscal 

Capital 

Funded 

Rentals 

Gross 

Owned  by              Net 

Average 

Extra 

year 

stock 

debt 

at  5" 

Q 

capital 

company            capital 

miles 

main 

operated 
7,546 

track 

1900 

$13,046 

$17,781 

Nominal 

$30,827 

$479 

$30,348 

389 

1905 

12.494 

19,221 

31,715 

1,089 

30,626 

8,871 

523 

1906 

12,459 

19,578 

32,037 

1,079 

30,958 

8,896 

526 

1907 

12,151 

18,493 

30,644 

1,556 

29,088 

9,122 

592 

1908 

12,001 

19,821 

31,822 

1,564 

30,258 

9,236 

638 

1909 

11,941 

21,910 

33,851 

1,193 

32,658 

9,282 

662 

1910 

12,284 

23,258 

35,542 

3,205 

32,337 

9,023 

605 

1911 

12,219 

23,129 

35,348 

3,187 

32,161 

9,071 

684 

1912 

12,215 

23,127 

35,342 

3,206 

32,136 

9,074 

Fiscal 

Gross 

Maintenance 

Transportation        Net 

Other 

Total 

Fixed 

Surplus  avail- 

year 

operating 

and  general 

operating 

net 

charges 

able  for 

revenue 

Way          Equipment 

expense 

revenue 

income 

dividends 

1900 

$6,300 

$1,074            $729 

$2,149 

$2,348 

$50 

$2,398 

$1,348 

$1,050 

1905 

7,436 

1,025           1,103 

2,632 

2,677 

34 

2,711 

1,155 

1,556 

1900 

8,335 

1,272           1,533 

2,980 

2,550 

46 

2,596 

1,163 

1,433 

1907 

9,041 

1,584           1,614 

3,259 

2,584 

48 

2,632 

1,190 

1,442 

1908 

8,495 

1,581           1,.354 

3,127 

2,433 

25^ 

2,408 

1,096 

1,312 

1909 

8,556 

1,422           1,456 

3,085 

2,593 

68 

2,525 

1,196 

1,329 

1910 

9,738 

1,743           1,669 

3,572 

2,755 

279 

3,034 

1,559 

1,475 

1911 

9,731 

1,368           1,627 

3,569 

3,167 

240 

3,407 

1,550 

1,857 

1912 

9,557 

1,492           1,576 

3,615 

2,874 

237 

3,111 

1,556 

1,555 

Fiscal 

Divi- 

Other 

Surplus 

Operating          Total         Conducting 

Fixed          Gross 

Net 

Per  cent 

year 

dends         charges 

expenses           mainte-         transpor- 

charges      earnings 

income 

earned  on 

to  m- 

to  gross          nance  to         tation  to 

to  gross       to  gross 

to  net 

capital  stock 

come 

earnings            gross 

gross 

earnings       capital 

capital 

eammgs         earnmgs 

1900 

$772 

$278 

62.7%           28.6%           34.1%, 

21.4%       20.4% 

7.9% 

8.1% 

1905 

996 

560 

63.8 

28.2                35.6 

15.5           23.4 

8.8 

12.4 

1906 

993 

440 

69.3 

33.4               35.9 

14.0           26.0 

8.3 

11.5 

1907 

968 

474 

71.4 

35.4               f 

6.0 

13.1           29.5 

9.0 

11.8 

1908 

960 

$349 

3 

71.4 

34 

7               36.7 

12.9           26.7 

7.9 

10.9 

1909 

955 

245 

129 

69.7 

33 

7               36.0 

14.0           25.3 

7.7 

11.1 

1910 

983 

369 

123 

71.7 

34.9               36.8 

10.1           27.4 

9.4 

12.0 

1911 

977 

532 

347 

67.4 

30.0               36.8 

16.1           27.5 

10.5 

15.2 

1912 

977 

435 

143 

69.9 

32.1               37.8 

16.3           27.1 

9.7 

12.7 

Fiscal 

Train 

Maintenance          Conducting 

Train 

Rate  pe 

mile 

Freight 

Train 

Freight 

Passenger. 

year 

mile 

per  re 

venue         transportation    mile 

densitj' 

load 

to  all 

freight 

earnings 

train  mile              per 

earnings 

Per 

Per 

revenue      traffic 

and 

(gross) 

train  mile 

(net) 

passenger 

ton 

tons 

company 

$1.49         $ 

tVay 
254 

Equipment 

$.172         $ 

769 

$.295 

$.022 

68% 

cars 

1900 

$.0085 

502,649 

197 

44,375 

1905 

2.21 

298 

.325 

784 

803 

.0084 

.0196 

590,819 

327 

66 

50,460 

1900 

2.31 

305 

.329 

828 

848 

.0081 

.0205 

713,568 

365 

70 

58,607 

1907 

2.42 

353 

.426 

873 

768 

.0079 

.0207 

785,999 

389 

68 

59,747 

1908 

2.36 

424 

.432 

872 

632 

.0080 

.0185 

741,438 

379 

69 

57,621 

1909 

2.32 

395 

.404 

858 

663 

.0079 

.0186 

871,151 

382 

67 

57,013 

1910 

2.38 

426 

.408 

874 

692 

.0078 

.0188 

824,016 

381 

60 

50,109 

1911 

2.53 

356 

.423 

929 

822 

.0081 

.0192 

784,409 

406 

65.7 

57,968 

1912 

2.48 

387 

.401 

938 

747 

.0075 

.0191 

845,900 

438 

66.6 

62,860 

*  Deficit. 

(Note:  the  1910,  1911,  and  1912  figures  above  exclude  the  Colorado  &  Southern  Lines  and  the  Quincy,  Omaha  &  Kansas  City 

ad.) 

[  185  ] 


BOND    DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Chicago,  Burlington 

&  Quincy  Railroad  System,  together  with  the  bases  upon  which 

they  have  sold  during  the  decade  ending  December  31,  1912: 


CHICAGO,  BURLINGTON    &    QUINCY   RAILROAD 
General  Mortgage  Currency  4s 

Dated  March  2,  1908  Maturing  March  1,  1958 

Interest  payable  March  1  and  September  1  at  the  National  Bank  of  Commerce,  New  York, 
and  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000. 


Coupon  and  registered  bonds  interchangeable. 


Authorized  $300,000,000 


Outstanding   $61,651,000 
Per  mile  .  .  7,260 


Provisions  of      Of  the  $300,000,000  authorized,  $45,000,000  may  be  issued  to  cover  expenses  already  made 
issue:  by  the  company,  $177,000,000  to  refund  prior  mortgage  bonds,  and  $78,000,000  for  construc- 

tion, acquisitions  and  additions.  There  remain  yet  to  be  issued  $23,000,000  for  expenditures, 
$156,712,000  for  refunding  purposes  and  $58,637,000  for  construction,  a  total  of  $238,349,000. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  8,491.31  miles  of  road,  all  the  important 

terminals  of  the  system,  securities,  realty,  leases,  trackage  rights  and  other  property,  equip- 
ment, and  future  acquisitions.  They  are  secured  by  a  first  mortgage  on  3,328.15  miles  of  road, 
a  second  mortgage  on  5,163.16  miles,  and  a  first  collateral  lien  on  the  controlling  interest  in 
the  common  stock  of  the  Colorado  &  Southern  Railway  Company,  which  was  jiurchased  with 
the  proceeds  of  $19,363,000  of  this  issue. 

Trustees:  The  Central  Trust  Company,  New  York,  and  Oliver  M.  Spencer,  Esq. 

These  bonds  sold  in  1908  on  a  3.85  to  4.15  basis 

1909  3.95       4.05 

1910  4.00       4.15 

1911  4.10       4.20 

1912  4.15       4.30 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[   188  ] 


CHICAGO,  BURLINGTON   &    QUINCY   RAILROAD 

Illinois  Division  Currency  3'2S  and  4s 

Dated  July  1,  1899  Maturing  July  1,  1949 

Interest  payable  January  1  and  July  1  at  the  National  Bank  of  Conimerce,  New  York, 

and  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  princiinil  or  fully  registerable, 
in  lots  of  $5,000  and  multiples. 


Registered  bonds  of  $5,000  and  multiples  thereof. 


Authorized  $85,000,000 


Outstanding  (Sj^s)   $50,835,000 

(43.^s)       34,165,000 

Per  mile 51,610 


Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  1,647.03  miles  of  road,  certain  terminal 

properties  in  Chicago,  St.  Paul,  Minneapolis,  Quincy,  East  St.  Louis,  Burlington,  Clinton, 
Dubuque  and  Winona,  equipment  and  future  acquisitions. 

Equity:  The  above  bonds  are  prior  in  hen  to  the  Chicago,  Burlington  &  Quincy  General  4s  of  1958, 

part  of  which  are  reserved  to  refund  or  retire  this  issue. 

Redemption:      These  bonds  are  redeemable  at  105  and  interest  on  any  interest  date,  after  July  1,  1929,  upon 
six  months'  notice. 


Trustee : 


New  England  Trust  Company,  Boston. 

The  3i^s  of  1949  sold  in  1900  on  a  3.27  to  3.45  basis 


1901 

3.32 

3.42 

1902 

3.30 

3.60 

1903 

3.62 

4.00 

1904 

3.62 

3.95 

1905 

3.60 

3.72 

1906 

3.70 

3.90 

1907 

3.87 

4.40 

1908 

3.80 

4.20 

1909 

3.85 

4.05 

1910 

4.05 

4.20 

1911 

4.10 

4.15 

1912 

4.15 

4.40 

The  4s  of  1949  sold  in  1904  on 

a  3.72  to  3.77  basis 

1906 

3.70 

3.95 

1907 

3.85 

4.25 

1908 

3.75 

4.15 

1909 

3.85 

4.00 

1910 

3.95 

4.07 

1911 

3.98 

4.07 

1912 

4.00 

4.12 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  189  ] 


CHICAGO,  BURLINGTON    &    QUINCY   RAILROAD 
Nebraska  Extension  Sinking  Fund  Currency  4s 

Dated  May  2,  1887  Maturing  May  1 ,  1927 

Interest  payable  May  1  and  November  1  at  the  National  Bank  of  Commerce,  New  York, 

and  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable  in  lots  of  $5,000. 

Registered  bonds  of  $5,000. 

Authorized  $29,441,000  Outstanding  $22,543,000 

Per  mile  .    .  15,330 

Security:  The  above  bonds  are  secured  by  a  direct  first  mortgage  or  a  first  collateral  trust  on  1,471.41 

miles  of  road,  equipment  and  future  acquisitions.  They  are  secured  by  a  direct  first  mortgage 
on  296.91  miles  of  road  and  in  effect  a  first  mortgage  on  1,174.50  miles,  being  a  first  collateral 
lien  secured  by  a  deposit  of  entire  issues  of  first  mortgage  bonds  aggregating  $23,494,200, 
covering  the  above  mileage. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Chicago,  Burlington  &  Quincy  General  4s  of  1958,  a 

.part  of  which  are  reserved  to  refund  or  retire  this  issue.  Since  April  20,  1909,  the  company 
has  offered,  subject  to  change  without  notice,  to  convert  this  issue  at  par  into  General  Mortgage 
4s  of  1958. 

Sinking  fund:  An  annual  amount  equal  to  1%  of  the  par  value  of  bonds  issued  is  payable  annually  on  May  1 
to  be  applied  to  the  purchase  of  these  bonds  at  not  exceeding  110  and  interest,  the  bonds  so 
purchased  to  be  cancelled.    Already  $6,898,000  have  thus  been  cancelled. 


Trustee: 


New  England  Trust  Company,  Boston. 

These  bonds  sold  in  1900  on  a  3.25  to  3.50  basis 


1901 

3.25 

3.40 

1902 

3.30 

3.57 

1903 

3.50 

3.87 

1904 

3.55 

3.75 

1905 

3.45 

3.65 

1906 

3.50 

3.85 

1907 

3.85 

4.45 

1908 

3.80 

4.15 

1909 

3.82 

4.05 

1910 

3.90 

4.15 

1911 

4.00 

4.30 

1912 

4.05 

4.30 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[   190 


CHICAGO,  BURLINGTON    &  QUINCY   RAILROAD 
Debenture  Currency  5s 

Dated  May  1,  1883  Maturing  May  1,  191.'5 

Interest  payable  May  1  and  November  1  at  the  Bank  of  Commerce,  New  York, 

and  Boston. 

Coupon  bonds  of  $1,000,  reglsterable  as  to  principal. 
Authorized  $9,000,000  Outstanding  $7,162,000 

Security:  The  above  bonds  are  not  secured  by  a  mortgage,  but  are  a  direct  obligation  of  the  company. 

They  are  prior  in  lien  to  the  General  4s  of  1958,  a  sufficient  number  of  which  are  reserved  to 
retire  this  issue  at  maturity.  Since  April  20,  1909,  the  company  has  offered,  subject  to  change 
without  notice,  to  convert  this  issue  into  General  4s  of  1958. 

These  bonds  sold  in  1900  on  a  3.80  to  4.15  basis 


1901 

3.70 

4.15 

1902 

3.87 

4.25 

1903 

4.00 

4.45 

1904 

3.90 

4.30 

1905 

3.75 

4.10 

1906 

3.82 

4.55 

1907 

4.25 

over  6.00 

1908 

4.20 

5.60 

1909 

4.10 

5.10 

1910 

4.-25 

4.80 

1911 

4.20 

4.60 

These  bonds  are  considered  a  legal  investment  for  New  Hampshire  and  Rhode  Island  savings  banks. 


CHICAGO,  BURLINGTON    &    QUINCY   RAILROAD 
Iowa  Division  First  Mortgage  Sinking  Fund  Currency  4s  and  5s 

Dated  October  1,  1870  Maturing  October  1,  1919 

Interest  payable  A|)ril  1  and  October  1  at  the  National  Bank  of  Commerce,  New  York, 

and  Boston. 

Coui)on  ])onds  of  $1,000,  reglsterable  as  to  principal. 

Authorized  (5s)  $3,000,000  Outstanding  (5s)  $2,274,000 

(4s)  12,502,000  (4s)     5,639,000 

Per  mile  ....  8.880 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  891.02  miles  of  road,  equipment  and  future 

acquisitions;   including  the  line  from  Burlington   to  Pacific  Junction,   la.,  270.4   miles,  and 
branches,  also  a  first  mortgage  on  85.69  miles  of  second  track  in  Iowa. 

Equity:  They  are  prior  in  lien  to  the  Chicago,  Burlington  &  Quincy  General  4s  of  1958,  a  sufficient 

number  of  which  are  reserved  to  retire  this  issue  at  maturity. 
[  191  ] 


Redemption:  The  4s  of  1919  are  redeemable  for  the  sinking  fund  at  par  and  interest.  The  5s  of  1919  are 
redeemable  for  the  sinking  fund  at  105  and  interest.  If  not  purchasable  for  less,  they  shall 
be  drawn  by  lot. 

Sinking  fund:  An  amount  equal  to  1^2%  of  the  par  value  of  the  bonds  issued  is  payable  October  1  of  each 
year  to  be  applied  to  the  purchase  of  the  bonds  as  above.  Bonds  so  purchased  are  to  be  can- 
celled.  At  present  $6,863,000  of  the  4s  of  1919  have  been  cancelled  and  $725,000  of  the  5s  of  1919. 

The  4s  of  1919  sold  in  1900  on  a  3.47  to  3.77  basis 


1901 

3.47 

3.72 

1902 

3.52 

3.75 

1903 

3.65 

3.95 

1904 

3.80 

3.95 

1905 

3.67 

3.87 

1906 

3.72 

4.02 

1907 

3.80 

4.45 

1908 

3.87 

4.45 

1909 

3.80 

4.10 

1910 

4.00 

4.20 

1911 

4.02 

4.15 

1912 

4.10 

4.30 

1900  on  a  3.72 

to  3.95 

1901 

3.80 

3.90 

1902 

3.70 

3.85 

1903 

4.20 

1904 

4.125 

1905 

4.02 

1907 

4.35 

4.55 

1908 

4.30 

4.45 

1909 

3.95 

4.30 

1910 

4.375 

1911 

4.22 

4.30 

1912 

4.15 

4.30 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 

CHICAGO,  BURLINGTON   &    QUINCY  RAILROAD 
Denver  Extension  Collateral  Trust  Sinking  Fund  Currency  4s 

Dated  December  1,  1881  Maturing  February  1,  1922 

Interest  payable  February  1  and  August  1  at  the  National  Bank  of  Commerce,  New  York, 

and  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $7,968,000  Outstanding  $7,310,200 

Per  mile  .    .  19,785 

Provisions  of      Of  the  amount  authorized,  $4,876,100  are  held  in  the  sinking  fund,  $657,800  have  been  ex- 
i.ssue:  changed  for  General  4s  of  1958  and  cancelled,  $351,000  are  in  the  treasury  of  the  company, 

and  the  balance,  $2,083,100,  is  outstanding  in  the  hands  of  the  public. 
[  192  ] 


i 


Security:  The  above  bonds  are  secured,  in  effect,  by  a  first  mortgage  on  369.48  miles  of  road  tiirough 

collateral  as  follows:  $3,942,000  (entire  issue)  Republican  Valley  Railroad  First  Mortgage 
5s  of  1922  covering  194.61  miles  and  $4,026,000  (entire  issue)  Burlington  &  Colorado  Railroad 
First  Mortgage  5s  of  1922  covering  174.87  miles  of  road.  They  are  additionally  secured  by  a 
deposit  of  $540,000  out  of  a  total  of  $2,105,000  Republican  Valley  Railroad  First  ^Mortgage  6s 
of  1918,  covering  180.39  miles  of  road.  The  above  bonds  dej)osited  hereunder  are  prior  in 
lien  to  the  Chicago,  Burlington  &  Quincy  General  4s  of  1958,  which  provide  for  the  retirement 
of  this  issue. 

Redemption :  The  above  bonds  are  redeemable  for  the  sinking  fund,  at  not  exceeding  par  and  interest,  on  any 
January  20  and  July  20  upon  due  notice.     If  not  purchasable  for  less,  they  shall  be  drawn  by  lot. 

Sinking  fund :  Payable  January  1  and  July  1  in  each  year,  $79,680  per  annum  is  to  be  applied  to  the  purchase 
or  redemption  of  these  bonds  as  above,  the  bonds  so  acquired  to  be  kept  alive  in  the  sinking 
fund,  and  interest  thereon  added  to  the  semi-annual  payments. 


Trustee: 


New  England  Trust  Company,  Boston. 


1900  on  a  3.80  to  3.98  fc 

1901 

3.82 

3.95 

1902 

3.75 

3.98 

1903 

3.90 

4.95 

1904 

3.85 

4.10 

1905 

3.75 

3.92 

1906 

3.77 

4.00 

1907 

3.95 

4.30 

1908 

3.90 

4.30 

1909 

3.95 

4.125 

1910 

4.00 

4.125 

1911 

4.02 

4.10 

1912 

4.00 

4.05 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  Maine. 

CHICAGO,  BURLINGTON    &    QUINCY   RAILROAD 

Sinking  Fund  Currency  Plain  4s 

Dated  September  1,  1881  Maturing  September  1,  1921 

Interest  payable  March  1  and  September  1  at  the  National  Bank  of  Commerce,  New  York, 

and  Boston. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $4,300,000 
Provisions  of 


Outstanding  $3,667,000 


Of  the  amount  authorized,  $2,719,000  bonds  are  held  in  the  sinking  fund,  $633,000  have  been 
issue:  exchanged  for  General  4s  of  1958  and  cancelled,  $237,000  are  in  the  treasury  of  the  com- 

pany, and  the  balance,  $711,000,  is  in  the  hands  of  the  public. 

Security:  The  above  bonds  are  not  secured  by  mortgage,  but  are  an  obligation  of  the  Chicago,  Burling- 

ton &  Quincy  Railroad.     They  are  prior  in  lien  to  the  General  4s  of  1958,  a  sufficient  number 
of  which  are  reserved  to  retire  this  issue  at  maturity. 
[  193  ] 


Redemption:  The  above  bonds  are  redeemable  for  the  sinking  fund,  at  not  exceeding  par  and  interest.  If 
not  purchasable  for  less,  they  shall  be  drawn  by  lot. 

Sinking  fund:  $43,000  is  payable  annually,  on  August  1,  to  be  applied  to  the  purchase  or  redemption  of  these 
bonds  for  the  sinking  fund  at  not  exceeding  par  and  interest.  The  bonds  so  acquired  are  held 
uncancelled  and  the  interest  thereon  is  added  to  the  annual  payments. 

Trustee:  New  England  Trust  Company,  Boston. 

These  bonds  sold  in  1901  on  a  4.00  basis 


190i2 

4.00 

1903 

3.67  to  3.95  1 

1904 

3.80 

3.95 

1905 

3.70 

3.87 

1906 

4.10 

4.20 

1907 

5.00 

1909 

3.95 

4.10 

1910 

4.10 

4.30 

1911 

4.10 

4.125 

1912 

4.10 

4.20 

These  bonds  are  considered  a  legal  investment  for  New  Hampshire  and  Rhode  Island  savings  banks. 

BURLINGTON    &   MISSOURI   RIVER   RAILROAD 
Consolidated  Sinking  Fund  Currency  6s 

Dated  July  1,  1878  Maturing  July  1,  1918 

Interest  jiayable  January  1  and  July  1  at  the  National  Bank  of  Commerce,  New  York, 
and  Boston. 

Coupon  bonds  of  $600  and  $1,000. 

Authorized  $14,000,000  Outstanding  $13,613,000 

Per  mile  .  ".  29,920 

Provisions  of      Although  the  total  amount  authorized  is  $14,000,000,  that  amount  is  limited  by  the  terms  of 

issue:  the  General  Mortgage  4s  of  1958  to  $13,751,000.     Of  this  amount  $10,103,800  are  held  in 

the    sinking  fund,   $138,000    have    been    exchanged  for  General  4s  of   1958  and   cancelled, 

$109,600  of  the  bonds  outstanding  are  in  the  treasury  of  the  company,  and  the   balance, 

$3,399,600,  is  in  the  hands  of  the  public. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  454.65  miles  of  road,  land  grants,  equip- 

ment, and  future  acquisitions  of  those  miles.  They  are  additionally  secured  by  a  deposit  with 
the  trustee  of  $1,565,000  out  of  a  total  of  $2,105,000  Republican  Valley  Railroad  First  Mortgage 
6s  of  1919,  covering  180.39  miles.  These  bonds  are  prior  in  lien  to  the  General  4s  of  1958,  an 
equal  amount  of  which  have  been  reserved  to  retire  this  issue. 

Redemption :      These  bonds  are  rcdeemiible  for  the  sinking  fund  at  par  and  interest  on  December  1  and  .lunc  1 
of  oacli  year.     If  not  purclinsablo  for  loss,  they  sliall  be  drawn  by  lot. 

Sinking  fund :     The  interest  on  these  bonds  held  in  the  sinking  fund  (amounting  on  June  30, 1912,  to  $10,103,800) 
is  to  be  applied  scmi-animally  to  the  purchase  or  i-edemption  of  this  issue  at  not  exceeding  par 
[  194  ] 


and  interest,     'i'lie  l)onds  so  acquired  are  to  ))0  liold  alive  in  llie  sinking  fund  and  interest 
thereon  added,  thus  retiring  this  issue  at  maturity. 

Trustee :  New  England  Trust  Company,  Boston. 

The  Burlington  &  Missouri  River  Railroad  was  chartered  May  12,  1869,  and  opened  for  traffic 
in  September,  1872.  In  1873  the  Omaha  &  South  Western  Railroad  was  leased,  the  Nebraska  in 
1877,  and  the  Republican  Valley  in  1878.  The  Burlington  &  Missouri  River  Railroad  was  consoli- 
dated with  the  Chicago,  Burlington  &  Quincy  Raih-oad  in  1880,  the  bonds  of  all  the  above-mentioned 
companies  being  assumed  by  the  latter  at  that  time. 

These  bonds  sold  in  1900  on  a  4.125  to  4.65  basis 


1901 

4.125 

4.375 

1902 

4.125 

4.50 

1903 

4.45 

4.80 

1904 

4.65 

4.80 

1905 

4.70 

1908 

5.30 

1909 

5.70 

1910 

5.50 

5.60 

1911 

5.40 

5. .50 

nber,  1912 

5.60  (hid) 

The.se  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 

REPUBLICAN   VALLEY   RAILROAD 
First  Mortgage  Sinking  Fund  Currency  6s 

Dated  July  1,  1879  Maturing  July  1,  1919 

Interest  payable  January  1  and  July  1  at  the  National  Bank  of  Commerce,  Boston. 

Coupon  bonds  of  $600  and  $1,000. 

Authorized  $2,643,000  Outstanding  $932,800 

Per  mile  .    .       10,304 

Provisions  of      Although  the  total  amount  authorized  is  $2,643,000,  that  amount  is  limited  by  the  terms  of 
issue:  the  General  Mortgage  4s  of  1958  to  $1,078,000.     Of  this  amount,  $727,800  are  in  the  sinking 

fund,  $145,200  have  been  exchanged  for  General  4s  of  1958  and  cancelled,  $6,200  are  in  the 
treasury  of  the  company,  and  the  balance,  $932,000,  is  in  the  hands  of  the  public. 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  road  from  the  west  line  of  Red  Willow 

County  to  the  west  line  of  Franklin  County,  Neb.,  90.47  miles.  They  are  prior  in  lien  to 
the  General  Mortgage  4s  of  1958,  a  sufficient  number  of  which  have  been  reserved  to  retire 
this  issue. 

These  bonds  have  been  ASSUMED  by  the  Chicago,  Burlington  &  Quincy  Railroad  Com- 
pany. 

Redemption:      These  bonds  are  redeemable  for  the  sinking  fund  at  not  exceeding  par  and  interest.     If  not 
purchasable  for  less,  they  shall  be  drawn  by  lot. 
[  195  ] 


Siuking  f uiid :  The  interest  on  these  bonds  held  in  the  sinking  fund  (amounting  on  June  30,  1912,  to 
$727,800)  is  to  be  applied  annually  to  the  purchase  or  redemption  of  this  issue  at  not  exceeding 
par  and  interest.  The  bonds  so  acquired  are  to  be  held  alive  in  the  sinking  fund  and  interest 
thereon  added,  thus  retiring  this  issue  at  maturity. 

Trustee :  New  England  Trust  Company,  Boston. 

The  Republican  Valley  Railroad  was  built  in  1877-78,  extending  from  Red  Cloud  to  Bloom- 
ington.  The  Burlington  &  Missouri  River  Railroad  acquired  control  and  its  accounts  were  consol- 
idated with  the  accounts  of  that  company.  In  1882  the  property  of  the  Republican  Valley  Railroad 
was  conveyed  to  the  Chicago,  Burlington  &  Quincy  Railroad  Company. 

These  bonds  sold  in  1900  on  a  5.45  basis 


1901 

5.05  to  5.40  basis 

1902 

5.30 

5.55 

1903 

5.55 

1904 

5.55 

5.70 

1905 

5.55 

5.70 

1906 

5.65 

1907 

5.65 

5.75 

1908 

5.40 

5.80 

1909 

5.75 

(bid) 

1910 

5.55 

1911 

5.50 

December,  1912 

5.60  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


TARKIO   VALLEY   RAILROAD 
First  Mortgage  Sinking  Fund  Currency  7s 

Dated  June  1,  1880  Maturing  January  1,  1920 

Interest  payable  June  1  and  December  1  at  the  Second  National  Bank.  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $430,000  Outstanding  $30,000 

Per  mile  .    .        1,070 

Provisions  of      Although  the  total  amount  authorized  is  $430,000,  that  amount  is  limited  by  the  terms  of  the 
issue:  General  Mortgage  4s  of  1958  to  $133,000.     Of  those  not  in  the  hands  of  the  public,  $41,000 

have  been  retired  by  the  sinking  fund  and  cancelled,  and  $62,000  have  been  exchanged  for 
General  Mortgage  4s  of  1958  and  cancelled. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Branch  from  Corning,  Mo.,  to  the  con- 

nection with  the  Chicago,  Burlington  &  Quincy  Railroad  in  Page  County,  la.,  27.61  miles. 
They  are  further  secured  by  a  first  mortgage  on  all  the  equipment  and  future  acquisitions  of 
the  line.  They  are  prior  in  lien  to  the  General  Mortgage  4s  of  1958,  which  provide  for  the 
retirement  of  this  issue. 

[  196  ] 


These  bonds  are  GUARANTEED  as  to  PRINCIPAL,  INTEREST,  and  SINKING  FUND 
by  the  Kansas  City,  St.  Joseph  &  Council  Bluffs  Railroad  Company,  and  were  ASSUMED 
by  the  Chicago,  Burlington  &  Quincy  Railroad  Company. 

Redemption:      These  bonds  are  redeemable  for  the  sinking  fund  at  not  exceeding  par  and  interest.     If  not 
purchasable  for  less,  they  shall  be  drawn  by  lot. 

Sinking  fund:     $11,000  annually  Is  to  be  applied  to  the  purchase  or  redemption  of  these  bonds  at  not  exceed- 
ing par  and  interest,  bonds  so  acquired  to  be  cancelled. 

The  Tarkio  Valley  Railroad  was  completed  in  July,  1880,  as  a  branch  of  the  Kansas  City,  St. 
Joseph  &  Council  Bluffs  Railroad,  whose  property  was  acquired  by  the  Chicago,  Burlington  & 
Quincy  Railroad  Company  in  1901. 

These  bonds  were  bid  in  1909  at  104,  and  in  July,  191'i,  at  1031/^.    No  sales  are  recorded  during  the  decade. 

These  bonds  are  considered  a  legal  in\'estment  for  savings  banks  in  New  England. 


NODAWAY   VALLEY   RAILWAY 
First  Mortgage  Sinking  Fund  Currency  7  s 

Dated  June  1,  1880  Maturing  June  1,  1920 

Interest  payable  June  1  and  December  1  at  the  Second  National  Bank,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $.388,000  Outstanding  $31,000 

Per  mile  .    .  970 

Provisions  of      Althougli  the  total  amount  authorized  is  $388,000,  that  amount  is  limited  by  the  terms  of  the 
i.ssue:  General  Mortgage  4s  of  1958  to  $118,000.     Of  those  not  in  the  hands  of  the  public,  $44,000 

have  been  retired  by  the  sinking  fund  and  cancelled,  and  $43,000  have  been  exchanged  for 
General  Mortgage  4s  of  1958  and  cancelled. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  equipment,  future  acquisitions,  and 

railroad  from  Bigelow  to  Burhngton  Junction,  Mo.,  31.54  miles.     They  are  prior  in  lien  to 
the  General  Mortgage  4s  of  1958,  which  provide  for  the  retirement  of  this  issue. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL,  INTEREST,  and  SINKING  FUND 

by  the  Kansas  City,  St.  Joseph  &  Council  Bluffs  Railroad  Company,  and  were  ASSUMED 
by  the  Chicago,  BurUngton  &  Quincy  Railroad  Company. 

Redemijtion:     These  bonds  are  redeemable  for  the  sinking  fund  at  not  exceeding  par  and  interest.     If  not 
purchasable  for  less,  they  shall  be  drawn  by  lot. 

Siiddng  fund:     $10,000  annually  is  to  be  applied  to  the  purchase  or  redemption  of  these  bonds  at  not  exceed- 
ing par  and  interest,  bonds  so  acquired  to  be  cancelled. 

The  Nodaway  Valley  Railroad  was  completed  in  May,  1880,  as  a  branch  of  the  Kansas  City, 
St.  Joseph  &  Council  Bluffs  Railroad,  whose  property  was  acquired  by  the  Chicago,  Burlington  & 
Quincy  Railroad  in  1901. 

[  197  ] 


These  bonds  sold  in  1903  at  108  to  104 


1904 
1906 

106K 
105 

1909 

104  (bid) 

1910 

103  (bid) 

1911 

102  (bid) 

\   1912 

103K  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[   IDS 


CHICAGO,  MILWAUKEE  &  ST.  PAUL  RAILWAY  COMPANY 


CHICAGO,  MILWAUKEE  &  ST.  PAUL  RAILWAY  COMPANY 


HISTORY 

The  Chicago,  jNIilwaukee  &  St.  Paul  Railway  Company  was  chartered  ^lay  5,  1863,  under  the 
laws  of  Wisconsin,  as  the  ^Milwaukee  &  St.  Paul  Railway  Company.  It  was  organized  at  a  time  when 
there  was  an  open  question  as  to  whether  Chicago  or  [Milwaukee  would  be  the  chief  port  of  Lake 
Michigan.  The  aim  of  the  company  was  to  extend  the  road  into  the  vast  wildernesses  of  jNIinnesota 
and  the  Dakotas,  St.  Paul  at  that  time  being  an  obscure  village  and  jMinneapolis  unknown.  The 
purchase  of  the  St.  Paul  &  Chicago  Railroad,  effected  after  the  organization,  gave  the  road  a  through 
line  from  Milwaukee  to  St.  Paul,  and  in  1874  the  extension  from  INIilwaukee  to  Chicago  completed  a 
continuous  road  between  the  latter  city  and  the  Minnesota  capital. 

It  was  on  February  14,  1874,  that  the  name  of  the  company  was  changed  to  its  present  title. 
Since  then  the  road  has  been  steadily  extended  through  Iowa  and  Minnesota,  and  into  the  Dakotas, 
according  to  the  original  intention.  The  absorption  of  the  jNIilwaukee  &  Northern  Railroad  carried 
the  system  into  the  iron  districts  of  the  ^Michigan  Peninsula;  other  extensions  were  made  into  Omaha 
and  Kansas  City  on  the  south,  Fargo  and  other  points  in  North  Dakota  on  the  north. 

In  1903  the  Chicago,  Milwaukee  &  St.  Paul  Railway  acquired  the  entire  capital  stock  of  the 
Wisconsin  Western  Railroad  Company,  whose  line  extended  from  Wauzeka  to  La  Farge,  Wisconsin. 
In  April,  1906,  the  company  purchased  the  property,  rights  and  franchises  of  the  Duluth,  St.  Cloud, 
Glencoe,  &  Mankato  Railroad  Companies  which  had  a  line  projected  from  Albert  Lea  to  Duluth, 
Minnesota. 

The  complete  line  from  Madison  to  Sioux  Falls,  South  Dakota,  was  opened  for  traffic  Novem- 
ber 5,  1906,  and  the  line  from  Chamberlin  to  Rapid  City,  South  Dakota,  July  29,  1907. 

PUGET   SOUND   EXTENSION 

Undoubtedly  the  most  important  event  in  the  recent  history  of  the  Chicago,  jNIilwaukee  &  St. 
Paul  Railway  was  the  building  of  the  Chicago,  JNIilwaukee  &  Puget  Sound  Railway,  its  Extension  to 
the  Pacific  Coast.  It  had  long  been  apparent  that  such  an  outlet  would  prove  of  great  benefit  to  the 
Chicago,  Milwaukee  &  St.  Paul,  especially  through  the  interchange  of  constantly  increasing  traffic 
between  the  Great  Lakes  and  Puget  Sound. 

On  October  9,  1905,  under  the  laws  of  Washington,  a  company  known  as  the  Pacific  Railway 
Company  was  chartered.  In  the  following  January  the  articles  of  incorporation  were  amended  and 
the  name  of  the  company  was  changed  to  the  Chicago,  Milwaukee  &  St.  Paul  Railway  Company  of 
Washington.  December  31,  1908,  the  name  was  again  changed  to  the  Chicago,  Milwaukee  &  Puget 
Sound  Railway. 

The  entire  capital  stock  of  the  latter  company  ($100,000,000)  is  owned  by  the  St.  Paul.  "The 
Puget  Sound  Company,"  as  it  soon  became  known,  in  turn  owns  all  the  preferred  stock  (.$750,000 
par  value)  and  $748,900  of  the  $750,000  common  stock  of  the  Tacoma  Eastern  Railroad.  The  latter 
was  chartered  July  14,  1890,  under  the  laws  of  Washington,  and  after  a  reorganization  in  1903,  its 
road  was  opened  from  Tacoma  to  Eatonville  on  June  1  of  that  year.     Since  that  time  several  branches 

[  201  ] 


iind  extensions  have  been  added,  sd  that  in  19^2  the  Taeonia  &  Eastern  was  o])erating  nearly  !)()  miles 
of  road,  all  situated  in  the  State  of  Washington. 

From  its  inception,  the  Paget  Sound  was  engaged  in  the  construction  of  a  line  of  railway  from 
the  St.  Paul  Termini  on  the  Missouri  River,  to  Seattle,  Tacoma,  and  other  important  Puget  Sound 
Points.  The  route  chosen  at  that  time  was,  and  is,  quite  inexplicable.  Between  the  Union  Pacific 
and  the  Northern  Pacific  Lines,  there  is  a  wide  belt  of  territory  from  two  to  three  hundred  miles 
broad  which  is  crossed  by  no  east  or  west  road  except  the  diagonal  path  of  the  Oregon  Short  Line. 
A  road  going  through  this  territory  would  tap  a  country  rich  in  coal,  oil  and  mineral  deposits,  and 
have  a  wide  field  to  itself. 

The  Puget  Soimd  chose  a  route  almost  paralleling  that  of  the  Northern  Pacific;  in  fact,  the 
two  lines  cross  and  recross  at  many  points,  and  for  long  stretches  rim  side  by  side.  But  it  has 
amply  justified  itself  as  a  business  proposition.  Completed  May  14,  1909,  the  line  was  opened 
for  traffic  on  August  1st  of  that  year,  and  on  May  28,  1911,  through  passenger  service  between 
Chicago,  Seattle  and  Tacoma  was  instituted.  Within  two  years  after  it  was  opened  for  operation, 
the  Puget  Sound  earned  over  $2,700,000  in  excess  of  its  full  fixed  charges.  During  the  fiscal  year, 
1912,  with  gross  earnings  $1,600,000  greater  than  in  1911,  the  road  showed  a  small  deficit  after 
charges,  which  were  far  heavier  than  in  1911.  Taxes  alone  increased  $525,000,  and  the  company's 
maintenance  charges  were  larger  during  1912  —  probably  more  than  sufficient  to  care  for  the  re- 
quirements of  the  road,  which  is  practically  new. 

Beginning  January  1,  1913,  the  Puget  Sound  was  operated  directly  as  a  part  of  the  St.  Paul 
System.  The  St.  Paul  acquired  a  deed  to  the  physical  property  of  the  Puget  Sound,  and  took 
over  all  its  assets  and  obligations,  assuming  the  latter  as  its  own.  It  is  believed  that  the  financial 
status  of  the  St.  Paul  will  be  materially  strengthened  as  a  result  of  this  merger,  also  that  the  two 
l)roperties  ojierated  as  one  will  show  increased  operating  efficiency. 

PROPERTY 

At  the  close  of  the  fiscal  year  ending  June  30„1912,  the  St.  Paul  operated  an  average  of  7,511.41 
miles  of  main  line.  Of  this  amount,  7,265.90  miles  were  owned  absolutely  by  the  company,  30.50 
miles  were  owned  jointly  with  other  companies,  and  215.01  miles  were  being  operated  under  special 
contract.     The  location  of  the  road  is  as  follows: 

In  Wisconsin      1,783.05  miles 

Illinois 415.03 

Iowa 1,871.13 

Minnesota 1,244.90 

North  Dakota 153.31 

South  Dakota 1,529.66 

Missouri 140.27 

Michigan 159.05 

Total  length  of  main  track 7,296.40 

The  Chicago,  Milwaukee  &  Puget  Sound  Railway,  with  an  average  mileage  in  1912  of  2,059.74 
miles,  is  operated  as  a  separate  sj^stem,  although  in  harmony  with  the  St.  Paul. 

Included  in  the  property  of  the  Chicago,  Milwaukee  &  St.  Paul  Railway  Company  are  1,180.5 
acres  of  coal  lands,  and  the  mining  rights  for  1,256.61  acres,  in  Monroe  and  Marion  Counties,  Iowa. 
These  lands  are  reached  by  the  existing  lines  of  the  company.  It  has  also  acquired  347.13  acres  of 
coal  land,  and  the  mining  rights  for  27,326.62  acres,  in  Bureau,  Putnam,  and  La  Salle  Counties, 
Illinois.  The  title  to  these  lands  was  acquired  by  the  Excelsior  Coal  Company  and  the  St.  Paul 
Coal  Company,  which  are  controlled  by  the  Chicago,  Milwaukee  &  St.  Paul  Railway  Company. 

[  202  ] 


CAPITALIZATION 

From  the  St.  Paul's  balance  sheet  of  June  30,  1912,  the  following  capitalization  figures  are 
conipiletl: 

Capital : 

Common $110,348,200 

Preferred 116,274,900 

Total  capital  stock $232,623,100 

Funded  debt 268,367,155 

Gross  capitalization $500,990,255 

Securities  owned 131,583,158 

Net  capitalization $369,407,096 

Net  capital  per  mile  operated $49,181 

Average  miles  operated 7,511.41 

Net  income  to  net  capital 6.2'/o 

Fixed  charges  to  net  income 56.8% 

Margin  of  safety 43.2% 

With  the  exception  of  245  miles,  which  are  operated  jointly  or  under  special  contract,  the  entire 
road  is  ownied  in  fee.  The  gross  capitalization,  as  above,  was  over  $500,000,000,  or  an  a\'erage  of 
$66,699  per  mile  of  road  operated.  The  relative  figure  for  the  Chicago  &  Northwestern  Railway  is 
$44,266,  while  that  of  the  Burlington  is  $35,342.  It  would  appear  from  this  that  the  capitalization 
per  mile  was  excessive  as  compared  with  other  roads  of  its  class,  and  to  let  these  figures  stand  with- 
out explanation  would  be  extremely  unfair,  since  the  enormous  burden  of  financing  the  Puget  Sound 
Extension  was  primarily  borne  by  the  St.  Paul. 

In  fact,  the  fairer  way  would  be  to  compare  the  capital  of  the  St.  Paul  and  the  Puget  Sound  to- 
gether, with  those  of  similar  trunk  lines,  such  as  the  Great  Northern  and  the  Northern  Pacific. 
Pro  rating  the  heavy  cost  of  its  Puget  Sound  Extension  over  the  total  mileage  of  the  St.  Paul,  and 
using  as  a  basis  9,570  miles,  the  amount  operated  by  both,  we  find  the  net  capital  to  be  $57,060 
(excluding  the  Puget  Sound's  $100,000,000  stock,  all  owned  by  the  St.  Paul),  as  compared  with  the 
net  capital  per  mile  of  the  Northern  Pacific,  which  is  $61,933,  and  the  Great  Northern,  which  is 
$41,874. 

The  St.  Paul  System  as  a  whole,  including  the  Puget  Sound,  does  not  carry  an  unfavorably  high 
capitalization  per  mile,  nor  does  the  cost  of  construction  and  equipment  appear  excessive.  We  find 
the  total  cost  of  road  per  mile  of  the  St.  Paul  &  Puget  Sound  to  be  $61,250,  the  Great  Northern 
$51,900,  and  the  Northern  Pacific  slightly  over  $64,600. 

On  the  basis  of  earnings,  also,  the  Chicago,  JNIilwaukee  &  St.  Paul  Railway  does  not  appear  to 
be  over-capitalized.  During  the  fiscal  year  ending  June  30,  1912,  the  St.  Paul  itself  reported  a  total 
net  income  equivalent  to  6.2%  of  its  net  capital  of  $49,181  per  mile.  The  Chicago  &  Northwestern 
Railway  showed  for  the  same  period  a  total  net  income  equivalent  to  7.6%  on  its  net  capital  per 
mile,  a  figure  slightly  over  $40,600,  while  the  Chicago,  Burlington  &  Quincy  Railroad's  net  income 
to  net  capital  was  but  9.7%  on  $32,136  per  mile.  Had  the  latter's  net  capital  been  as  high  as  that 
of  the  St.  Paul,  its  ratio  of  net  income  to  net  capital  would  have  been  but  6.2%. 

During  the  fiscal  year  of  1912  there  were  no  increases  in  either  class  of  capital  stock.  The  com- 
pany's funded  debt,  however,  received  two  additions,  totalling  $35,794,500;  one  by  the  issue  of 
$1,056,000  of  General  Mortgage  Bonds  of  1989,  and  the  other  by  the  issue  of  $34,893,500  of  Convert- 
ible 4^  2S  of  1932,  for  the  purchase  and  construction  of  additional  lines  of  railway,  for  improve- 
ments and  betterments  and  for  the  purchase  of  new  equipment.    The  total  funded  debt,  June  30, 

[  203  ] 


1912,  was  $208,367,154,  or  $35,729  per  mile,  of  which  $40,768,000  were  in  the  treasury  of  the  company 
and  $227,599,154  were  outstanding  in  the  hands  of  the  pubHc. 

The  company's  net  capital  per  mile,  June  30,  1912,  was  $49,181,  as  compared  with  $44,240  in 
1911.  In  1912  a  net  income  of  6.2%  upon  this  capitalization  was  shown,  as  compared  with  9.0% 
in  1911.  This  decline  of  2.8%  was  due  in  a  large  degree  to  the  loss  in  Other  Income,  due  to  the  failure 
of  the  Puget  Sound  to  pay  dividends  on  its  $100,000,000  capital  stock,  all  of  which  is  owned  by  the 
St.  Paul.  The  company's  net  income  applicable  to  fixed  charges  was  $3,062  per  mile,  being  $930 
less  in  1912  than  in  1911.  Fixed  charges  consumed  56.8%  of  the  net  income,  leaving  a  margin  of 
safety  for  fixed  charges,  which  include  taxes,  rentals  and  interest,  of  43.2%.  This  compares  with 
54.6%  in  1911. 

CHARACTER   OF   TRAFFIC 

The  St.  Paul  is  one  of  the  great  "Granger"  roads  of  the  West,  and  farm  products  make  up  the 
chief  item  of  its  tonnage.  In  1911  nearly  68%  of  the  total  traffic  of  the  St.  Paul  was  represented 
by  its  freight  business,  while  the  average  proportion  of  freight  to  all  traffic  for  the  decade  ending 
1912  was  72%.  Below  are  enumerated  the  salient  freight  statistics  of  the  road  for  the  years  1907  to 
1912  inclusive: 

Year  Freight  Average  Freight  Tons 

revenue  rate  density  carried 

1907 $44,115,059  $.0086  731,299  28,596,041 

1908 40,426,880           .0081  664,153  26,189,853 

1909 42,341,651           .0084  672,460  27,499,704 

1910 44,909,137           .00843  709,119  30,698,915 

1911 44,776,454           .00841  708,671  20,793,047 

1912 42,815,573           .00838  679,782  26,575,784 

We  append  a  comparative  statement,  based  on  the  reports  of  the  company,  showing  the  commod- 
ities transported  during  the  years  above  mentioned: 


Products  of 

1907 

1908 

1909 

1910 

1911 

1912 

Agriculture  .    . 

6,470,914 

5,640,370 

5,868,017 

5,754,165 

5,739,385 

5,179,002 

Animals     .    .    . 

1,776,251 

1,805,431 

1,763,683 

1,646,341 

1,727,269 

1,775,860 

Mines    .    .    .    . 

8,512,230 

7,468,900 

7,948,184 

9,782,608 

7,187,511 

7,531,702 

Forests      .    .    . 

3,794,148 

3,390,160 

3,711,243 

3,851,660 

3,622,107 

3,566,264 

Manufactures  . 

4,776,377 

4,522,248 

4,898,948 

6,056,060 

4,969,968 

5,067,960 

Not  specified    . 

3,266,120 

3,362,744 

3,309,629 

3,608,081 

3,547,407 

3,454,936 

Total  tons 

carried  .    . 

28,596,041 

26,189,853 

27,499,704 

30,698,915 

26,793,647 

26,575,784 

Passenger  earnings  in  1912  represented  22%  of  the  gross  earnings  of  the  company.    Below  are 
tabulated  the  more  important  passenger  statistics  of  the  road  for  the  years  1907  to  1912  inclusive: 

Year  Passenger  Average  Passenger  Passengers 

revenue  rale  density  carried 

1907 $12,102,196  $.022  77,957  12,246,478 

1908 11,883,395  .0192  82,607  14,234,127 

1909 12,774,852  .0189  89,733  15,261,551 

1910 14,786,744  .0188  104,758  17,613,549 

1911 14,077,757  .0186  100,917  16,795,212 

1912 13,936,963  .0203  91,055  14,177,026 

[  204  ] 


^        EARNINGS 
Below  are  given  the  gross  and  net  earnings  for  the  years  1907  to  1912  iiickisive: 

Year  Average  miles  Gross  Per  mile  Net  Per  mile 

operated  earnings  earnings 

1907 7,050  $60,548,555  $8,589  $21,148,144  $2,998 

1908 7,499  56,932,620  7,592  19,709,252  2,636 

1909 7,512  59,897,464  7,974  21,166,225  2,818 

1910 7,512  64,846,894  8,632  20,055,897  2,670 

1911 7,512  64,975,995  8,650  17,922,276  2,386 

1912 7,511  63,122,743  8,404  15,379,587  2,049 

Gross  earnings  recovered  to  the  level  of  before-the-panic  days,  and  except  for  a  nominal  decline 
in  1912,  were  of  satisfactory  volume.  The  net  earnings  per  mile,  however,  reflect  a  discomforting  tend- 
ency. These  figures  have  declined  over  20%  since  1907;  in  fact  they  are  back  to  the  level  of  1902  and 
1903. 

This  decline  in  net  earnings  may  be  accounted  for  in  two  ways.  It  may  be  due  to  high  main- 
tenance charges  or  to  an  increase  in  transportation  costs.  In  the  following  table  the  total  main- 
tenance per  mile  of  the  St.  Paul  is  compared  with  that  of  two  similarly  situated  roads,  for  the  years 
1907  to  1912  inclusive: 

Year  St.  Paul  Chicago  &  Burlington 

Northwestern 

1907 $2,045  $2,334  $3,198 

1908 1,825  1,942  2,935 

1909 1,938  2,131  2,878 

1910 2,156  2,611  3,412 

1911 2,224  2,501  2,995 

1912 2,462  2,410  3,068 

A  glance  at  these  comparative  statistics  will  show  that  the  St.  Paul  has  spent  less  for  mainte- 
nance each  year  than  either  of  the  others.  Even  the  1912  figure,  which  is  the  largest  expenditure  for 
maintenance  in  the  history  of  the  road,  is  not  any  too  favorable.  It  may  be  said,  therefore,  that  the 
decrease  in  net  earning  power  has  not  been  due,  to  any  large  extent,  to  expenditures  on  projierty 
and  equipment. 

The  item  of  transportation  costs  is  the  only  remaining  source  of  this  decline.  Below  are  given 
the  ratios  of  transportation  costs  to  gross  earnings,  and  the  operating  ratios  (expenses  to  earnings) 
of  the  St.  Paul  for  the  years  1907  to  1912  inclusive: 

Year  Transportation  ratio     Operating  ratio 

1907 41.3%  65.09% 

1908 41.2  65.27 

1909 40.3  64.66 

1910 44.1  69.05 

1911 46.7  72.40 

1912 46.3  75.64 

The  above  table  shows  that  in  1912  the  St.  Paul  spent  $46.30  for  cost  of  transportation,  general 
and  traffic  expense  out  of  every  hundred  dollars'  worth  of  business  handled.  It  is  interesting  to  com- 
pare this  figure  with  that  of  the  Burlington,  which  spent  about  $37.80,  and  the  Northwestern,  which 
spent  $45.80.  It  would  seem,  therefore,  that  the  decline  in  net  earnings  during  the  last  six  years  could 
be  explained  by  the  increase  in  the  transportation  ratio  from  41.3%  to  46.3%. 

[  205  ] 


MAINTENANCE 

Although  facing  declining  earnings  during  the  poor  year  ending  1912,  and  with  no  probable 
betterment  in  business  conditions  for  the  present,  the  St.  Paul  management  has  not  cut  the  amount 
spent  for  maintenance  of  roadway  and  rolling  stock,  even  though  the  current  dividend  rate  has  been 
reduced.  Below  is  a  comparative  statement  of  the  amounts  which  the  St.  Paul  has  spent  for  main- 
tenance in  the  years  1907  to  1912  inclusive: 

Year  Maintenance  Total  Per  mile 

Way  Equipment  maintenance 

1907 $5,830,968  $8,589,757  $14,420,725  $2,045 

1908 6,642,820  7,039,270  13,682,090  1,825 

1909 7,288,603  7,270,774  14,559,377  1,938 

1910 8,472,825  7,724,569  16,197,394  2,156 

1911 7,865,401  8,839,384  16,704,785  2,224 

1912 8,812,314  9,681,271  18,493,585  2,462 

To  show  the  maintenance  charges  per  mile  of  other  roads  similarly  situated,  and  also  the  per 
cent  of  maintenance  charges  to  gross  earnings,  the  following  comparative  table  is  appended  for  the 
years  1907  to  1912  inclusive: 

Total  maintenance  per  mile  Total  maintenance  to  gross  earnings 

Year  Burlington  Chicago  &  Burlington  Chicago  &  St.  Paul 

Northwestern  Northwestern 

1907 $3,198  $2,334  35.4%  25.6%  23.8% 

1908 2,935  1,942  34.7  23.4  24.1 

1909 2,878  2,131  33.7  24.6  24.3 

1910 3,412  2,611  34.9  27.0  24.9 

1911 2,995  2,501  30.6  25.7  25.7 

1912 3,068  2,410  32.1  25.7  29.3 

As  will  be  seen  by  the  foregoing,  the  expenditures  of  the  St.  Paul  for  maintenance  were  not  as 
large  as  those  of  the  Burlington  and  the  Chicago  &  Northwestern,  but  it  is  significant  that  the  pro- 
portion of  maintenance  charges  to  gross  earnings  increased  steadily  during  the  six  years  in  question, 
while  the  Burlington  showed  a  considerable  proportional  decrease  and  the  Chicago  &  Northwestern 
remained  practically  stationary. 

The  St.  Paul's  maintenance  is  now  the  highest  in  its  history,  in  spite  of  the  fact  that  in  1907, 
when  the  company  was  putting  itself  in  shape  to  meet  increased  business  on  account  of  the  opening 
of  the  Puget  Sound  Extension,  upkeep  of  property  and  equipment  was  above  normal. 

ADDITIONS   AND    BETTERMENTS 

Below  is  a  comparative  statement  of  the  stuns  spent  for  additions  and  betterments  by  the 
Chicago,  Milwaukee  &  St.  Paul  Railway  for  the  years  1907  to  1912  inclusive: 

Year  Equipment  Construction  Other  betterments  Total 

1907 $8,381,142  $3,817,213  $11,654,652  $23,853,007 

1908 2,737,751  1,714,581  13,882,610  18,334,932 

1909 215,719  832,579  13,869,311  14,917,609 

1910 1,128,401  1,679,048  11,536,109  14,343,558 

1911 3,084,781  1,824,994  7,461,282  12,371,057 

1912 4,319,490  1,605,236  3,456,437  9,381,163 

$19,867,284   $11,473,651    $61,860,391    $93,201,326 
[  206  J 


Below  are   tabulated   the   various   accounts  against  whicli  these  betterments   were    charged 
during  the  years  in  question: 

Year  Equipment  fund  Renewal  fund  Capital  Total 

1907 $5,273,227    $10,145,790  $8,433,991  $23,853,007 

1908 767,219     10,990,707  6,577,006  18,334,932 

1909 121,490*     6,721,025  8,075,094  14,917,609 

1910 7,983,543t  6,360,015  14,343,558 

1911 12,371,057  12,371,057 

1912 9,381,163 

$6,161,936         $35,841,065  $51,198,326         $93,201,326 

Equipment  fund $6,101,936 

Renewal  fund 35,841,065 

Capital 51,198,326 

Total  for  six  years $93,201,326 

Average  per  year 15,533,550 


DIVIDENDS 

As  a  dividend  payer,  the  St.  Paul  has  had  a  record  up  to  the  present  time  that  is  surpassed  by 
no  other  Western  railway.  With  the  single  exception  of  the  year  1875,  dividends  have  been  paid 
continuously  for  over  forty  years  upon  the  preferred  stock  of  the  company.  A  complete  record  of 
dividends  paid  from  1892  to  1912  is  as  follows: 

Year  Rate 

Preferred  Common 

1892  . 7%  2% 

1893-4 7  4 

1895 7  2 

1896 7  4 

1897-1900 7  5 

1901 7  6 

1902-11 7  7 

1912 7  6 

Compiled  from  the  reports  of  the  company  for  the  years  1907  to  1911,  the  following  surpluses 
have  been  shown  over  and  above  all  fixed  charges  and  dividends: 

Year  Amount 

1907 $5,571,295 

1908 3,269,242 

1909 3,796,586 

1910 2,450,331 

1911 126,861 

*  The  equipment  fund  was  discontinued  in  1910,  and  amounts  previously  charged  to  it  were  charged  to  capital, 
t  The  renewal  fund  was  closed  in  1911. 


[  207  ] 


During  1912  both  common  and  preferred  dividends  were  declared  from  Profit  and  Loss.  The 
Profit  and  Loss  Account  of  the  company  stood  on  its  balance  sheet,  June  30,  1912,  at  $42,931,525, 
equivalent  to  18.5%  of  its  total  outstanding  capital  stock. 

STATISTICS 

Following  are  given  capitalization,  earnings,  and  traffic  statistics  of  the  Chicago,  Milwaukee  & 
St.  Paul  Railway,  based  on  the  average  miles  operated,  for  the  year  1900  and  the  years  1905  to 
1912  inclusive: 


[  208  ] 


CHICAGO,  MILWAUKEE    &   ST.  PAUL   RAILWAY 


Fiscal 

Preferred           Common 

Funded 

Gross 

Owned  by 

Net 

.\verage 

Extra  main 

year 

stock 

stock 

debt 

capital 

company 

capital 
34,413 

miles 
6,347 

track 

1900 

$6,410 

$7,428 

$20,662 

$34,500 

$37               i 

293 

1905 

7,141 

8,422 

17,686 

33,249 

793 

32,456 

6,908 

455 

1906 

7,133 

8.358 

17.505 

32,997 

668 

32,329 

0,961 

458 

1907 

7,005 

11,799 

17,846 

36,710 

654 

36,056 

7,050 

503 

1908 

6,664 

11,118 

16,759 

34,541 

2,669 

31,872 

7,499 

528 

1909 

15,478 

15,488 

19,115 

50,081 

14,040 

36,041 

7,512 

547 

1910 

15,478 

15,488 

25,584 

56,550 

19 

562 

36,988 

7,512 

569 

1911 

15,478 

15,488 

30,960 

61,926 

17 

686 

44,240 

7,512 

060 

1912 

15,480 

15,490 

35,729 

66,699 

17, 

518 

49,181 

7,511 

661 

Fiscal 

Gross 

Maintenance       Transportation 

Net 

Other 

Total  net 

FLxed 

Surplus 

Dividends 

year 

operating 

and  general 

operating 

income 

income 

charges 

available 

Way 
$1,190 

Equipment 

$528 

expense 
$2,132 

revenue 

$7 

for  dividends 

1900 

$6,599 

$2,749 

$2,756 

$1,056 

$1,700 

$774 

1905 

7,221 

773 

750 

2,825 

2,873 

33 

2,906 

1,099 

1,807 

1,086 

1906 

7,962 

855 

804 

3,008 

3,295 

37 

3,332 

1,098 

2,234 

1,084 

1907 

8,589 

827 

1,218 

3,546 

2,998 

152 

3,150 

1,167 

1,983 

1,204 

1908 

7,592 

886 

939 

3,131 

2,636 

229 

2,865 

1,188 

1,677 

1,240 

1909 

7,974 

970 

968 

3,218 

2,818 

361 

3,179 

1,434 

1,745 

1,240 

1910 

8,632 

1,128 

1,028 

3,806 

2,670 

1,286 

3,956 

1,469 

2,487 

2,160 

1911 

8,650 

1,047 

1,177 

4,040 

2,386 

1,607 

3,993 

1,815 

2,178 

2,160 

1912 

8,404 

1,173 

1,289 

3,893 

2,049 

1,013 

3,062 

1,739 

1,323 

2,006 

Fiscal 

Other       Surplus 

Operating 

Total  main- 

Conducting 

Fixed 

Gross 

Net 

Per  cent  earned  on 

year 

charges 

expenses 

tenance 

transporta- 

charges 

earnings 

income 

capital  stock 

to  in- 

to gross 

to  gross 

ion  to  gross 

to  gross 

to  gross 

to  net 

come 
$476 

$430 

earnings 

earnings 

earnings 

earnings 

capital 
19.0% 

capital 
8.0% 

Preferred 

Common 

1900 

58.35% 

26.0% 

32.3%, 

16.0% 

26.5% 

17.2% 

1905 

89 

632 

60.22 

21.1 

39.1 

15.0 

21.8 

9.0 

25.3 

15.6 

1906 

319 

831 

58.62 

20.9 

37.7 

13.8 

24.1 

10.3 

31.3 

20.7 

1907 

66 

713 

65.09 

23.8 

41.3 

13.6 

23.5 

8.7 

28.1 

12.6 

1908 

437 

65.27 

24.1 

41.2 

15.6 

21.9 

9.0 

25.2 

10.9 

1909 

505 

64.66 

24.3 

40.3 

17.9 

15.9 

8.8 

11.1 

8.1 

1910 

327 

69.05 

24.9 

44.1 

17.0 

15.2 

10.7 

16.06 

9.1 

1911 

18 

72.40 

25.7 

40.7 

21.0 

13.9 

9.0 

14.00 

7.1 

1912 

683* 

75.04 

29.3 

40.3 

20.7 

12.6 

6.2 

8.54 

1.5 

Fiscal 

Train 

Maintenance        Conducting     Train 

Rate  per  mile 

Freight 

Train 

Freight 

Passenger, 

year 

mile 

per  revenue          transporta-      mile 

density 

load 

to  all 

freight 

earnings 

train  mile               tion  per     earning 

Per 

Per  ton 

tons 

traffic 

and 

(gross) 

Te\ 

enue        (net) 

passenger 

company 

$1.65         $ 

S'ay      Equipment    train  mile 

205 

cars 

1900 

132 

$.297           $ 

639       $.582 

$.0235 

$.0093 

528,983 

74% 

37,481 

1905 

1.79 

196 

.191 

743          .660 

.0224 

.0088 

590,823 

265 

72 

43,003 

1906 

1.93 

207 

.195 

840          .688 

.0223 

.0086 

669,991 

282 

72 

41,154 

1907 

1.97 

189 

.279 

813          .689 

.0220 

.0086 

731,299 

290 

73 

45,937 

1908 

1.89 

220 

.233 

777          .660 

.0192 

.0081 

664,153 

274 

71 

47,757 

1909 

1.94 

235 

.235 

780          .090 

.0189 

.0084 

672,460 

274 

71 

47,585 

1910 

1.97 

260 

.237 

876          .597 

.0188 

.00843 

709,119 

276 

69 

47,286 

1911 

1.98 

241 

.269 

929          .541 

.0186 

.00841 

708,671 

275 

69 

46,992 

1912 

1.97 

275 

.303 

917          .475 

.0203 
*  Deficit. 

[209] 

.00838 

679,782 

288 

68 

49,948 

BOND  DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Chicago,  Milwaukee  & 

St.  Paul  Railway  System,  together  with  the  bases  upon  which  they 

have  sold  during  the  decade  ending  December  31,  1912: 


CHICAGO,  MILWAUKEE    &   ST.  PAUL   RAILWAY 

General  Mortgage  Gold  3VL'S  and  4s 

Dated  May  1,  1889  Maturing  May  1,  1989 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  4''2  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $150,000,000  Outstanding  (4s)  $48,841,000 

(3^s)       8,950,000 
Per  mile  ....  9,150 

Provisions  of      Of  the   total   amount  authorized,  there  are  $57,791,000  outstanding   at  present  as   above, 
issue:  $39,223,000  in  the  treasury  of  the  company  at  jn-csent  unsold,  and  $52,986,000  reserved  to 

retire  prior  liens. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  6,314.78  miles  of  road,  bridges,  terminals, 

realty,  equipment  and  future  acquisitions  on  the  above.  They  are  secured  by  a  first  mortgage 
on  3,753.07  miles,  a  second  mortgage  on  2,611.71  miles,  and  on  the  terminal  property  in  Mil- 
waukee subject  to  the  Chicago,  Milwaukee  &  St.  Paul  Terminal  First  5s  of  1914. 

Trustee:  United  States  Trust  Company,  New  York. 


The  General  Mortgage  4s  sold  in  1900  on  a  3.47  to  3.65  basis 


1901 

3.47 

3.62 

1902 

3.39 

3.60 

1903 

3.55 

3.875 

1904 

3.55 

3.78 

1905 

3.47 

3.60 

1906 

3.57 

3.78 

1907 

3.72 

4.07 

1908 

3.84 

4.00 

1909 

3.82 

3.95 

1910 

3.98 

4.07 

1911 

4.02 

4.07 

1912 

4.05 

4.15 

The  General  Mortgage  33^s  sold  in  1902  on 

a  3.33  basis 

1903 

3.57 

1904 

3.55  to  3.60  basis 

1905 

3.54 

3.625 

1906 

3.62 

3.84 

1907 

3.80 

4.30 

1908 

3.78 

4.05 

1909 

3.78 

4.00 

1910 

3.95 

4.12 

1911 

4.00 

4.10 

1912 

4.05 

4.20 

These  bonds  are  con.sidered  a  legal  investment  for  savings  banks  in  New  England. 


[  212  ] 


CHICAGO,  MILWAUKEE    &    ST.  PAUL   RAILWAY 
Debenture  Gold  4s 

Dated  July  1.  19()!>  Maturing  July  1,  1934 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  42  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 
Coupon  and  registered  bonds  interchangeable. 

Authorized  $50,000,000  Outstanding  $28,050,000 

Provisions  of      Of  the  total  amount  authorized  there  are  at  present  outstanding,  as  above,  $28,050,000,  the 
issue:  balance,  $21,950,000  being  reserved  for  construction  of  branches  and  feeders  for  the  Pacific 

extension  to  Puget  Sound. 

Security :  The  above  bonds  are  not  secured  by  a  mortgage,  but  they  are  direct  obligations  of  the  company 

as  evidenced  by  its  indenture,  which  provides  that  no  new  mortgage  shall  be  placed  on  the 
railroad  owned  by  it  July  1,  1909,  without  equally  securing  these  bonds. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

These  bonds  sold  in  1909  on  a  4.35  to  4.40  l)asis 

1910  4.42       4.62 

1911  4.45       4.05 

1912  4.55       4.75 

These  bonds  are  considered  legal  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


CHICAGO,  MILWAUKEE    &    ST.  PAUL   RAILWAY 
Chicago  &  Pacific  Western  Division,  First  Gold  5s 

Dated  Jatuiary  1,  1881  Maturing  January  1,  1921 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  42  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  (clo.sed  mortgage)  Outstanding  $25,340,000 

Per  mile  .    .  22,605 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  main  line  from  Marion  to  Council 

Bluffs,  la.,  261.06  miles;  from  Scotland  to  Al)erdeen.  S.  D.,  176.32  miles;  from  Manila,  la., 
to  Scotland  Junction,  178.12  miles;  from  Ottumwa  Junction  to  Coburg,  Mo.,  202.54  miles, 
and  branches;  the  above  totalling  1,120.9  miles.     The   bonds  are  further  secured  by  a  first 
mortgage  on  the  equipment  and  future  acquisitions  on  the  above. 
[  213  ] 


Equity:  The  above  bonds  are  prior  in  lien  to  tlie  General  Mortgage  4s  and  Sj^^s  of  1989,  a  sufficient 

number  of  which  has  been  reserved  to  retire  this  issue.    Under  the  terms  of  the  above  General 
Mortgage  no  further  bonds  may  be  issued. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 


These  bonds  sold  in  1900  on 

a  3.50  to  3.75  basis 

1901 

3.47 

3.80 

1902 

3.72 

4.10 

1903 

3.65 

3.70 

1904 

3.55 

3.80 

1905 

3.50 

3.75 

1906 

3.20 

3.62 

1907 

3.875 

4.50 

1908 

3.82 

4.17 

1909 

3.90 

4.15 

1910 

4.00 

4.375 

1911 

4.08 

4.25 

1912 

4.10 

4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


CHICAGO,  MILWAUKEE    &   ST.  PAUL   RAILWAY 

Dubuque  Division  First  Currency  6s 

Dated  July  1,  1880  Maturing  July  1,  1920 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  42  Broadway,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $6,500,000  plus  $15,000  per  mile 


Provisions  of 
issue: 


Security : 


Outstanding  $4,784,000 
Per  mile  .    .  13,550 


The  amount  originally  authorized,  as  above,  was  limited  by  the  terms  of  the  General  Mort- 
gage 4s  and  33^^s  of  1989  to  $5,565,000.  Of  this  amount,  $4,784,000  are  outstanding  in  the  hands 
of  the  public,  and  the  balance,  $781,000,  has  been  retired  by  the  sinking  fund. 

The  abo\'e  bonds  are  secured  by  a  first  mortgage  on  the  line  from  Clinton,  la.,  to  River  Junc- 
tion, Minn.,  178.01  miles,  and  important  branches,  the  above  totalhng  352.84  miles.  The 
bonds  are  further  secured  by  a  first  mortgage  on  the  equipment  and  future  acquisitions  of  the 
above. 


Equity: 


The  above  bonds  arc  prior  in  lien  to  the  General  Mortgage  4s  and  3j^s  of  1989,  a  sufficient 
number  of  which  has  been  reserved  to  retire  this  issue. 


Sinking  fund:  An  annual  amount,  equal  to  1%  of  the  total  bonds  issued,  is  to  be  applied  to  the  purchase  of 
these  bonds  at  not  exceeding  103.  Bonds  so  purchased  are  to  be  cancelled,  and  if  not  so  pur- 
chasable, the  money  is  to  be  invested  in  other  first  mortgage  6%  bonds  of  the  company.  The 
sinking  fund  went  into  effect  July  1,  1885. 

[  214  ] 


These  bonds  sold  in  1900  on 


1900  on 

a  8.025  to  3.84  basi 

1901 

3.67 

1903 

3.80 

4.10 

1904 

3.85 

3.90 

1905 

3.67 

1906 

3.72 

3.95 

1908 

4.27 

1909 

3.92 

1910 

4.25 

4.375 

1911 

4.05 

4.20 

1912 

4.00 

4.35 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


CHICAGO,  MILWAUKEE    &    ST.  PAUL   RAILWAY 
Wisconsin  &  Minnesota  Division  First  Gold  5s 

Dated  July  1,  1881  Maturing  July  1,  1921 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  42  Broadway,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  (closed  mortgage) 


Outstanding  $4,755,000 
Per  mile  .   .  22,115 


Security : 


Equity: 


Trustee: 


The  above  bonds  are  secured  by  a  first  mortgage  on  215.15  miles  of  road  and  future  acquisitions. 
The  hues  included  in  this  mortgage  are  those  from  Wabasha  to  Zumbrota,  Minn.,  and  from 
Wabasha  to  Chippewa  Falls,  Wis.,  also  the  important  Hne  from  St.  Paul  to  Minneapohs. 

The  above  bonds  are  prior  in  hen  to  the  General  4s  and  33^s  of  1989,  a  sufficient  number  of 
which  have  been  reser\'ed  to  retire  this  issue.  Under  the  terms  of  the  General  4s  and  33/^s  of 
1989  no  further  bonds  may  be  issued. 

Farmers'  Loan  &  Trust  Company,  New  York. 

These  bonds  sold  in  1900  on  a  3.58  to  3.82  basis 


1901 

3.60 

3.82 

1902 

3.47 

3.80 

1903 

3.70 

4.05 

1904 

3.68 

3.875 

1905 

3.62 

3.72 

1906 

3.67 

3.95 

1907 

4.00 

4.60 

1908 

3.90 

4.20 

1909 

3.95 

4.15 

1910 

4.10 

4.37 

1911 

4.12 

4.20 

1912 

4.15 

4.30 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 

[  ^215  ] 


CHICAGO,  MILWAUKEE    &   ST.  PAUL   RAILWAY 
Chicago  &  Missouri  River  Division  First  Currency  5s 

Dated  July  1,  1886  Maturing  July  1,  1026 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  •i'J  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  i^rincipal. 

Authorized  (closed  mortgage)  Outstanding  $3,083,000 

Per  mile  .    .  41,105 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  lines  in  South  Dakota, 

totalling  75.02  miles. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  General  4s  and  S^/^s  of  1989,  a  sufficient  number  of 

which  have  been  reserved  to  retire  this  issue.    Under  the  terms  of  the  General  4s  and  33/^s  of 
1989,  no  further  bonds  may  be  issued. 

Trustee:  Farmers'  Loan  &  Trust  Companj',  New  York. 

These  bonds  sold  in  1900  on  a  3.57  to  3.78  basis 


1901 

3.60 

3.87 

1902 

3.50 

3.80 

1903 

3.77 

4.05 

1904 

3.67 

3.95 

1905 

3.62 

3.73 

1906 

3.70 

3.95 

1907 

4.00 

4.30 

1908 

4.05 

4.23 

1909 

3.95 

4.15 

1910 

4.11 

4.38 

1911 

4.20 

1912 

4.15 

4.40 

These  bonds  are  considered  a  legal  in\'estment  for  savings  banks  in  New  England. 

CHICAGO,  MILWAUKEE    &    ST.  PAUL   RAILWAY 
La  Crosse  &  Davenport  Division  First  Currency  5s 

Dated  July  1,  1879  Maturing  July  1,  1919 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  42  Hroadway,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $3,00(),()()()  (closed  mortgage)  Outstanding  $2,500,000 

Per  mile  .    .  13,250 

Security:  The  above  i)onds  arc  secured  by  a  first  mortgage  on  tlie  company's  line  from  I)aveni)ort  to 

Jackson  Junction,  la.,  and  branches,  totalling  188.62  miles.     They  are  further  secured  by  a 
first  mortgage  on  the  e(iui|)ment  of  the  line  and  future  accjuisitions. 
[  216  ] 


Equity:  The  above  bonds  are  prior  in  lien  to  the  General  4.s  and  3} 2''  of  198!),  a  sufficient  number  of 

which  have  been  reserved  to  retire  this  issue.    Under  the  terms  of  the  General  4s  and  3}  2s  of 
1989  no  further  bonds  may  be  issued. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

These  bonds  sold  in  1900  on  a  3.60  to  3.70  basis 


1901 

3.57 

3.67 

1902 

3.50 

3.72 

1903 

3.75 

3.92 

1904 

3.82 

3.90 

1905 

3.60 

3.75 

1906 

3.67 

3.92 

1907 

4.12 

4.35 

1908 

3.92 

4.22 

1909 

4.15 

1910 

4.20 

4.40 

1911 

4.25 

4.35 

1912 

4.20 

4.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


CHICAGO,  MILWAUKEE    &    ST.  PAUL   RAILWAY 
Wisconsin  Valley  Division  First  Currency  6s 

Dated  July  1,  1880  Due  July  1,  1920 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  42  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $1,700,000  plus  $15,000  per  mile  Outstanding  $1,853,000 

Per  mile  .    .  11 ,475 

Provisions  of      The  amount  originally  authorized,  as  above,  was  limited  by  the  terms  of  the  General  Mort- 
issue:  gage  4s  and  Sj^s  of  1989  to  $2,466,000,  of  which  $1,853,000  are  outstanding  in  the  hands  of 

the  public,  and  the  balance,  $613,000,  has  been  retired  by  the  sinking  fund. 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Division's  fine  from  Tomali  to  Minocqua, 

Wis.,  161.49  miles.    They  are  further  secured  by  a  first  mortgage  on  the  equipment  of  the 
line  and  all  future  acquisitions. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  General  4s  and  3^28  of  1989,  a  sufficient  number  of 

which  have  been  reserved  to  retire  this  issue. 

Trustee:  New  England  Trust  Company,  Boston. 

Sinking  fund:  The  annual  amount  equal  to  1%  of  the  total  issue  of  these  bonds  is  to  be  applied  to  their  pur- 
chase at  not  exceeding  103.  Bonds  so  purchased  are  to  be  cancelled,  but  if  not  so  purchasable 
the  amount  is  to  be  invested  in  first  mortgage  6%  bonds  of  the  company.  The  sinking  fund  be- 
came effective  July  1,  1885. 

[  217  ] 


The  bonds  sold  in  1900  on  a  3.78  to  3.90  basis 


1901 

3.87 

1902 

3.78 

1903 

3.80   4.10 

1904 

3.92   4.00 

1905 

3.72 

1906 

3.82   3.90 

1909 

3.95  (bid) 

1910 

4.25 

1911 

4.12  to  4.32 

1912 

4.125  4.55 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England, 


CHICAGO,  MILWAUKEE   &   ST.  PAUL   RAILWAY 
Chicago  &  Lake  Superior  Division  First  Gold  5s 

Dated  July  21,  1881  Maturing  July  1,  1921 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  42  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $20,000  per  mile  Outstanding  $1,360,000 

Per  mile  .    .  7,705 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  lines  of  the  division  in  Wisconsin, 

totalling  171.79  miles.     They  are  further  secured  by  a  first  mortgage  on  the  entire  equipment 
of  those  lines  and  all  future  acquisitions. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  General  4s  and  33^s  of  1989,  a  sufficient  number  of 

which  have  been  reserved  to  retire  this  issue.     Under  the  terms  of  the  General  4s  and  33/^s  of 
1989  no  further  bonds  may  be  issued. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

These  bonds  sold  in  1900  on  a  3.60  to  3.80  basis 


1901 

3.52 

3.82 

1902 

3.50 

1903 

3.72 

1905 

3.62 

3.72 

1907 

4.20 

1909 

4.00 

4.10 

1910 

4.10 

4.15 

1911 

4.12 

4.25 

1912 

3.90 

4.30 

These  bonds  arc  considered  a  legal  investment  for  savings  lianks  in  New  England. 


[  218  ] 


CHICAGO,  MILWAUKEE    &   ST.  PAUL   RAILWAY 
Terminal  First  Gold  5s 

Dated  July  1,  1884  Maturing  July  1    1914 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  42  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $5,000,000  Outstanding  $4,748,000 

Provisions  of      The  amount  originally  authorized,  as  above,  was  limited  by  the  terms  of  the  General  4s  and 
issue:  Sj^s  of  1989  to  $4,773,000,  of  which  $4,748,000  are  outstanding  in  the  hands  of  the  public, 

and  the  balance,  $25,000,  has  been  retired  by  and  held  under  the  General  4s  and  S^os- 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  railroad  terminal  property  in  Chicago 

and  Milwaukee  and  all  future  acquisitions.     They  are  prior  in  lien  to  the  General  4s  and  S^/^s 
of  1989,  a  sufficient  number  of  which  have  been  reserved  to  retire  this  issue. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

These  bonds  sold  in  1900  on  a  3.50  to  3.87  basis 


1901 

3.50 

3.82 

1902 

3.45 

3.75 

1903 

3.75 

3.85 

1904 

3.65 

3.90 

1905 

3.47 

3.70 

1906 

3.75 

4.12 

1907 

3.95 

5.00 

1908 

3.70 

4.37 

1909 

3.85 

4.10 

1910 

4.00 

4.35 

1911 

4.00 

4.30 

•,  1912 

4.80  1 

[bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 

FARGO    &    SOUTHERN    RAILWAY 
First  Mortgage  Gold  6s 

Dated  October  10,  1883  Maturing  January  1,  1924 

Interest  payable  January  1  and  July  1  at  the  office  of  the  Chicago,  Milwaukee  &  St.  Paul  Railway, 

42  Broadway,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $1,250,000  (closed  mortgage)  Outstanding  $1,250,000 

Per  mile  .    .  10,685 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Fargo,  N.  D., 

to  Ortonville,  Minn.,  116.97  miles.     They  are  further  secured  by  a  first  mortgage  on  all  the 
equipment  of  the  line  and  future  acquisitions. 
[  219  ] 


Equity:  The  above  bonds  are  prior  in  lien  to  the  General  4.s  and  3I2S  of  1989,  a  sufficient  number  of 

which  have  been  reserved  to  retire  this  issue.     Under  the  terms  of  the  General  4s  and  3}^s  no 
further  bonds  may  be  issued. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Fargo  &  Southern  Railway  Company  was  incorporated  in  the  territory  (now  the  State) 
of  Dakota,  and  the  property  of  tlie  railroad  was  purchased  by  the  Chicago,  Milwaukee  &  St.  Paul 
Railway  Company  in  1885.  The  latter  assumed  the  mortgage  indebtedness  of  the  Fargo  &  Southern 
Railway  Company  and  the  above  bonds  are  so  endorsable  upon  presentation. 

These  bonds  sold  in  1909  on  a  4.10  to  4.30  basis 

1910  4.37 

1911  4.25 
December,  1912  4.50  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  Maine. 


DAKOTA    &    GREAT   SOUTHERN    RAILWAY 
First  Mortgage  Gold  5s 

Dated  January  1,  1886  Maturing  January  1,  1916 

Interest  payable  January  1  and  July  1  at  the  office  of  the  Chicago,  Milwaukee  &  St.  Paul  Railway, 

42  Broadway,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  (closed  mortgage)  Outstanding  $2,856,000 

Per  mile  .    .  17,962 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  lines  in  North  and  South 

Dakota,  totalling  158.93  miles,  and  all  the  equipment  on  them  and  future  acquisitions. 

These  bonds  have  been  ASSUMED  by  the  Chicago,  Milwaukee  &  St.  Paul  Railway  Company. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  General  4s  and  33^s  of  1989,  a  sufficient  number  of 

which  have  been  reserved  to  retire  this  issue.     Under  the  terms  of  the  General  4s  and  33^s  no 
further  bond.s  may  be  issued. 

Trustee:  Farmers'  Loan  &  Trust  C^ompany,  New  York. 

The  Dakota  &  Great  Southern  Railway  Company  was  incorporated  in  the  territory  (now  the 
State)  of  Dakota,  and  the  property  of  the  railway  was  purchased  by  the  Chicago,  Milwaukee  &  St. 
Paul  Railway  Comjjany  in  1886,  the  latter  assuming  the  mortgage  indebtedness  of  the  company. 

[  220  ] 


These  bonds  sold  in  1900  on  a  3.57  to  4.10  basis. 


1901 

3.57 

3.95 

1902 

3.55 

3.85 

1903 

3.87 

4.10 

1904 

3.70 

3.98 

1905 

3.62 

3.67 

1906 

3.75 

4.10 

1907 

4.10 

4.20 

1908 

3.85 

4.37 

1909 

4.05 

4.22 

1910 

4.35 

4.50 

1911 

4.15 

4.30 

1912 

4.20 

4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  Elaine. 


MILWAUKEE    &   NORTHERN   RAILROAD 
First  Mortgage  4il'S 

Dated  June  10,  1880  Maturing  June  1,  1913 

Extended  June  1,  1910,  and  reduced  from  6s 

Interest  paj'able  June  1  and  December  1  at  the  office  of  the  Chicago,  Milwaukee  &  St.  Paul 
Railway,  42  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  |)rincipal. 

Authorized  $2,155,000  Outstanding  $2,155,000 

Per  mile  .    .  16,835 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  companj''s  line  from  North  Milwaukee 

to  Green  Bay,  Wis.,  and  branches,  totalling  128.25  miles.     They  are  further  secured  by  a  first 
mortgage  on  all  the  equipment  of  the  line  and  future  acqiusitions. 

These  bonds  have  been  ASSUMED  by  the  Chicago,  Milwaukee  &  St.  Paul  Railway  Company. 

Equity:  The  above  bonds  are  |)rior  in  lien  to  $4,003,000  Milwaukee  &  Northern  Consolidated  6s  of  1913. 

The  Milwaukee  &  Northern  Railroad  wa.s  incorporated  under  the  laws  of  Wisconsin.  The  prop- 
erty of  the  railroad  was  deeded  to  the  Chicago,  INIilwaukee  &  St.  Paul  Railway  Company  in  1893. 
The  latter  assumed  at  that  time  all  its  funded  indebtedness. 

These  bonds  sold  in  1911  on  a  4.10  to  4.37  basis 
July,  1912  4.25 

These  bonds  are  considered  a  Ifgal  investment  for  savings  banks  in  New  England. 


[  221  ] 


MILWAUKEE    &   NORTHERN   RAILROAD 
Consolidated  Currency  6s 

Dated  Feliruary  11,  1884  Maturing  June  1,  1913 

Interest  payable  June  1  and  December  1  at  42  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $8,000,000  Outstanding  $4,003,000 

Per  mile  .    .  9,508 

Provisions  of      Of  the  total  amount  authorized,  $4,003,000  are  outstanding  in  the  hands  of  the  public  and 
issue:  $1,089,000  are  held  in  the  treasury  of  the  company.     They  are  subject  to  the  Milwaukee  & 

Northern  First  4)^s  of  1913. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  ou  420.71  miles  of  road,  and  all  the  equip- 

ment on  the  lines  covered,  and  future  acquisitions.  They  are  secured  by  a  first  mortgage  on 
292.46  miles,  all  in  Wisconsin,  and  by  a  second  mortgage  (subject  to  the  above-mentioned  4^8 
of  1913)  on  128.25  miles. 

These  bonds  have  been  ASSUMED  by  the  Chicago,  Milwaukee  &  St.  Paul  Railway  Company. 

These  bonds  sold  in  1900  on  a  3.85  to  4.00  basis 


1901 

3.70 

4.00 

1902 

3.45 

3.70 

1903 

3.70 

4.05 

1904 

3.60 

4.10 

1905 

3.65 

3.75 

1906 

3.55 

1907 

3.85 

5.05 

1908 

3.75 

4.30 

1909 

3.90 

4.50 

1910 

4.00 

4.70 

1911 

4.05 

5.05 

',  1912 

4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Connecticut  and 
Rhode  Island. 


CHICAGO,  MILWAUKEE    &    ST.   PAUL   RAILWAY 
European  Loan  Debenture  4s 

Dated  June  1,  1910  Maturing  June  1,  1925 

Interest  payable  June  1  and  December  1  at  Paris  and  London,  in  pounds  sterling  and  francs. 

Coupon  bonds  of  500  and  2,500  francs. 
Authorized  250,000,000  francs  Outstanding  250,000,000  francs 

Security :  The  above  bonds  are  not  secured  by  mortgage,  but  are  a  direct  obligation  of  the  company  as 

evidenced  by  its  indenture,  which  provides  that  no  future  mortgage  shall  be  executed  upon 
[  oao  ] 


Trustee : 


any  part  of  its  system  without  giving  existing  bonds  the  benefit  thereof.  The  company  further 
covenants  not  to  part  with  any  present  or  future  holdings  of  the  shares  of  the  Chicago,  Mil- 
waukee &  Puget  Soimd  Railway  Company  so  long  as  any  of  these  debentures  shall  remain 
outstanding. 

United  States  Mortgage  &  Trust  Company,  New  York. 


These  bonds  were  issued  for  the  purpose  of  obtaining  funds  for  the  extension  of  the  company's 
railway,  for  second  track  purposes,  for  additional  equipment,  and  for  such  other  additions  and  bet- 
terments as  should  be  ordered  by  the  board  of  directors. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


CHICAGO,  MILWAUKEE    &   PUGET    SOUND    RAILWAY 

First  Mortgage  Gold  4s 

Dated  January  1,  1909  Maturing  January  1,  1949 

Interest  j^ayable  January  1  and  July  1  at  Company's  office,  i'i  Broadway,  New  York. 

Coupon  bonds  of  $100,  $500  and  $1,000,  registerable  as  to  principal. 

Coupon  bonds  of  $500  and  $1,000  are  fully  registerable. 

Registered  bonds  of  $500,  $1,000  und  $5,000  and  multiples  of  $500. 

Coupon  and  registered  bond.s  interchangeable. 

Authorized  $200,000,000  Outstanding  $155,691,410 


Provisions  of      Of  the  amount  outstanding,  $129,596,410  are  held  in  the  treasury  of  the  Chicago,  Milwaukee 
issue:  &  St.  Paul  Railway,  and  $26,095,000  are  in  the  hands  of  the  i)ublic.     The  balance,  $44,308,590, 

is  reserved  for  expenditures  made  after  January  1,  1911,  for  construction  or  acquisition  of 
new  lines,  terminals,  equipment,  improvements,  etc.,  under  restrictions  of  the  mortgage. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  entire  railroad  line,  terminals,  equip- 

ment, operating  contracts,  etc..  of  the  company  including:  (a)  a  first  mortgage  on  2,012  miles 
of  road  comprising  the  main  line  from  Mobridge,  S.  D.,  to  Maple  Valley,  Wash.,  and 
branches  constructed  and  in  operation;  (b)  a  first  mortgage  on  the  company's  undivided  half 
interest  in  the  line  from  Black  River  Junction  to  Tacoma,  Wash.,  71.23  miles,  owned  jointly 
with  the  Oregon- Washington  Railroad  &  Navigation  Company;  (c)  also  upon  equipment  cost- 
ing about  $22,555,000,  terminals  in  Seattle,  costing  over  $2,000,000,  terminals  in  Tacoma 
costing  over  $2,000,000,  and  terminals  in  Spokane  costing  over  $3,000,000;  (d)  also  upon 
operating  contracts  expiring  in  2005  on  the  line  from  Maple  Valley  to  Seattle,  Wash,  (about 
20.5  miles). 

The  above  bonds  are  GUARANTEED  as  to  PRINCIPAL  ami  INTEREST  by  the  Clii- 
cago,  Milwaukee  &  St.  Paul  Railway  Company  by  endorsement. 


Trustees : 


The  United  States  Trust  Company,  New  York,  and  Edward  W.  Sheldon,  E.scp 


These  bonds 


)ld  in  1911  on  a  4.27  to  4.35  basis 
1912  4.25       4.40 


These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshi 

[  223  ] 


and  Rhode  Island. 


CHICAGO,  MILWAUKEE    &   ST.  PAUL   RAILWAY 
Convertible  Gold  4y2S 


Dated  June  1,  1912 


Maturing  June  1,  1932 


Interest  payable  June  1  and  December  1,  at  New  York. 


Coupon  bonds  of  $100,  $500  and  $1,000,  registerable  as  to  principal. 

Registered  bonds  of  $500,  $1,000,  $5,000  and  $10,000. 

Coupon  and  registered  bonds  interchangeable. 


Authorized  $50,000,000 


Outstanding  $34,893,500 


Provisions  of      Of  the  total  amount  authorized,  $34,893,500  are  outstanding  as  above,  and   the   balance, 
issue:  $15,106,500,  have  been  reserved  for  corporate  purposes. 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Chicago,  Milwaukee  &  St.  Paul  Railway  Com- 

pany, but  are  not  secured  by  a  mortgage.  In  its  indenture  the  company  agrees  to  make  no 
new  mortgage  upon  its  railroads,  or  any  part  thereof,  while  these  bonds  are  outstanding, 
without  ratably  securing  the  same  by  such  a  mortgage. 

Convertibility:  These  bonds  are  convertible  at  par  into  common  stock  from  June  1,  1917,  to  June  1,  1922, 
inclusive. 

Redemption:      They  are  redeemable  as  a  whole  on  or  after  December  1,  1922,  upon  90  days'  notice,  at  105 
and  interest. 

Trustee:  United  States  Trust  Company,  New  York. 

These  bonds  were  offered  to  stockholders  of  record  Ajn-il  25,  1912,  at  par  to  the  extent  of 
15%  of  their  holdings,  the  right  to  subscribe  closing  on,  and  not  later  than,  May  31,  1912. 
They  sold  up  to  Jan.  1,  1913,  on  a  4.00  to  4.37  basis. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


[  224  ] 


CHICAGO,  ST.  PAUL,  MINNEAPOLIS  &  OMAHA  RAILWAY 

COMPANY 


CHICAGO,  ST.  PAUL,  MINNEAPOLIS  &  OMAHA  RAILWAY 
COMPANY 

HISTORY 

The  Chicago,  St.  Paul,  Minneapohs  &  Omaha  Railway  was  chartered  in  1880,  under  the  laws  of 
Wisconsin,  as  a  consolidation,  effective  June  1  of  that  year,  of  the  Chicago,  St.  Paul  &  ^Minneapolis 
Railway  and  the  North  Wisconsin  Railway  Companies.  During  its  thirty-odd  years  of  existence  it 
has  acquired  various  branches,  among  them  the  St.  Paul  &  Sioux  City  Railroad,  the  ^Menominee 
Railway,  the  Sault  Ste.  Marie  &  Southwestern  Railway,  the  Minnesota  &  Wisconsin  Railroad,  the 
Cliipi)ewa  Valley  &  Northwestern  Railway,  the  Superior  Short  Line  Railway  and  the  Eau  Claire, 
('hipj)ewa  Falls  &  Northeastern  Railway. 

Since  1907  several  extensions  have  been  built  and  are  now  under  operation.  The  first  was  opened 
for  traffic  October  25,  1907,  running  from  Newcastle  to  Wynot,  Nebraska,  a  distance  of  18  miles. 
On  January  1,  1909,  an  extension  of  the  line  from  Draper  to  Kennedy,  Wisconsin,  9  miles,  was  put  in 
operation,  and  on  October  3.  1910,  an  extension  from  Kennedy  to  Kaiser,  Wisconsin,  a  distance  of  .5 
miles,  was  completed  and  opened  for  traffic.  In  the  fall  of  1911  a  short  extension  from  Black  River 
Falls  to  a  connection  with  the  main  line  at  Vaudreuil,  Wisconsin,  was  completed. 

The  "Omaha,"  as  it  is  familiarly  known,  passed  under  the  control  of  the  Chicago  &  Northwestern 
Railway  Company  in  November,  1883,  and  has  since  then  been  operated  practically  as  a  ])art  of  the 
larger  road.  Of  its  $11, '•259,911  outstanding  preferred  stock,  $5,380,000  is  owned  i>y  the  Northwest- 
ern, which  also  owns  $9,5-10,000  of  the  $18,559,086  common  stock.  This  gives  the  latter  control  of 
149,200  shares  of  the  298,190  outstanding.  A  majority  of  its  directors  are  directors  of  the  North- 
western. 


PROPERTY 

Based  on  the  company's  report  for  the  fiscal  year  ending  June  30,  1912,  the  company  oj)erated 
1,744.39  miles  of  road,  of  which  1,674.80  miles  were  owned  in  fee  and  69.59  miles  were  those  of  leased 
lines.  The  average  miles  operated  for  the  fiscal  year  1912  were  1,745.10.  In  addition  to  this,  the 
company  owned  and  operated  119.85  miles  of  second  track  as  compared  with  85.29  miles  in  1911. 

Its  lines  run  southerly  from  Bayfield,  Wisconsin,  and  Duluth,  Minnesota,  on  Lake  Superior, 
through  St.  Paid  and  Minneapolis,  to  Sioux  City  and  Omaha,  Nebraska,  with  important  branches. 
It  traverses  the  States  of  Wisconsin,  Minnesota  and  Nebraska,  whose  population  in  1890  was 
4,047,620  as  compared  with  5,601,700  in  1910. 


[  227  ] 


CAPITALIZATION 

The  capital  account  of  the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Railway  Company  stood 
on  its  balance  sheet  of  June  30,  1912,  as  follows: 

Capital  stock 

Preferred $12,646,833 

Common 21,403,293 

Total  capital  stock $34,050,126 

Funded  debt 35,098,046 

Gross  capitalization      $69,148,172 

Securities  owned 380,595 

Net  capitalization $68,767,577 

Net  capital  per  mile  operated $39,350 

Average  miles  operated 1,745.10 

Net  income  to  net  capital 7.1% 

Fixed  charges  to  net  income 57.5% 

Margin  of  safety 42.5% 

In  the  above  table  are  included  $1,386,922  preferred  and  $2,844,207  common  stocks  held  in  the 
treasury  of  the  company,  also  $51,046  bonds. 

Prior  to  1912  there  had  been  no  material  increases  in  the  capitalization  of  the  company  since 
its  control  by  the  Northwestern,  in  fact,  no  large  financing  since  1880.  A  sale  of  bonds  by  the  Omaha 
was  recorded  in  April,  1911,  when  $1,500,000  5%  bonds  of  the  Superior  Short  Line,  which  had  been 
held  in  the  treasurj'  of  the  company,  were  sold. 

During  the  fiscal  year  of  1912  the  directors  were  authorized  to  issue  $15,000,000  5%  debentures. 
By  permission  of  the  Railroad  Commission  of  Wisconsin  $5,000,000  of  these  bonds  were  sold  in 
February,  1912,  causing  an  increase  in  the  total  funded  debt  per  mile  of  road  operated  of  $2,845. 
The  important  result  of  this  issue  has  been  the  double  tracking  of  the  line  from  Eau  Claire  to  Hudson, 
Wisconsin,  a  distance  of  GO  miles,  which  was  made  necessary  because  of  the  heavy  traffic  passing  over 
that  portion  of  the  road.  Of  the  total  issue,  $3,700,000  will  be  used  for  constructing  and  equipping 
the  double  trackage,  but  with  the  completion  of  the  work  a  material  increase  in  revenue  is  anticipated. 

On  June  30,  1912,  the  company's  funded  debt  per  mile  was  $20,113,  as  compared  with  $17,267 
in  1911.  The  total  net  capital  outstanding  per  mile  was  $39,350,  on  which  7.1%  net  was  earned. 
This  compares  with  $36,594  and  8.7%  respectively  in  1911. 

The  capital  showing  of  the  "Omaha"  is  very  nearly  as  good  as  that  of  the  Northwestern.  The 
latter's  net  capital  per  mile  was  $40,634,  but  its  net  income  on  this  was  7.6%  as  compared  with  the 
"Omaha's"  $39,350  net  capital  per  mile  and  net  income  of  7.1%.  In  1912  the  Chicago,  Milwaukee  & 
St.  Paul  reported  a  net  capitalization  of  $49,181  and  earned  6.2%  net  on  this  figure. 

In  all  three  cases  the  margin  of  safety  for  the  interest  on  the  securities  was  relatively  high,  the 
"Omaha's"  figure  of  practically  42.5%  comparing  with  47.5%  for  the  Northwestern  and  43.2%  for 
the  St.  Paul. 


[  228  ] 


CHARACTER   OF  TRAFFIC 

No  commodity  statistics  are  given  by  the  company  in  its  report,  but,  like  the  Northwestern,  it 
is  known  to  depend  largely  for  its  freight  trafSc  on  the  lumber  and  mine  products  of  the  north  and 
the  grain  fields  of  Nebraska.  About  two-thirds  of  the  business  of  the  road  is  freight  and  the  general 
stability  of  its  freight  trafBc  is  shown  by  the  following  table: 

Year  Freight  Train  Freight  Rate 

density  load  earnings  per  ton 

tons  per  mile 

1907 625,176  238  $9,423,097  $.0088 

1908 538,340  233  8,276,781  .0089 

1909 550,958  245  8,627,853  .0090 

1910 615,863  251  9,720,912  .0091 

1911 672,233  274  10,563,204  .0090 

1912 625,887  249  9,478,792  .0087 

It  will  be  seen  that,  with  the  exception  of  two  poor  years  in  1908  and  1909,  the  road's  tonnage 
held  up  very  satisfactorily.  During  the  fiscal  year  of  1912  the  company  reported  a  decline  of 
475,223  tons  of  revenue  freight  carried  as  compared  with  1911,  due  to  poor  crops  in  part  of  its  terri- 
tory. This,  together  with  a  decrease  in  the  average  rate  per  ton  per  mile,  brought  about  a  decrease 
in  freight  revenue  of  $1,084,412,  or  10%. 

It  is  interesting  to  compare  the  average  freight  density,  train  load  tons  and  rate  per  ton  of  the 
Omaha  for  the  six  years  ending  June  30,  1912,  with  the  corresponding  averages  of  the  Northwestern 
and  the  St.  Paul : 

Freight  Train  Rate 

density  load  per  ton 

tons 

Omaha 604,743  248  $.0089 

Northwestern 679,170  270  .0089 

St.  Paul 694,247  279  .0083 

The  passenger  business  of  the  Omaha  is  of  growing  importance.  During  the  fiscal  year  of  1912 
it  represented  nearly  30%  of  the  total  business  of  the  road.  With  the  growth  in  population  the 
passenger  density  has  shown  a  marked  increase,  save  in  1912,  while  earnings  in  the  face  of  a  general 
decrease  in  passenger  rates  have  shown  a  corresponding  gain  from  year  to  year,  as  will  be  seen  by 
the  following  table: 

Year  Passenger  Passenger  Rate  per 

density  earnings  passenger 

per  mile 

1907 97,086  $3,758,563  $.0227 

1908 108,079  3,690,483  .0198 

1909 118,329  3,990,944  .0195 

1910 129,075  4,309,072  .0192 

1911 133,758  4,475,419  .0192 

1912 126,636  4,551,593  .0206* 

*  During  the  fiscal  year  of  1912  the  passenger  rate  was  increased  to  three  cents  a  mile. 


229  ] 


EARNINGS 

Based  on  tlie  annual  reports  of  the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Railway,  gross  and 
net  earnings,  also  figured  on  a  i)er  mile  basis,  are  given  for  the  years  1907  to  1912  inclusive: 

\eaT  Average-  Gross  Per  .Xet  Per 

miles  earnings  mile  earnings  mile 

operated 

1907 1,705  $14,035,310  $8,'23'2  $5,056,296  $2,966 

1908 1,725  12,840,368  7,444  4,353,128  2,527 

1909 1,734  13.524,649  7,799  4,693,421  2,706 

1910 1,739  15,095,023  8,680  5,206,543  2,993 

1911 1,743  16,092,851  9,232  5,436,797  3,118 

1912 1,745  15,135,426  8,674  4,669,210  2,676 

The  general  business  depression  of  1908  and  1909  had  its  effect  on  the  earnings  of  this  system 
as  well  as  others,  and  the  splendid  recovery  shown  in  1910  and  1911  is  very  satisfactory.  Gross 
earnings  in  1911  were  25%  higher  than  the  low  figures  of  1908,  and  the  largest  ever  reported.  Net 
earnings  also  were  the  highest  ever  reported,  being  nearly  $400,000  greater  than  the  previous  high 
record  of  1907,  and  28%  higher  than  the  low  figures  of  1908.  Gross  earnings  in  1912  declined  over 
$950,000,  while  net  earnings  fell  $767,600,  as  compared  with  1911. 


MAINTENANCE 

Following  are  the  amounts  .spent  by  the  Omaha  for  maintenance  during  the  years  1907  to  1912 
inclusive: 

Year  Maintenance  Total  Total 

\\u.\- 

1907   $1,782,707 

1908  1,585,380 

1909  1,643,784 

1910  1,956,500 

1911  1,965,393 

1912  1,684,548 

In  spite  of  the  shar]i  decline  in  gross  earnings  during  1908  and  1909  the  company  did  not  ap- 
])arently  curtail  maintenance  charges  materially.  In  1910  and  1911  maintenance  appears  to  have 
been  liberal. 

The  following  table  is  appended  showing  the  average  traffic  densities  and  the  average  amounts 
spent  for  maintenance  per  mile  by  the  Omaha,  the  Northwestern,  and  the  St.  Paul,  for  six  years 
ending  Jime  30,  1915: 

Traffic  Total  Per  cent  of 

density  maintenance  total  to  gross 

per  mile  earnings 

Omaha 723,570  $1,993  23.9% 

Northwestern 804,077  2,321  25.3 

St.  Paid       785,417  2.108  25.3 

While  the  Omaha  reported  an  average  density  nearly  100,000  less  than  the  Northwestern,  it 
spent  on  an  average  but  $220  per  mile  less  for  maintenance  of  way  and  equipment.  With  a  traffic 
density  over  75,000  less  than  the  St.  Paul,  the  Omaha  .spent  over  $60  a  mile  more  than  the  former, 
a  very  favorable  showiiig. 

[  230  ] 


Equipment 

maintenance 

per  mile 

$1,594,220 

$3,386,927 

$1,980 

1,507,267 

3,092,647 

1,792 

1,577,831 

3,221,615 

1,858 

1,758,143 

3,714,643 

2,137 

1,863,983 

3,829,376 

2,197 

1,796,694 

3,481,242 

1,995 

ADDITIONS   AND   BETTERMENTS 


There  have  been  no  Ijetternients  charged  to  income  since  the  fiscal  year  of  1906,  when  $600,000 
was  set  aside  for  this  purpose.  All  improvements  made  since  then  have  been  charged  to  capital  as 
follows : 


Year 

Additioi 

slo 

ToUil 

Less  property 

Net 

Property 

Equipment 

additions 

and  equipment 
sold 

additions 

1907     .    .    . 

$1,062,0^28 

$124,627 

$1,186,655 

$13,128 

$1,173,527 

1908     .    .    . 

424,125 

535,155 

959.280 

156,613 

802,666 

1909     .    .    . 

255,225 

18,132 

273,357 

37,849 

235,508 

1910     .    .    . 

381,939 

591,730 

973,669 

384,542 

589,126 

1911     .    .    . 

822,544 

577,182 

1,399,726 

40,989 

1.358,736 

1912     .    .    . 

2,070,294 

365,365 

2,435,659 

81,061 

2,354,598 

$6,514,161 

DIVIDENDS 

The  Chicago,  St.  Paul,  ^Minneapolis  &  Omaha  Railway  Company  has  paid  the  following  dividends 
since  1897: 

Preferred  stock 

1897-1912 7% 

Common  stock 

1897-8 2% 

1899 33^ 

1900-1 5 

1902-4    6 

1905-12  7 

Since  1905  the  company  has  reported  the  following  surpluses  over  all  charges  and  dividends. 
These  amounts  have  been  carried  to  profit  and  loss. 

Year  Ainoimt  IVr  cent  earned  Year  Amount  Per  cent  earned 

on  common  stock  *  on  common  stock 

1905  .  .  .  $154,268  8.6  1909  ...  $175,330  6.9% 

1906  .  .  .  .331,279  10.4  1910  .    .  528,375  8.5 

1907  .  .  .  756,342  9.6  1911  .    .  729,475  9.4 

1908  .  .  .  18,144  6.2  1912  ....  2,307t  6.1 

It  will  be  noted  tiiat  in  every  year  u])  to  1912,  except  1908,  dividends  were  earned  by  substantial 
margins.  It  was  ])robably  on  the  strength  of  this  showing  that  the  company  felt  justified  in  main- 
taining its  dividend  rate  in  the  face  of  the  temporary  set  back  which  earnings  received  in  1912. 

On  June  30,  1912,  the  Profit  and  Loss  Account  of  the  company  stood  on  its  general  balance 
sheet  at  $4,626,822.    This  is  etiual  to  13.6';o  of  the  total  capital  stock. 


STATISTICS 


Following  are  given  capitalization,  earnings  and  traffic  statistics  of  the  Chicago,  St.  Paul,  Min- 
neapolis &  Omaha  Railway,  based  on  the  average  miles  operated,  for  the  year  1900  and  for  the  years 
1905  to  1912  inclusive: 


Common  stock  figure  used  incluiles  trca; 


pon  whicli  no 

[  231  ] 


ids  are  paid. 


CHICAGO,    ST.   PAUL,   MINNEAPOLIS    &   OMAHA   RAILWAY 


Fiscal 
year 

1900 
1905 
1900 
1907 
1908 
1909 
1910 
1911 
1912 


Preferred  Common  Funded  Rentals 

stock  stock  debt  @  5% 


Gross  Owned  by  Net 

capital  company  capital 


?8,190 
7,514 
7,470 
7,417 
7,331 
7,293 
7,272 
7,255 
7,247 


12,717 
12,643 
12,553 
12,407 
12,343 
12,307 
12,279 
12.208 


$16,730 
16,519 
16,466 
16,485 
16,454 
16,449 
17,265 
17,267 
20,113 


$1,424 
1,473 
1,458 
1,436 
1.796 


37,891 


36,844 
36,801 


$54 
127 


207 
218 


$40,152 
38,096 
37,949 
37,802 
37,894 
35,972 
36,732 
36,594 
39,350 


Average  Extra 

miles  main 

operated  track 


1,544 
1,683 

1,705 
1,725 
1,734 
1,739 
1,743 
1,745 


Fiscal 
year 


1900 
1905 
1906 
1907 
1908 
1909 
1910 
1911 
1912 


Gross 
operating 
revenue 


7,087 
7,645 
8,232 
7,444 
7,799 
8,680 
9,232 
8,674 


enance  Transportation  Net  Other 

and  general        operating         income 
Equipment       expense  revenue 


$1,228 

821 

960 

1,045 

919 

948 

1,126 

1,128 


$592 

685 

714 

935 

873 

910 

1,011 

1,069 

1,030 


$2,126 
2,711 
2,849 
3,286 
3,125 
3,235 
3,550 
3,917 
4,003 


82,752 
2,870 
3,122 
2,966 
2,527 
2,706 
2.993 
3,118 
2,676 


$2,752 
2,870 
3,122 
2,966 
2,659 
2,777 
3,075 
3,198 
2.814 


Fixed 

charges 


$1,198 
1,300 
1,340 
1,298 
1,436 
1,473 
1,572 
1,583 
1,619 


Surplus  avail- 
able for 
dividends 

$1,554 
1,570 
1,782 
1,668 
1,223 
1,304 
1,503 
1,615 
1,195 


Fiscal 
year 


1900 
1905 
1906 
1907 
1908 
1909 
1910 
1911 
1912 


Divi- 
dends 


$1,111 
1,239 
1,233 
1,224 
1,211 
1.204 
1.200 
1,197 
1,196 


Other  Surplus        Operating 

charges  expenses 

to  in-  to  gross 

come  earnings 


239 
355 


Total  Conducting        Fixed 

mainte-       transpor-  charges 

nance  to      tation  to  to  gross 

gross  gross  earnings 

earnings        earnings 


Gross 
earnings 
to  gross 
capital 


Net  Per  cent 

income  earned  on 

to  net  capital  stock  j 

capital 

Preferred  Common 


$324         $119  59.0%         27.1%         31.9%         17.9%         16.6%         6.8%         18.9%        7.6% 


444 
12 
100 
303 
418 


59.5 
59.1 
64.2 
66.1 
65.3 
65.5 
66.3 


21.3 
21.9 
24.2 
24.1 
23.8 
24.6 
23.9 


38.2 
37.2 
40.0 
42.0 
41.5 
40.9 
42.4 
46.1 


18.3 
17.5 
15.8 
19.3 
18.8 
18.1 
17.1 
18.6 


18.5 
20.1 
21.7 
19.6 
21.6 
23.6 
25.1 
21.9 


20.9 
23.8 
22.4 
16.7 
17.8 
20.7 
22.2 
16.5 


8.6 
10.4 
9.6 
6.2 
6.9 
8.5 
9.4 
6.1 


Fiscal 
year 


1900 
1905 
1906 
1907 


1910 
1911 
1912 


(gross) 


$1.92 
1.78 
1.53 
1.68 
1.69 
1.72 
1.89 
1.88 
1.72 


Maintenance  Conducting     Train  Rate  per  mile 

per  revenue        transportation    mile 

train  mile  per  revenue    earnings  Per  Per 

train  mile       (net)        passenger        ton 
Way      Equipment 


$.160 
.168 
.152 
.192 
.215 
.210 
.207 
.216 
.204 


570 


.740 
.565 
.597 
.493 
.592 
.725 
.644 
.529 


.0233 
.0235 
.0227 
.0198 
.0195 
.0192 
.0192 
.0206 


.0091 
.0090 
.0087 


Freight  Train      Freight      Passenger, 

density  load        to  all  freight 

revenue    traffic  and 

tons  company 

cars 


$.862    $.0241   $.0097     489,466 


520,031 
555,275 
625,176 
538,340 
550,958 
615,863 
672,233 
625,887 


276 
234 
225 


233 

245 
251 

274 


t  Includes  treasury  stock  upon  which  no  dividends 

[  232  ] 


70% 
70 


;  paid. 


10,608 
12,029 
12,483 
12,490 
13,036 
13,038 
12,238 
12,533 
12,098 


BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Chicago,  St.  Paul,  Minne- 
apolis &  Omaha  Railway  System,  together  with  the  bases  upon  which 
they  have  sold  during  the  decade  ending  December  31,  1912: 


CHICAGO,    ST.   PAUL,    MINNEAPOLIS    &    OMAHA   RAILWAY 
Consolidated  Mortgage  6s  &  3  ^  2s 

Dated  June  1,  1880  Maturing  June  1,  1930 

Interest  payable  June  1  and  December  1  at  the  Company's  office.  Ill  Broadway,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $30,000,000 


Outstanding  (6s)  $16,697,000 

(3Ks)      3,734,000 

Per  mile  ....  12,205 


Provisions  of     Of  the  $30,000,000  authorized,  $20,431,000  are  outstanding  as  above,  $7,766,000  are  reserved 
issue:  to  retire  prior  liens,  $1,801,954  are  reserved  for  additions  and  betterments  at  not  exceeding 

$15,000  per  mile,  and  $1,046  are  in  the  treasury  of  the  company. 

Security:  These  bonds  are  secured  by  a  direct  mortgage  on  1,674.23  miles  of  road,  and  property  and 

equipment  of  the  same.  They  are  secured  by  a  first  mortgage  on  661.39  miles,  covering  many 
important  branch  lines  in  Nebraska  and  Wisconsin.  They  are  further  secured  by  a  second 
mortgage  on  1,012.84  miles  covered  by  the  first  lien  of  the  Chicago,  St.  Paul  &  Minneapolis 
First  6s  of  1918,  the  St.  Paul  &  Sioux  City  First  6s  of  1919,  the  North  Wisconsin  First  6s 
of  1930,  in  part  by  the  Superior  Short  Line  First  5s  of  1930,  and  the  Sault  Ste.  Marie  & 
Southwestern  First  5s  of  1915.  Of  these  prior  liens,  the  Chicago,  St.  Paul,  Minneapolis  & 
Omaha  First  6s  of  1918,  the  St.  Paul  &  Sioux  City  First  6s  of  1919,  and  the  Northern  Wis- 
consin First  6s  of  1930  will  be  retired  by  bonds  of  the  above  issue,  at  which  time  the  property 
under  the  former  will  become  a  first  mortgage  under  the  latter. 

Trustee:  Central  Trust  Company,  New  York. 

The  Consolidated  Os  of  1930  sold  in  1902  on  a  3.i 


1902  on 

a  3.60  to  3.95  basi> 

1903 

3.80 

4.20 

1904 

3.85 

4.10 

1905 

3.62 

3.87 

1906 

3.70 

4.05 

1907 

3.95 

4.70 

1908 

3.85 

4.50 

1909 

3.85 

4.10 

1910 

4.00 

4.27 

1911 

4.05 

4.22 

1912 

4.10 

4.37 

The  Consolidated  3}/^s  of  1930  sold  in  1903  on  a  3.75  to  3.95  basis 

1909  4.00   4.20 

1910  4.25  (bid) 

1911  4.20  (bid) 

1912  4.37 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  IMassachusetts,  New  Hampshire, 
Vermont,  Connecticut  and  Rhode  Island. 


[  234  J 


SAULT    STE.    MARIE    &   SOUTHWESTERN   RAILWAY 
First  Mortgage  5s 

Dated  November  1,  1890  Maturing  November  1,  1915 

Interest  payable  May  1  and  November  1  at  the  Company's  office.  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  .$400,000  Outstandmg  $350,000 

Per  mile  .    .         9,459 

Provisions  of      Of  the  $400,000  authorized.  $50,000  are  owned  by  the  company,  and  $350,000  are  in  the  hands 
issue:  of  the  public  as  above. 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  line  from  Fairchild  to  Mondovi,  Wis., 

a  distance  of  36.75  miles;  also  on  equipment  and  future  acquisitions. 

The  bonds  have  been   ASSUMED   by  the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Railway 
Company. 

Equity:  This  issue  is  prior  in  lien  to  the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Consolidated  6s  and 

33^8  of  1930. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Sault  Ste.  Marie  &  Southwestern  Railway  was  chartered  March  29,  1886,  under  the  laws 
of  the  State  of  Wisconsin.  In  1890  the  line  was  opened  for  traffic,  and  in  1893  the  property  was 
merged  into  the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Railway  Company,  having  hitherto  been 
operated  as  a  proprietary  of  the  latter.  At  the  time  of  the  merger  the  above  bonds  were  assumed  by 
the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Railway  Company. 

These  bonds  were  quoted  in  1909  on  a  4.4;^  basis  (bid) 

1910  4.75 

1911  4.60 
December,  1912  5.00 

The  above  issue  is  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


[  235  ] 


CHICAGO,    ST.  PAXIL  &  MINNEAPOLIS   RAILWAY 
First  Mortgage  6s 

Dated  May  9,  1878  Maturing  May  1,  1918 

Interest  payable  May  1  and  November  1  at  the  Company's  office,  111  Broadway,  New  York. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal. 

Authorized  $3,000,000  Outstanding  $1,080,000 

Per  mile  .    .  6,545 

Provisions  of      Of  the  $3,000,000  authorized,  $1,080,000  are  in  the  hands  of  the  public  as  above,  and  the 
issue:  balance,  $1,920,000,  have  either  been  retired  by  the  sinking  fund,  or  exchanged  for  the  Chicago, 

St.  Paul,  Minneapolis  &  Omaha  Consolidated  6s  of  1930  under  a  conversion  clause  which  pro- 
vides for  an  exchange  at  par. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  177.6  miles  of  the  company's  road,  ex- 

tending from  Elroy,  Wis.,  to  the  east  bank  of  the  St.  Croix  River  near  Hudson.  They  are 
further  secured  by  a  first  mortgage  on  the  company's  equipment  and  property,  and  a  second 
mortgage  on  all  land  grants,  not  used  for  railroad  purposes,  now  owned  or  hereafter  acquired. 

These  bonds  have  been  ASSUMED  by  the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Railway 
Company.  The  latter's  Consolidated  6s  and  3j^s  of  1930  have  been  reserved  in  part  to  retire 
this  issue. 

The  Chicago,  St.  Paul  &  Minneapolis  Railway  was  chartered  under  the  laws  of  Wisconsin  in 
1863  as  the  successor  to  the  West  Wisconsin  Railway  Company.  Its  line  was  opened  for  traflBc 
December  1,  1872.  Upon  default  of  payment  of  its  bond  issue  in  January,  1875,  the  road's  prop- 
erty was  sold  under  foreclosure  in  March,  1878,  when  it  was  reorganized  under  its  present  title. 
It  was  consolidated  in  1880  with  the  North  Wisconsin  Railway  Company,  forming  the  Chicago, 
St.  Paul,  Minneapolis  &  Omaha  Railway  Company. 

These  bonds  sold  in  1902  on  a  2.80  to  3.20  basis 


1903 

2.95 

3.40 

1904 

3.05 

3.37 

1905 

2.70 

3.10 

1906 

2.60 

2.90 

1907 

3.00 

4.00 

1908 

2.60 

3.30 

1909-12 

under 

3.00 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  236  ] 


NORTH   WISCONSIN   RAILWAY 
First  Mortgage  6s 

Dated  January  1,  1880  Maturing  January  1,  1930 

Interest  payable  January  1  and  July  1  at  the  Company's  office.  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $800,000  Outstanding  $616,000 

Per  mile  .    .         3,480 

Provisions  of      Originally  these  bonds  were  authorized  at  $10,000  per  mile.    This  was  limited  to  $800,000  as 
issue:  above.     Besides  those  outstanding,  $184,000  have  been  exchanged  for  Chicago,  St.  Paul, 

Mimieapolis  &  Omaha  ConsoUdated  6s  of  1930  under  a  conversion  clause  which  provides  for 
an  exchange  at  par. 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  Company's  line  from  Bayfield  to  the  St. 

Croix  River,  Wis.,  177.51  miles.  They  are  further  secured  by  a  first  mortgage  on  the  equip- 
ment of  the  line  and  future  acquisitions.    Land  grants  are  not  included  in  the  mortgage. 

These  bonds  have  been  ASSUMED  by  the  Chicago,  St.  Paul,  Mmneapolis  &  Omaha  Rail- 
way Company.  The  latter's  Consolidated  6s  of  1930  have  been  reserved  in  part  to  retire  this 
issue. 

Trustee:  Central  Trust  Company,  New  York. 

The  construction  of  the  North  Wisconsin  Railway  was  commenced  in  1871,  and  the  company's 
line  was  opened  to  Granite  Lake,  Wisconsin,  in  1878.  It  was  operated  by  the  Chicago,  St.  Paul  & 
Minneapolis  Railway  and  was  merged  with  it,  forming  the  Chicago,  St.  Paul,  Minneapolis  &  Omaha 
Railway  in  1880. 

These  bonds  sold  in  1902  on  a  3.70  to  3.80  basis 


1903 

4.35 

1904 

4.12 

1909 

3.90 

1910 

4.25  (bid) 

1911 

4.22  (bid) 

December,  1912 

4.45  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  237  ] 


ST.   PAUL    &   SIOUX   CITY   RAILROAD 
First  Mortgage  6s 

Dated  July  1,  1879  Maturing  April  1,  1919 

Interest  payable  April  1  and  October  1  at  the  Company's  office.  111  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  jM-inci]jal. 

Authorized  $7,000,000  Outstanding    $6,070,000 

Per  mile    .    .  !),93,5 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  610.98  miles  of  road,  including  the  line  from 

St.  Paul,  Minn.,  to  Le  Mars,  la.,  241.49  miles,  and  from  Ponca  via  Sioux  City  to  Omaha, 
Neb.,  139.39  miles. 

This  issue  has  been    ASSUMED    by  the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Railway 
Company. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Consoli- 

dated 6s  and  sy2S  of  1930,  a  sufficient  number  of  which  have  been  reserved  to  provide  for  the 
retirement  of  this  issue. 

Trustee:  Central  Trust  Company,  New  York. 

The  St.  Paul  &  Sioux  City  Railroad  was  chartered  under  the  laws  of  tlie  State  of  Minnesota, 
March  2,  1855,  and  again  on  March  4,  1864.  The  road  was  opened  for  traffic  in  November,  1870,  and 
in  1880  it  was  consolidated  with  the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Railway  Company, 
at  which  time  the  latter  assumed  all  its  funded  indebtedness. 


These  bonds  sold  in  1902  on 

a  3.57  to  3.95  basi.- 

1903 

3.77 

4.17 

1904 

3.85 

4.17 

1905 

3.65 

3.90 

1906 

3.62 

4.05 

1907 

3.80 

4.87 

1908 

3.95 

4.22 

1909 

3.90 

4.25 

1910 

4.05 

4.40 

1911 

4.20 

4.35 

1912 

4.12 

4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  238  ] 


SUPERIOR   SHORT   LINE   RAILWAY 
First  Mortgage  5s 

Dated  June  1,  1895  Maturing  June  1,  1930 

Interest  payable  March  1  and  September  1  at  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $1,500,000  Outstanding  $1,500,000 

Security :  These  bonds  are  secured  by  a  first  mortgage  on  ten  miles  of  main  track  and  thirty -three  miles 

of  side  track;  on  lands  in  Superior  and  Duluth,  and  on  wharves,  buildings,  equipment,  etc. 

These  bonds  have  been  ASSUMED  by  the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Rail- 
way Company. 

Equity:  This  issue  is  prior  in  lien  to  the  Consolidated  6s  and  33^s  of  1930. 

Trustee:  Union  Trust  Company,  New  York. 

On  August  1,  1895,  the  property  of  the  Superior  Short  Line  Railway  Company  was  conveyed 
by  deed  to  the  Chicago,  St.  Paul,  ^linneapolis  &  Omaha  Railway  Company.  At  that  time  the 
latter  assumed  the  above  bonds. 

These  bonds  were  quoted  in  1911  on  a  4.37  basis  (bid) 
December,  1912  4.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hampshire. 


CHICAGO,   ST.   PAUL,   MINNEAPOLIS    &   OMAHA  RAILWAY 

Debenture  5s 

Dated  March  1. 1912  Maturing  March  1,  1930 

Interest  payable  March  1  and  September  1  at  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $15,000,000  Outstanding  $5,000,000 

Provisions  of      Of  the  amount  authorized,  $5,000,000  are  outstanding  as  above,  and  $10,000,000  have  been 
issue:  reserved  for  additions  and  betterments. 

Security:  These  bonds  are  not  secured  by  a  mortgage,  but  are  a  direct  obligation  of  the  Chicago,  St. 

Paul,  Minneapolis  &  Omaha  Railway  Company.  The  indenture  of  this  issue  provides  that 
no  increased  mortgage  debt  shall  be  created  or  issued  by  the  com]>any  without  equally  secur- 
ing these  bonds  with  such  additional  bonds  as  may  be  issued. 

Trustee:  Central  Trust  Company,  New  York. 

These  bonds  were  offered  to  the  public  early  in  1912  on  a  4.55  basis. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 

[  239  ] 


DELAWARE  AND  HUDSON  COMPANY 


DELAWARE  AND  HUDSON  COMPANY 


HISTORY 

The  Delaware  &  Hudson  Company  is  one  of  the  oldest,  if  not  the  oldest,  organization  of  its 
kind  in  the  country.  It  was  chartered  by  the  New  York  Legislature,  April  23,  1823,  as  the  Delaware 
&  Hudson  Canal  Company,  to  construct  a  canal  from  the  coal  fields  of  Pennsylvania  to  the  Hudson 
River  at  Rondout,  New  York.     This  canal  was  completed  and  opened  for  service  in  October,  1828. 

At  that  time  a  narrow  gauge  railroad,  to  serve  as  a  feeder  to  the  canal,  was  under  construction. 
This  road  was  known  as  the  "Gravity  RaUroad,"  and  was  completed  in  1829. 

It  was  not  until  1899  that  the  canal  was  sold.  The  "Gravity  Railroad"  was  then  broadened 
to  standard  gauge,  made  an  ordinary  steam  railroad,  and  thrown  open  for  passenger  and  freight 
business  in  1900. 

Since  that  time  several  lines  have  been  acquired  through  consolidation  or  otherwise.  The 
Adirondack  Railway  from  Saratoga  to  North  Creek,  New  York,  57  miles,  was  formally  absorbed  by 
this  company  on  November  5,  1902,  and  the  Schenectady  &  Duanesburgh  Railroad  on  August  4, 
1903.  In  July,  1903,  the  company  acquired  the  entire  capital  stock  of  the  Cooperstown  &  Charlotte 
Valley  Railroad  Company,  and  assmned  the  operation  of  its  line  and  its  leased  property,  the 
Cooperstown  &  Susquehanna  Valley  Railroad.  The  New  York  &  Canada  Railway  Company  was 
merged  with  the  Delaware  &  Hudson  Company  May  23,  1908,  and  the  Cherry  Valley,  Sharon  & 
Albany  Railroad  Company  on  July  17,  1908. 

Besides  these  consolidations,  the  Delaware  &  Hudson  Company  is  operating  the  following  com- 
panies' lines  under  lease: 

Albany  &  Susquehanna  Railroad 

On  February  24,  1870,  the  road  was  leased  for  the  term  of  its  charter  at  a  yearly  rental 
equivalent  to  interest  on  its  fimded  indebtedness  and  dividends  at  the  rate  of  7%  until 
July,  1902,  and  thereafter  at  the  rate  of  9%  per  annum. 

In  June,  1906,  a  suit  was  instituted  by  the  Albany  &  Susquehanna  Company  against  the 
Delaware  &  Hudson  Company',  claiming  that  the  former  should  have  the  benefit  of  the  sav- 
ing of  interest  made  upon  the  refunding,  in  1876  and  agam  in  1906,  of  $3,450,000  of  the 
old  Albany  &  Susquehanna  7%  Mortgage  Bonds,  the  interest  on  which  is  paid  by  the  Dela- 
ware &  Hudson  Company,  the  lessee,  as  part  of  the  rental.  The  United  States  Circuit 
Court  decided  in  favor  of  the  Albany  &  Susquehaima  Company,  and  this  decision  was 
affirmed  by  the  United  States  Supreme  Court  to  which  the  Delaware  &  Hudson  Company 
took  the  case.  Under  the  judgment,  the  latter  paid  $1,350,512  as  back  rentals  into  the 
treasury  of  the  Albany  &  Susquehanna  Railroad  Company  in  1909. 

Albany  &  Vermont  Railroad 

This  railroad  was  leased  in  perpetuity  to  the  Rensselaer  &  Saratoga  Railroad  Company. 
This  lease  was  assigned  to  the  Delaware  &  Hudson  Company  May  1,  1871.  The  annual 
rental  is  $20,000. 

Rensselaer  &  Saratoga  Railroad 

This  road  was  leased  in  perpetuity  to  the  Delaware  &  Hudson  Company  May  1,  1871,  the 
lessee  assuming  all  interest  and  leased  obligations,  and  guaranteeing  8%  per  annum  on  the 
[  243  ] 


capital  stock.  On  August  10,  1906,  the  Glens  Falls  Railroad  Company,  whose  line  ex- 
tends from  Fort  Edward  to  Caldwell,  New  York,  15  miles,  was  merged  with  this  company. 
The  Rutland  &  Whitehall  Railroad  and  the  Saratoga  &  Schenectady  Railroad  Companies 
were  leased  to  the  Rensselaer  &  Saratoga  Railroad  Company  prior  to  its  lease  to  the 
Delaware  &  Hudson  Company. 

Chateaugay  &  Lake  Placid  Railway 

This  companj''s  property  was  leased  to  the  Delaware  &  Hudson  Company  from  July  1, 
1903,  to  December  31,  2403,  at  a  rental  for  the  first  Hve  years  equivalent  to  the  surplus 
earnings  of  the  property. 

Northern  Coal  &  Iron  Company 

This  property  was  leased  December  1,  1873,  during  the  fidl  term  of  charter  or  any  renewal 
thereof,  to  the  Delaware  &  Hudson  Company,  which  owns  the  entire  capital  stock. 

The  Delaware  &  Hudson  Company  also  leases  the  Rome  &  Clinton  Railroad  and  the  Utica, 
Clinton  &  Binghamton  Railroad  Companies,  but  they  are  sublet  to  the  New  York,  Ontario  &  Western 
Railway  Company  for  a  term  of  thirty -five  years  from  June  1,  1886. 

The  Delaware  &  Hudson  Company  controls,  through  stock  ownership,  the  Greenwich  &  John- 
sonville  Railway  Company,  operating  31  miles  of  road  in  New  York  State;  the  Napierville  Junction 
Railway  Company,  operating  a  line  from  St.  Constant  Junction,  Canada,  to  Rouse's  Point,  New 
York,  27  miles;  the  Quebec,  Montreal  &  Southern  Railway,  operating  192  miles  in  Canada;  and 
the  Schoharie  Valley  Railway  Company. 

The  company  also  owns  a  half  interest  in  the  stock  of  the  Schenectady  Railway  Company  and 
the  entire  capital  stocks  of  the  Plattsburg  Traction  Company  and  the  Troy  &  New  England  Railway 
Company.  It  has  gone  quite  extensively  into  the  electric  traction  business,  owning  the  entire 
capital  stock  of  the  United  Traction  Company,  which  operated,  June  30,  1911,  over  90  miles  of 
electric  lines  in  Albany,  Troy,  and  the  vicinity.  The  latter  company,  in  turn,  controls  the  Hudson 
Valley  Railway,  which  operates  118  miles  of  electric  road  from  Troy,  New  York,  northerly  to  War- 
rensburg.  Besides  this,  the  United  Traction  Company  controls  through  lease  several  important 
electric  traction  <'ompanies,  including  the  Cohoes  Railway  Company,  the  Troy  &  Lansingburgh 
Railroad  and  I  lie  Waterford  &  Cohoes  Railroad  Company. 

During  1 !)()!)  tiie  Delaware  &  Hudson  Company  purchased  the  entire  capital  stock  of  the  Fort 
William  Henry  Hotel  Company.  This  property  consisted  of  about  twenty  acres  of  land,  a  simimer 
hotel  and  outbuildings,  situated  in  the  Village  of  Lake  George,  New  York,  at  the  point  of  interchange 
of  traffic  between  the  company's  line  and  the  boats  of  the  Lake  George  Steamboat  Company.  On 
June  24,  1909,  as  it  was  about  to  open  for  the  season,  the  hotel  and  its  contents  were  totally  destroyed 
by  fire.  Another  disastrous  fire  occurred  to  the  railroad's  hotel  property  in  the  total  destruction. 
May  25,  1910,  of  the  Hotel  Champlain,  located  at  Bluff  Point,  New  York.  Both  these  properties 
were  rebuilt  of  fireproof  material  and  modern  construction,  and  were  open  for  tourist  business  during 
the  summer  season  of  1911. 

COAL   DEPARTMENT 

A  history  of  the  Delaware  &  Hudson  Company  would  be  incomplete  without  some  mention  of 
the  valuable  coal  lands  and  mining  rights  which  it  controls.  On  the  general  balance  sheet  of  the 
company  for  the  fiscal  year  ending  December  31,  1911,  the  coal  owned  and  controlled  was  valued 
at  $16,667,697,  and  it  is  estimated  that  at  present  there  are  nearly  600,000,000  tons  of  such  coal 
unmined. 

Following  is  a  table  of  the  total  number  of  tons  minctl  by  the  Delaware  &  Hudson  Company, 

[  244  ] 


also  the  number  of  tons  mined  in  the  entire  region,  together  with  the  net  earnings  (exchiding  taxes) 
resulting  from  the  operation  of  the  coal  department,  for  the  years  1905  to  1911  inclusive: 

Year  Total  tons  mined  Xet  earnings  * 

By  the  company       In  entire  region 

1905 5,695,493  61,410,201  $2,525,957 

1906 5,401,389  55,698,595  1,209,519 

1907 6,623,508  67,109,393  1,173,205 

1908 6,526,871  64,665,014  1,145,418 

1909 6,199,042  61,969,885  507,875 

1910 6,647,659  64,905,786  358,662 

1911 7,280,939  69,954,299  284,219 

To  comply  strictly  with  the  terms  of  the  Commodities  Clause  of  the  Hepburn  Law,  the  company 
on  June  1,  1909,  made  a  contract  with  the  Hudson  Coal  Company  by  which  the  latter  purchases 
outright,  at  the  pit-mouth,  the  entire  output  of  the  company's  mines. 

PROPERTY 

For  the  fiscal  year  ending  December  31,  1911,  the  Delaware  &  Hudson  Railroad  operated  an 
average  of  877.6  miles,  of  which  790.23  miles  were  owned  or  leased  and  87.37  miles  were  operated 
under  trackage  rights. 

The  lines  of  the  system  extend  from  Wilkes-Barre,  Pa.,  on  the  south,  through  central  and 
northern  New  York,  including  Schenectady,  Albany,  Saratoga  Springs  and  Plattsburg,  across  the 
Canadian  Line  to  Montreal  and  Quebec.  There  are  many  important  branches  which  feed  the  main 
line  of  this  road,  notably  the  Honesdale,  Binghamton,  Rutland,  Lake  Placid  and  the  Noyan  Junction 
Branches.  The  bulk  of  the  mileage  of  the  system  lies  in  New  York  State,  the  population  of  which 
increased  from  5,998,853  in  1890,  to  9,113,614  in  1910. 

CAPITALIZATION 

The  annual  report  for  the  fiscal  year  ending  December  31,  1911,  shows  the  capitalization  of  the 
Delaware  &  Hudson  Company  to  be  apjiroximately  as  follows: 

Capital  stock $42,503,000 

Fimdeddebt 58,375,000 

Nominal  capital $100,878,000 

Rentals  capitalized®  5% 40,458,500 

Gross  capitalization $141,336,500 

Securities  owned 27,014,189 

Net  capitalization $114,322,311 

Net  capital  per  mile  operated $130,355 

Average  miles  operated      87.76 

Net  income  to  net  capital 9.2% 

Fixed  charges  to  net  income 50.0% 

Margin  of  safety 50.0% 

*  The  figures  in  this  cohimn  are  carried  into  the  income  account  of  the  Dehiware  &  Hudson  Company  as  "Other  income."  Taxes 
and  additions  to  property  necessary  to  the  coal  department  are  included  with  the  taxes  and  construction  charges  of  the  railroad. 

[  245  ] 


The  company  earned  a  total  net  income  equivalent  to  9.2%  on  its  net  capitalization.  This 
figure  is  substantially  higher  than  that  shown  by  either  the  New  York  Central  or  the  Pennsylvania, 
but  compares  much  less  favorably  with  the  figures  of  the  Lackawanna  and  the  Lehigh  Valley.  The 
Lackawanna's  net  capitalization  for  1911  was  reported  at  slightly  under  $154,000  per  mile,  upon 
which  a  net  income  of  15.4%  was  earned,  while  the  Lehigh  Valley  reported  a  net  capitalization  of  but 
$72,250  per  mile,  and  net  income  to  net  capital  of  above  15%.  The  showing  of  the  Delaware  & 
Hudson  is,  however,  very  satisfactory. 

A  figure  of  especial  interest  to  bondholders  is  that  known  as  the  "margin  of  safety."  The 
company's  surplus  over  charges  in  1911  represented  50%  of  its  total  net  income.  During  the  decade 
its  average  was  much  higher,  being  55%  as  compared  with  61%  for  the  Lackawanna  and  48%  for 
the  Lehigh  Valley. 

CHARACTER   OF   TRAFFIC 

The  Delaware  &  Hudson  Company  is  primarily  a  "coal  road."  Over  80%  of  the  total  traffic 
of  the  road  is  freight,  and  of  this  over  65%  represents  mine  products.  Below  is  a  classification  of  the 
freight  tonnage  of  the  road,  showing  the  ratios  of  the  various  classes  of  freight  for  the  years  1907  to 
1911  inclusive: 

Products  of  1911         1910         1909         1908         1907 

Agriculture 5.10%  5.21%  5.76%  4.50%  4.47% 

Animals 1.11  .93  1.21  1.19  1.22 

Mines      65.56  64.79  62.70  69.31  68.39 

Forests 4.41  4.76  5.48  4.48  4.52 

Manufactures 14.05  13.89  14.22  12.54  13.57 

Miscellaneous 9.77  10.42  10.63  7.98  7.83 

Following  are  some  of  the  more  important  freight  statistics  of  the  Delaware  &  Hudson  Company 
for  the  five  years  ending  1911,  showing  the  freight  density  and  train  load  for  the  period,  also  the 
revenues  from  coal  traffic  and  merchandise  traffic: 

Year  '  Freight  Train  Coal  frfijjht  Merchandise  Average 

density  load  tons  earnings  freight  rate  per  ton 

earnings  per  mile 

1907 2,972,525  452  $9,081,664  $7,533,168  $.0066 

1908 2,525,548  398  9,106,819  6,162,180  .0071 

1909 2,834,815  415  8,311,478  7,691,617  .0067 

1910 2,913,213  432  8,724,580  8,052,705  .0068 

1911 2,974,404  467  9,847,194  8,027,413  .0068 

It  will  be  seen  that  with  the  falling  off  m  freight  density  there  was  a  corresponding  decline  in 
train  load  in  1908,  but  the  increase  in  the  average  rate  per  ton  per  mile  helped  to  offset  this  loss. 
Since  1908,  however,  there  has  been  a  marked  increase  in  freight  density  and  average  train  load. 
In  the  face  of  somewhat  lower  rates  the  volume  of  earnings  also  has  shown  an  increase. 

The  average  freight  density  for  the  ])eriod,  also  the  average  train  load  and  freight  rate  per  ton, 
are  given  below  for  the  Delaware  &  Hudson,  Lackawanna  and  the  Lehigh  Valley : 

Five  years  Average  Average         Average 

freight  train  rate  per 

density  load  tons     ton  per  mile 

D.  &  H 2,844,101  433  $.0068 

Lackawanna 4,235,357  529  .0077 

Lehigh  Valley 3,271,700  535  .0064 

[  246  ] 


Of  the  total  gross  business  of  the  railroad  in  1911,  14%  represented  passenger  traffic.  In  1907 
the  ratio  was  the  same.  The  small  increases  in  passenger  density  from  year  to  year  have  been  very 
nearly  offset  in  earnings  by  a  steady  decline  in  the  average  rate  per  passenger,  as  is  shown  by  the 
following  table: 

Year  Passenger  Passenger  Average  rate 

density  earnings  per  passenger 

per  mile 

1907 162,940  $2,945,408  $.0214 

1908 150,277  2,693,672  .0212 

1909 159,991  2,834,628  .0210 

1910 167,210  2,910,026  .0206 

1911 165,730  2,967,129  .0204 


EARNINGS 

The  following  table,  compiled  from  the  annual  reports  of  the  comjKiny  for  the  five  years  ending 
1911,  shows  the  gross  and  net  earnings  based  on  the  average  miles  operated: 

Year  Average  miles      Gross  earnings  Per  mile  Net  earnings  Per  mile 

operated 

1907 845  $20,175,793  $23,877  $8,046,713  $9,524 

1908 845  18,500,731  21,894  7,689,010  9,099 

1909 843  19,525,859  23,162  8,067,380  9,570 

1910 843  20,431,800  24,237  8,233,513  9,768 

1911 877  21,421,816  24,426  8,663,657  9,880 

The  gross  earnings  of  1907  were  the  largest  that  the  company  had  ever  reported.  Since  that 
time  they  have  remained  very  steady.  The  1911  gross  earnings  were  6.1%  greater  than  those  re- 
ported in  1907.  Net  earnings  during  the  period  proved  more  stable,  being  7.6%  larger  in  1911  than 
in  1907,  which  was  the  high  record  up  to  that  time. 

During  the  business  depression  in  1908  gross  earnings  were  reduced  nearly  $1,700,000.  At  the 
same  time  operating  expenses  were  cut  $900,000,  leaving  a  net  decrease  for  the  year  of  nearly  $800,000. 
In  1909  gross  earnings  increased  slightly  over  $1,000,000  and  operating  expenses  $640,000,  resulting 
in  a  gain  in  net  earnings  of  nearly  $380,000.  In  1910  gross  earnings  reached  a  somewhat  higher 
level  than  those  of  1907,  but  this  gain  was  very  nearly  oti'set  by  increases  in  operating  expenses,  so 
that  the  net  gain  was  but  $160,000. 

The  saving  feature  of  the  earnings  record  of  1911  was  the  gain,  nearly  $1,125,000,  in  revenue  from 
coal  traffic.  While  net  earnings  showed  a  gain  of  but  $430,000,  owing  to  a  decline  in  earnings  from 
merchandise  freight  and  miscellaneous  sources  of  $215,000,  and  an  increase  in  operating  expenses  of 
nearly  $560,000,  the  fact  remains  that  the  earnings  of  1911,  both  gross  and  net,  were  the  best  the 
company  had  ever  known. 


247  ] 


MAINTENANCE 

The  Delaware  &  Hvidson  Company  is  liberal  in  its  maintenance  charges.  During  the  five  years 
ending  1911,  the  company  spent  for  upkeep  an  average  of  $4,861  per  mile  of  road  operated.  Tabu- 
lated below  are  the  amounts  spent  for  maintenance  in  the  years  1907  to  1911  inclusive: 

Year  Maiutenauce  of  ToUil  maintenance         Per  mile 

Way  Equipment 

1907 $1,836,871  $2,336,273  $4,173,144  $4,938 

1908 1,417,318  2,219,543  3,636,861  4,304 

1909 1,334,546  2,598,566  3,933,112  4,666 

1910 1,557,912  2,842,069  4,399,981  5,219 

1911 1,488,756  3,060,739  4,549,495  5,187 

A  comparison  of  the  Delaware  &  Hudson  with  the  Lackawanna,  and  the  Lehigh  Valley,  together 
with  the  average  traffic  densities  of  the  three  roads  in  question,  is  given  below: 

Five  years  Average  Average 

traffic  maintenance 

density  per  mile 

D.  &  H 3,005,330         $4,861 

Lackawanna 4,848,890         10,950 

Lehigh  Valley 3,441,794  6,527 

From  the  table  above,  it  would  seem  that  the  Lackawanna,  with  an  average  traffic  density  61% 
greater  than  that  of  the  Delaware  &  Hudson,  was  spending  125%  more  than  the  latter  during  the 
])eriod  in  question.  On  the  other  hand,  the  Lehigh  Valley,  with  a  traffic  density  14%  greater,  was 
spenduig  34%  more.  This  places  the  Delaware  &  Hudson  Company  in  a  slightly  unfavorable  rela- 
tive position,  but  the  Hudson's  charges  to  maintenance  are  probably  more  than  adequate. 

ADDITIONS   AND    BETTERMENTS 

The  Delaware  &  Hudson  Company  reports  in  its  balance  sheetof  December  31, 1911,  $6,751,837 
set  aside  from  earnings  for  additions  and  betterments  to  property  subsequent  to  June  30,  1907. 
The  following  additions  and  betterments  were  made  during  the  four  years  indicated: 

^ear  Additions  and  betterments  to 

Coal  property      Railroad  property 

1908 $650,283  $1,179,494 

1909 726,313  720,459 

1910 766,673  697,746 

1911 823,654  2,681,387 

$2,966,923         $5,279,088 
2,966,923 

Total  additions  and  betterments $8,246,011 


DIVIDENDS 

The  company  has  a  splendid  dividend  record.  From  the  date  of  its  organization,  in  1826,  to 
December  31,  1911,  this  company  has  paid  a  total  of  206  cash  dividends,  aggregating  641%,  or 
$103,033,206.     Following  is  the  dividend  record  of  the  company  from  1881  up  to  the  present  time: 

I  ^^48  J 


Year  Rate 

1881 41^% 

1882-4     7 

1885 6 

1886-7     5 

1888 6 

1889-96  7 

1897-1900  5 

1901-6     7 

1907-12  9 

Besides  the  above-mentioned  cash  dividends,  the  conijiany  has  paid  the  following  dividends  in 
the  form  of  stock : 

Year  Hate  Auiuunt 

1845 25%  $480,500 

1856 4  288,000 

1864 16%  1,250,000 

1865 142/7  1,250,000 

1868 20  2,000,000 

1890 5%  1,375,000 

The  Profit  and  Loss  Account  of  the  Delaware  &  Hudson  Company,  appearing  on  the  balance 
sheet  of  December  31,  1911,  was  $13,486,597,  or  31.7%  of  the  outstandmg  capital  stock. 

STATISTICS 

Following  are  the  capitalization,  earnings,  and  traffic  statistics  of  the  Delaware  &  Hudson  Com- 
pany, based  on  the  average  miles  operated,  for  the  years  1905  to  1911  inclusive: 


I  249 


THE   DELAWARE    &   HUDSON    COMPANY 


Fiscal 

Capital 

Funded 

Rentals 

Gross 

Owned  by 

Net 

Average 

Extra 

year 

stock 

debt 
$10,439 

©5% 

capital 

company 

capital 

miles 
operated 

843 

track 

1905 

$48,564 

$63,255 

$122,261 

$15,055 

$107,206 

303 

1906 

48,623 

26,631 

60,382 

135.636 

28,486 

107,150 

843 

301 

1907 

50,177 

37,961 

55,074 

143,212 

38,110 

105,102 

845 

330 

1908 

50,177 

53,297 

44,914 

148,388 

27,649 

120,739 

845 

344 

1909 

50,415 

61,779 

49,258 

161,452 

27,982 

133,470 

843 

344 

1910 

50,417 

61,192 

48,518 

160,127 

28,432 

131.695 

843 

344 

1911 

48,464 

66,562 

46,132 

161,158 

30,803 

130,355 

877 

368 

Fiscal 

Gross 

Maintenance 

Transportation 

Net 

Other 

Total  net 

Fixed 

Surplus  avail- 

year 

operating 

Way 

Equipment 

and  general 

operating 

mcome 

income 

charges 

able  for 

revenue 
$19,435 

$1,731 

expense 

revenue 

$2,996 

$3,996 

dividends 

1905 

$2,236 

$8,113 

$7,355 

$10,351 

$6,355 

1906 

20,225 

1.647 

2,392 

8,618 

7.568 

3.102 

10,670 

4,846 

5,824 

1907 

23.877 

2,173 

2,765 

9,415 

9.524 

3,127 

12,651 

5,415 

7,236 

1908 

21,894 

1,677 

2,627 

8.491 

9.099 

3.136 

12,235 

6,017 

6,218 

1909 

23,162 

1,583 

3,083 

8.926 

9.570 

2.751 

12,321 

6.165 

6,156 

1910 

24,237 

1,848 

3,371 

9.250 

9.768 

2.884 

12,652 

6.328 

6,324 

1911 

24.426 

1,697 

3,480 

9.359 

9.880 

2,134 

12,014 

6,041 

5,973 

Fiscal 

Dividends 

Other 

Surplus 

Total  main- 

Conducting 

Fixed 

Gross 

Net 

Per  cent 

year 

charges 

expenses 

tenance  to 

transporta- 

charges 

earnings 

income 

earned 

to  income 

to  gross 

gross 

tion  to  gross 

to  gross 

to  gross 

on  capital 

carnmgs 

earnings 

earnings 

earnings 
20.5% 

capital 
15.8% 

capital 
9.6% 

stock 

1905 

$3,404 

$1,219 

$1,732 

62.1% 

20.3% 

41.8%, 

13.08% 

1906 

3,401 

172 

2,251 

62.5 

19.9 

42.6 

23.9 

14.8 

9.9 

11.97 

1907 

4,514 

2,722 

60.0 

20.0 

39.4 

22.7 

16.6 

12.0 

15.25 

1908 

4,634 

1,584 

58.4 

19.7 

38.7 

27.4 

14.5 

10.1 

12.39 

1909 

4,538 

1,618 

.58.4 

19.9 

38.5 

20.2 

14.3 

9.2 

12.22 

1910 

4,538 

1,786 

59.6 

21.5 

38.1 

26.1 

15.1 

9.6 

12.54 

1911 

4,362 

1,611 

59.5 

21.2 

38.3 

24.7 

15.1 

9.2 

12.32 

Fiscal 
year 

Train 

mile 

earnings 

(gross) 

Maintenance  per 
revenue  train  mile 

Way     Equipment 

$.186        $.240 

Coiiductmg 

transportatioE 

per  revenue 

train  mile 

$.818 

Train 

mile 

earnings 

(net) 

Kate  per  mile 

Per               Per 
passenger          ton 

$.0217       $.0062 

Freight 
density 

Train 

load 

revenue 

tons 

455 

Freight 
to  all 
traffic 

Passenger, 

freight  & 

company 

cars 

1905 

$2.09 

$.846 

2,500,234 

80% 

13,879 

1906 

2.11 

.172 

.249 

850 

839 

.0214 

.0063 

2,550,934 

460 

80 

14,997 

1907 

2.33 

.218 

.273 

864 

975 

.0214 

.0066 

2,972.525 

452 

82 

22,939 

1908 

2.27 

.174 

.272 

881 

943 

.0212 

.0071 

2,525,548 

398 

82 

22,775 

1909 

2.31 

.158 

.307 

891 

954 

.0210 

.0067 

2,834,815 

415 

82 

22,449 

1910 

2.43 

.185 

.337 

928 

980 

.0206 

.0068 

2,913.213 

432 

82 

22,069 

1911 

2.57 

.178 

.367 

985 

1 

040 

.0204 

.0068 

2,974,404 

467 

83 

21.348 

[  250  ] 


BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Delaware  & 

Hudson  System,  together  with  the  bases  upon  which  they 

have  sold  during  the  decade  ending  December  31,  1912: 


DELAWARE    &   HUDSON    CANAL   COMPANY 
Pennsylvania  Division  First  Mortgage  Currency  7s 

Dated  September  1,  1877  Maturing  September  1,  1917 

Interest  payable  March  1  and  September  1  at  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000. 
Five  coupon  bonds  exchangeable  for  a  $5,000  registered  bond. 

Authorized  $5,000,000  Outstanding  $5,000,000 

Per  mile  .    .         102,041 

Security:  These  bonds  are  a  direct  obHgation  of  the  Delaware  &  Hudson  Company,  and  are  secured  by  a 

first  mortgage  on  48.75  miles  of  the  company's  road,  including  the  lines  from  Carbondale  to 
Scranton,  Pa.,  17  miles,  and  Lookout  Junction  to  Honesdale,  Pa.,  28  miles.  They  are  further 
secured  by  a  mortgage  upon  the  coal  lands  and  other  property  of  the  company  in  the  counties 
of  Lucerne,  Wayne  and  Susquehanna,  Pa. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Delaware  &  Hudson  First  &  Refunding  4s  of  1943,  a 

sufficient  number  of  which  have  been  reserved  to  retire  this  issue. 

Trustee:  Union  Trust  Company,  New  York. 

On  April  28,  1899,  the  name  of  the  Delaware  &  Hudson  Canal  Company  was  changed  to  the 
Delaware  &  Hudson  Company. 


These  bonds  sold  in  1902  on 

a  3.25  to  3.50 

1903 

3.60 

3.70 

1904 

3.40 

3.70 

1905 

3.45 

3.50 

1906 

3.37 

1908 

3.90 

4.10 

1909 

3.80 

4.25 

1910 

3.60 

3.75 

1911 

3.95 

4.05 

December,  1912 

4.62  (bid) 

These  bonds  are  consitlered  a  legal  investment  for  savings  banks  in  New  England. 


[  252  ] 


ADIRONDACK    RAILWAY 

First  Mortgage  Gold  4V2S 

Dated  March  1,  1892  Maturing  March  1,  1942 

Interest  payable  March  1  and  September  1  at  32  Nassau  Street,  New  York, 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $2,000,000  Outstanding    $1,000,000 

Per  mile  .    .  17,540 

Provisions  of      The  limit  of  this  issue  has  been  placed  at  the  amount  at  present  outstanding,  by  the  terms  of 
issue:  the  Delaware  &  Hudson  First  &  Refunding  Mortgage  4s  of  1943.     It  is  further  stipulated  that 

these  bonds  shall  not  be  extended  at  maturity. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Saratoga  to  North 

Creek,  N.  Y.,  57  miles.     They  are  further  secured  by  a  mortgage  on  the  company's  lands, 
buildings,  and  equipment  and  future  acquisitions. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Delaware  & 
Hudson  Canal  Company  by  endorsement. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Delaware  &  Hudson  First  &  Refunding  4s  of  1943,  a 

sufficient  number  of  which  have  been  reserved  to  retire  this  issue. 

Trustee:  United  States  Trust  Company.  New  York. 

The  Adirondack  Railway  Company  was  incorporated  under  the  laws  of  the  State  of  New  York 
on  July  7,  1882,  as  the  successor  to  the  Adirondack  Company  whose  property  was  sold  under  fore- 
closure, September  28,  1881.  In  1889  the  Delaware  &  Hudson  Canal  Company  purchased  a  con- 
trolling interest  in  this  company  and  it  was  foniially  merged  into  the  Delaware  &  Hudson  Com- 
pany, November  5,  1902. 

These  bonds  were  quoted  in  1909  on  a  4.25  basis  (bid) 

1910  4.50 

1911  4.35 
December,  1912  4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


253  ] 


SCHENECTADY   &  DUANESBURGH  RAILROAD 
First  Mortgage  6s 

Dated  September  1,  1874  Maturing  September  1,  1924 

Interest  payable  March  1  and  September  1,  at  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $100,  $500  and  $1,000, 

Authorized  $500,000  Outstanding  $500,000 

Per  mile    .    .      35,714 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Schenectady  to 

Duanesburgh,  New  York,  13.79  miles.     They  are  further  secured  by  a  mortgage  on  the  com- 
pany's lands,  buildings,  equipment,  etc. 

These  bonds  are  GUARANTEED  as  to  INTEREST  by  the  Delaware  &  Hudson  Company 
by  endorsement. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Delaware  &  Hudson  First  &  Refunding  4s  of  1943,  a 

sufficient  number  of  which  have  been  reserved  to  retire  this  issue. 

The  Schenectady  &  Duanesburgh  Railroad  was  incorporated  in  July,  1873,  under  the  laws  of 
the  State  of  New  Y'ork,  as  the  result  of  a  reorganization  of  the  Schenectady  &  Susquehanna  Railroad. 
It  was  leased  to  the  Delaware  &  Hudson  Canal  Company  for  the  interest  on  its  bonds,  which  amounted 
to  $30,000  annually.     On  August  4,  1903,  it  was  merged  into  the  Delaware  &  Hudson  Company. 

These  bonds  were  quoted  in  1909  on  a  4.45  basis  (bid) 

1910  4.55 

1911  4.65 
December,  1912  4.45 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


DELAWARE    &   HUDSON    COMPANY 

First  and  Refunding  Mortgage  Gold  4s 

Dated  May  1,  1908  Maturing  May  1,  1943 

Interest  payable  May  1  and  November  1  at  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000  and  multiples. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $50,000,000  Outstanding  $27,704,000 

Per  mile  .    .  87,120 

Provisions  of      Besides  the  amount  outstanding  as  above,  $6,500,000  of  these  bonds  have  been  reserved  to 
issue:  retire  prior  liens,  and  the  balance,  $15,796,000,  has  been  reserved  for  general  corporate  pur- 

poses, such  as  construction,  acquisition,  improvements,  etc. 
[  254  ] 


Security:  The  above  bonds  are  a  direct  obligation  of  the  company,  and  are  secured  by  a  direct  mortgage 

upon  317.8  miles  of  road,  leasehold  interests  in  435.75  miles,  and  trackage  rights  in  56.6  miles. 
They  are  also  secured  by  a  direct  lien  on  all  the  lands,  real  estate,  and  property  of  the  company, 
together  with  equipment  now  owned  or  hereafter  acquired. 

These  bonds  are  secured  by  a  first  mortgage  on  198.29  miles  of  road,  including  the  line  from 
Whitehall  to  Rouse's  Point,  N.  Y.,  113  miles.  They  are  secured  by  a  second  mortgage  on 
119.5  miles  of  road  covered  by  the  first  lien  of  the  Delaware  &  Hudson  Canal  Company  7s  of 
1917,  the  Adirondack  4^3  of  1942  and  the  Schenectady  &  Duanesburgh  6s  of  1924 

They  are  also  a  first  lien  upon  leasehold  interests  in  435.75  miles,  including  the  lines  of  the 
Albany  &  Susquehanna  Railroad  from  Albany  to  Binghamton,  N.  Y.,  143  miles;  the  line  of 
the  Albany  &  Vermont  Railroad  from  Albany  to  Waterford  Junction,  N.  Y.,  12.18  miles;  and 
the  mileage  of  the  Chateaugay  &  Lake  Placid  Railway,  Plattsburg  &  Dannemora  Railroad, 
Rensselaer  &  Saratoga  Railroad,  etc.,  and  trackage  rights  over  the  Erie  Railroad  totalling 
56.6  miles. 

Redemption:  These  bonds  are  redeemable  as  a  whole  at  107}/^  and  interest  on  May  1,  1918,  or  any  interest 
date  thereafter,  upon  thirteen  weeks'  notice. 

Sinking  fund :  The  company  has  provided  a  sinking  fund  for  this  issue  whereby  the  trustee  is  paid  annually, 
beginning  June  1,  1909,  a  sum  equal  to  1%  of  the  bonds  outstanding,  to  be  used  by  the  trustee 
at  the  direction  of  the  company,  either  for  the  purchase  of  bonds  issued  or  for  construction, 
additions  and  betterments  to  the  property  mortgaged  hereunder. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

These  bonds  sold  in  1908  on  a  3.87  to  3.95  basis 

1909  3.85       4.00 

1910  3.97       4.12 

1911  3.97       4.12 

1912  4.02       4.15 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


DELAWARE    &   HUDSON    COMPANY 
Equipment  Debenture  Gold  4s 


Dated  January  1,  1900 


Maturing  $200,000  annually 
January  1,  1902,  to  1913 
$100,000  January  1,  1914 

Interest  payable  January  1  and  July  1  at  32  Nassau  Street,  New  York. 
Registered  bonds  of  $10,000. 

Authorized  $2,500,000  Outstanding  $500,000 


$2,000,000  of  these  bonds  have  been  retired  up  to  the  present  time. 

Security :  The  above  bonds  are  a  direct  obligation  of  the  company,  but  are  not  secured  by  a  mortgage, 

although  issued  for  the  purchase  of  1,000  gondola  cars,  1,000  box  cars,  and  42  locomotives. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 

[  255  ] 


DELAWARE   &  HUDSON   COMPANY 

Convertible  Ten-Year  Debenture  Gold  4s 

Dated  June  15,  1906  Maturing  June  15,  1916 

Interest  payable  June  15  and  December  15  at  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Authorized  $14,000,000  Outstanding  $13,973,000 

$27,000  of  these  bonds  have  been  converted  into  stock  of  the  company. 

Security :  The  above  bonds  are  a  direct  obligation  of  the  company,  but  are  not  secured  by  a  mortgage. 

$10,000,000  of  these  bonds  were  issued  to  purchase  the  entire  capital  stock  of  the  Union  Trac- 
tion Company  of  Albany,  N.  Y.,  and  oue-half  interest  in  the  Schenectady  Railway.  $2,400,000 
of  the  proceeds  of  this  issue  were  used  to  purchase  new  equipment,  and  $1,600,000  were  spent 
in  constructing  the  cut-off  around  Wilkes-Barre,  Pa. 

Convertibility:  The  privilege  of  exchanging  a  $1,000  bond  of  this  issue  for  five  shares  (par  value  $100)  of  the 
capital  stock  of  the  Delaware  &  Hudson  Company,  at  par,  ends  June  15,  1912. 

Registrar:  National  Bank  of  Commerce,  New  York. 

These  bonds  sold  in  1906  on  a  2.50  to  3.30  basis 

1907  2.75  5.75 

1908  3.27  4.85 

1909  2.75  4.00 

1910  3.62  4.65 

1911  4.00  4.80 

1912  4.30  4.90 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


DELAWARE   &  HUDSON   COMPANY 

First  Lien  Equipment  4l'>s 

Dated  June  1,  1907  Maturing  July  1,  1922 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  32  Nassau  St.,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Authorized  $10,000,000  Outstanding  $9,698,000 

$302,000  of  these  bonds  have  been  retired  by  the  sinking  fund. 

Security:  These  bonds  are  a  direct  obligation  of  the  company.    They  are  secured  by  a  first  mortgage 

upon  equipment,  including  composite  hopper  coal  cars,  steel  underframe  platform  cars  and 
steel  underframe  box  cars,  certified  to  have  cost  over  $11,000,000. 
r  256  1 


The  Delaware  &  Hudson  Company  agrees  to  keep  the  equipnaent  in  complete  repair;  to  renew 
and  replace  worn  out,  lost  or  destroyed  equipment;  and  to  keep  it  insured  against  fire  loss  or 
damage,  or  other  loss,  to  an  amount  equal  to  80%  of  the  value.  The  equipment  remains  the 
property  of  the  United  States  Mortgage  &  Trust  Company  until  these  bonds  are  paid. 

Sinking  fund :  The  company  has  provided  a  sinking  fund  for  this  issue,  whereby  the  trustee  is  paid  annually, 
beginning  July  1,  1908,  the  sum  of  $650,000  to  be  used  at  the  direction  of  the  company  by  the 
trustee  either  to  purchase  these  bontls  for  cancellation  or  to  purchase  additional  equipment  to 
become  subject  to  this  indenture,  or  to  purchase  bonds  legal  for  New  York  State  Life  Insur- 
ance Companies. 

Up  to  December  31,  1911,  the  total  receipts  of  this  fund  amounted  to  $2,658,187,  made  up  of 
annual  payments  amounting  to  $2,600,000  and  interest  on  cash  balance  and  investments 
amounting  to  $58,187.  This  amount  has  been  disbursed  as  follows:  47  locomotives  were 
acquired  at  the  cost  of  $1,153,985;  302  Delaware  &  Hudson  First  Lien  Equipment  bonds  have 
been  purchased  and  retired,  including  accrued  interest,  at  the  cost  of  $308,067,  and  the  balance, 
in  the  hands  of  the  trustee,  amounted  to  $1,196,135. 

Trustee:  United  States  Mortgage  &  Trust  Company,  New  York. 

These  bonds  in  July,  1912,  were  quoted  on  a  4.30  basis  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampsliire  and  Rhode  Island. 


ALBANY    &    SUSQUEHANNA   RAILROAD 
First  Mortgage  3U'S 

Dated  April  1,  1906  Maturing  April  1,  1946 

Interest  payable  April  1  and  October  1  at  the  Company's  ofBce,  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $5,000. 

Five  coupon  bonds  are  exchangeable  for  one  registered  bond. 

Authorized  $10,000,000  Outstanding  $6,444,000 

Per  mile  .    .  45,060 

Provisions  of      These  bonds  were  issued  to  retire  $10,000,000  Consolidated  6s  and  7s  of  1906.    In  addition  to 
i.ssue:  the  $6,444,000  in  the  hands  of  the  public,  mentioned  above,  $3,556,000  have  been  converted 

into  Delaware  &  Hudson  Company  stock  and  are  held  in  the  latter's  treasury. 

Convertibility:  The  above  bonds  are  convertible  into  Delaware  &  Hudson  Company  stock  at  the  rate  of  $500 
in  stock  for  each  $1,000  bond.    This  privilege  terminates  April  1,  1916. 

Security:  These  bonds  are  a  direct  obligation  of  the  company,  secured  by  a  first  mortgage  on  142.59 

miles  of  the  company's  line  from  Albany  to  Binghamton,  N.  Y.     They  are  also  secured  by  a 
first  mortgage  on  equipment,  other  property,  and  future  acquisitions. 

They  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Delaware  &  Hudson 
Company  by  endorsement. 

Trustee:  United  States  Mortgage  &  Trust  Company,  New  York. 

[  257  ] 


The  Albany  &  Susquehanna  Railroad  was  chartered  under  the  laws  of  the  State  of  New  York, 
April  19,  1851.  The  road  was  opened  for  traffic  January  14,  1869.  On  February  24,  1870,  it  was 
leased  in  perpetuity  to  the  Delaware  &  Hudson  Company  at  an  annual  rental  equivalent  to  interest 
on  bonds,  dividends  at  the  rate  of  7%  until  January,  1903,  and  thereafter  at  the  rate  of  9%. 

These  bonds  sold  in  1907  on  a  3.05  to  4.35  basis 


1908 

3.50 

3.95 

1909 

3.15 

3.65 

1910 

3.62 

4.00 

1911 

3.80 

4.05 

1912 

3.87 

4.15 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


SARANAC   &  LAKE  PLACID   RAILROAD 

First  Mortgage  5s 

Dated  May  1,  1893  Maturing  November  1,  1913 

Interest  payable  May  1  and  November  1  at  the  Company's  office,  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $120,000  Outstanding  $120,000 

Per  mile  .    .       12,000 

Security :  These  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Saranac  to  Lake  Placid, 

N.  Y.,  a  distance  of  9.98  miles.    They  are  also  secured  by  a  first  mortgage  on  equipment  and 
other  property  now  owned  or  hereafter  acquired. 

Trustee:  Central  Trust  Company,  New  York. 

The  Saranac  &  Lake  Placid  Railroad  was  chartered  under  the  laws  of  the  State  of  New  York  on 
July  12,  1890.  The  road  was  opened  July  15,  1894.  In  1903,  this  road,  together  with  the  Chateau- 
gay  Railroad  and  the  Chateaugay  Railway  consolidated  under  the  name  of  the  Chateaugay  &  Lake 
Placid  Railway  Company,  the  latter  being  leased  for  500  years  to  the  Delaware  &  Hudson  Company 
at  a  rental  for  the  first  five  years  equivalent  to  the  surplus  earnings  of  the  company. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


[  258 


RENSSELAER    &   SARATOGA   RAILROAD 

First  Mortgage  7s 

Dated  May  1,  1871  Maturing  May  1,  1921 

Interest  payable  May  1  and  November  1  at  the  Company's  office,  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $1,000. 

Authorized  $2,000,000  Outstanding  $2,000,000 

Per  mile  .    .  14,815 

Security:  These  bonds  are  a  direct  obligation  of  the  company.    They  are  secured  by  a  first  mortgage  on 

the  company's  line  for  a  distance  of  135.28  miles;  also  on  buildings,  equipment,  etc. 

This  issue  is  GUARANTEED  as  to  INTEREST  by  the  Delaware  &  Hudson  Canal  Company, 
by  endorsement. 

The  Rensselaer  &  Saratoga  Railroad  was  chartered  under  the  laws  of  the  State  of  New  York 
on  April  14,  1832,  and  was  commercially  opened  on  March  19,  1836.  The  company,  including  leased 
and  merged  lines,  was  leased  in  perpetuity  to  the  Delaware  &  Hudson  Canal  Company  on  May  1 , 
1871,  the  latter  company  assuming  all  obligations  and  guaranteeing  8%  on  the  capital  stock. 

These  bonds  sold  in  1902  on  a  3.30  to  3.75  basis 


1904 

3.37 

3.65 

1905 

3.50 

1906 

4.00 

1908 

4.10 

4.15 

1909 

4.00 

4.05 

1910 

3.65 

4.30 

1911 

4.00 

4.27 

1912 

4.12 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  Connecticut  and  Rhode  Island. 


COOPERSTOWN    &    SUSQUEHANNA   VALLEY   RAILROAD 
First  Mortgage  5s 

Dated  May  1,  1888  Maturing  May  1,  1918 

Interest  payable  May  1  and  November  1  at  the  Company's  office,  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $100,  $200,  $300  and  $500. 

Authorized  $200,000  Outstanding  $200,000 

Per  mile  .    .       10,526 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  company's  fine  from  Cooperstown  to  Char- 

lottes Crossing,  N.  Y.,  19.48  miles.    They  are  also  secured  by  a  first  mortgage  on  equipment 
and  future  acquisitions. 

[  259  ] 


The  bonds  are  GUARANTEED  as  to  INTEREST  by  the  Cooperstown  &  Charlotte  Valley 
Railroad  Company. 

The  Cooperstown  &  Susquehanna  Valley  Railroad  was  chartered  under  the  laws  of  the  State 
of  New  York  on  February  25,  1865,  and  was  opened  for  traffic  July  14,  1869.  On  April  30,  1888, 
the  road  was  leased  for  99  years  to  the  Cooperstown  &  Charlotte  Valley  Railroad,  whose  entire  capital 
stock  is  owned  by  the  Delaware  &  Hudson  Company. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


GREENWICH   &   JOHNSONVILLE   RAILWAY 
First  Mortgage  4s 

Dated  January  1,  1904  Maturing  January  1,  1924 

Interest  payable  January  1  and  July  1  at  Standard  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $500,000  Outstanding  $400,000 

Per  mile  .    .  1,265 

Provisions  of      Of  the  $500,000  authorized,  $100,000  are  reserved  for  improvements,  betterments  and  equip- 
issue:  ment,  and  $400,000  are  outstanding  as  above. 

Security:  These  bonds  are  a  direct  obligation  of  the  company.    They  are  secured  by  a  first  mortgage  on 

31.62  miles  of  the  company's  line,  and  upon  lands,  buildings  and  future  acquisitions. 

Trustee:  Standard  Trust  Company,  New  York. 

The  Greenwich  &  Johnsonville  Railway  was  chartered  under  the  laws  of  the  State  of  New  York, 
in  1866,  as  the  Union  Village  &  Johnsonville  Railway  Company.  Its  name  was  changed  to  that  of 
the  Greenwich  &  Johnsonville  Railway  in  1879.  Control  of  the  company  was  acquired  by  the 
Delaware  &  Hudson  Company  in  1906.  The  latter  owns  the  entire  $225,000  capital  stock  out- 
standing at  the  present  time. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hampshire. 


[  260  ] 


DELAWARE,  LACKAWANNA  &  WESTERN  RAILROAD  COMPANY 


DELAWARE,  LACKAWANNA  &  WESTERN  RAILROAD  COMPANY 


HISTORY 

The  Delaware,  Lackawanna  &  Western  Railroad  Company  was  incorporated  by  special  act  of 
the  Legislature  of  Pennsylvania,  approved  April  7,  1832,  as  the  Ligetts  Gap  Railroad.  The  road 
was  actually  chartered  March  18,  1849,  and  by  special  act  the  name  was  changed  on  April  14,  1851, 
to  that  of  the  Lackawanna  &  Western  Railroad  Company. 

April  30,  1853,  the  Lackawanna  &  Western  was  consolidated  with  the  Delaware  &  Cobbs  Gap 
Railroad  (chartered  December  4,  1850),  and  the  consolidated  roads  took  the  name  of  the  Delaware, 
Lackawanna  &  Western  Railroad  Company.  The  company's  line  from  Scranton  to  Great  Bend 
was  opened  for  traffic  October  20,  1851,  and  from  Scranton  to  the  Delaware  River,  May  27,  1856. 

Since  that  time  the  company  has  taken  over  many  important  subsidiaries  by  lease  and  through 
control  of  their  capital  stocks.  In  1857  the  Warren  Railroad,  whose  line  extended  from  the  Delaware 
River  to  a  junction  with  the  Central  Railroad  of  New  Jersey,  was  leased,  the  latter  line  being  used 
up  to  1875  as  an  outlet  to  the  Hudson  River.  In  1868  the  Morris  &  Essex  Railroad  was  leased,  and 
the  Oswego  &  Syracuse  Railroad  in  the  following  year.  Control  was  obtained  also  of  the  Syracuse, 
Binghamton  &  New  York  Railroad  through  the  purchase  of  the  major  part  of  its  stock. 

In  1871  an  important  extension  was  built,  known  as  the  Valley  Railroad,  to  connect  the  Syracuse 
line  at  Binghamton  with  the  main  line  at  Great  Bend,  and  in  1873  the  property  of  the  Lackawamia 
&  Bloomsburg  Railroad  was  taken  over.  In  September,  1881,  the  company  secured  control  of  the 
Sussex  Railroad  of  New  Jersey  through  the  purchase  of  a  majority  of  its  stock.  The  New  York, 
Lackawanna  &  Western  Railway  was  leased  in  October,  1882,  and  was  the  finishing  linlv  in  the  line 
to  Buffalo.  During  that  year,  also,  the  Passaic  &  Delaware  Railroad  of  New  Jersey  was  absorbed. 
In  1889  two  important  operating  contracts  were  entered  into,  one  with  the  Morris  &  Essex  Exten- 
sion Railroad,  giving  the  Delaware,  Lackawamia  &  Western  an  entrance  into  the  city  of  Paterson, 
New  Jersey,  and  the  other  with  the  Passaic  &  Delaware  Extension  Railroad,  giving  operating  rights 
over  a  small  but  important  line  extending  from  Bernardsville  to  Gladstone,  New  Jersey. 

No  further  additions  were  made  until  1903,  when  the  company  acquired  the  entire  capital  stock 
of  the  New  York  &  Hoboken  Ferry  Company,  operating  ferries  on  the  Hudson  River  between  New 
York  and  Hoboken,  New  Jersey.  In  1905  the  Lackawanna  purchased  practically  all  the  outstanding 
stock  of  the  Harlem  Transfer  Company,  securing  thereby  the  control  and  use  of  valuable  terminal 
properties  on  the  Harlem  River.  In  the  following  year  the  properties  of  the  Brooklyn  Warehouse 
&  Dry  Docks  Company  and  the  Brooklyn  Dock  &  Terminal  Company,  which  owned  two  dry  docks, 
four  slips,  float  bridges,  warehouses,  two  miles  of  railroad  track,  etc.,  were  secured. 

Early  in  1908  a  company  known  as  the  Lackawanna  Railroad  Company  of  New  Jersey  was 
organized  under  the  laws  of  that  state  for  the  purpose  of  building  a  cut-off  line  between  Slateford, 
Pennsylvania,  and  Port  Morris,  New  Jersey.  The  reason  for  this  expensive  piece  of  construction  was 
to  enable  the  railroad  to  haul  a  large  proportion  of  its  traffic  over  a  low-grade  short  cut  at  an  actual 
saving  of  eleven  miles.  The  line  was  completed  and  put  into  service  on  December  24,  1911,  and  has 
been  in  continuous  use  since  that  time.  The  Lackawanna  Railroad  has  been  leased  in  perpetuity  to 
the  Delaware,  Lackawanna  &  Western  Railroad  Company  at  an  annual  rental  equal  to  4%  on  the 
capital  stock  outstanding.  The  capital  stock  of  the  company,  which  the  latter  held  in  its  treasury 
in  return  for  moneys  advanced  to  pay  for  its  construction,  was  distributed  pro  rata  among  the  stock- 

[  263  ] 


holders  of  the  Delaware,  Lackawanna  &  Western  as  a  dividend  of  35%  on  their  holdings.     The  total 
cost  of  this  line,  to  December  31,  1911,  was  $11,065,511. 

On  July  1,  1909,  the  Bangor  &  Portland  Railway  and  the  Hanover  &  Newport  Railroad  Com- 
panies were  merged  with  the  Delaware,  Lackawanna  &  Western  Railroad.  The  Bangor  &  Portland 
Railroad  Company  was  the  result  of  a  consolidation,  July  1,  1899,  of  a  company  of  that  name  with 
the  Nazareth  &  Lehigh  Railway  Company,  and  its  capital  stock  had  been  controlled  since  then  by 
the  Lackawanna.  The  Hanover  &  Newport  Railroad  was  chartered  in  1894,  and  its  road  was  com- 
pleted to  two  collieries  belonging  to  the  Lackawanna.  Its  only  earnings  were  from  rents  for  the 
use  of  its  tracks  by  that  company. 

COAL  DEPARTMENT 

The  Lackawanna  is  one  of  the  largest  owners  of  anthracite  coal  lands  in  America.  It  has  been 
estimated  that  the  total  immined  coal  of  this  company  approximates  400,000,000  tons.  Based  on 
the  company's  reports,  the  tonnage  sales  and  profits  of  its  coal  department  for  the  five  years  ending 
1911,  are  given  below: 

Year  Tons  sold  Total  sales  Net  profits  of 

and  earnings  coal  department 

1907 10,384,191  $40,296,289  $4,224,921 

1908 9,610,127  38,185,417  4,166,792 

1909 10,565,906  35,535,813  4,628,771 

1910 9,916,837  21,708,054  3,381,262 

1911 9,891,111  22,506,214  3,490,085 

The  decrease  in  total  sales  and  earnings  in  1909  and  1910  was  due  to  the  fact  that  the  railroad, 
on  August  1,  1909,  discontinued  the  sales  of  its  coal  department  to  conform  with  the  decision  rendered 
by  the  United  States  Supreme  Court  that  railroad  companies  cannot  lawfully  transport  in  interstate 
commerce  coal  owned  by  themselves.  A  coal-selling  company  known  as  the  Delaware,  Lackawanna 
&  Western  Coal  Company  was  organized.  A  contract  was  entered  into  with  the  new  Coal  Company, 
whereby  the  railroad  agreed  to  sell  its  coal  on  loaded  cars  at  the  mines,  at  what  is  known  as  the 
65%  basis  of  tidewater  prices.  It  also  agreed  to  sell  and  turn  over  all  stocks  of  coal  along  its 
lines  and  on  western  docks,  and  to  lease  its  trestles  to  the  Coal  Company. 

During  the  months  of  April  and  May,  1912,  coal-mining  operations  were  entirely  suspended 
pending  rearrangement  of  the  basis  of  wages  for  the  miners,  which  had  been  fixed  previously  by  the 
Anthracite  Strike  Commission  of  1902.  As  a  result  of  this  suspension,  the  Lackawanna's  operating 
income  probably  will  show  a  loss  for  the  fiscal  year  of  1912.  Mining  operations  were  begun  again 
in  June,  but  the  concessions  granted  will  undoubtedly  increase  the  cost  of  production,  which  will 
probably  mean  a  substantial  increase  in  the  price  charged  the  consumer. 


PROPERTY 

The  Lackawanna  operated  at  the  close  of  the  fiscal  year  ending  December  31,  1911,  a  total  of 
985.26  miles.  Of  this  amount,  239.72  miles  were  owned  in  fee,  603.41  miles  were  those  of  leased 
lines,  and  142.13  miles  represented  the  mileage  of  controlled  roads.  The  a^•erage  miles  operated  by 
the  company,  used  as  a  basis  in  this  report,  were  815.69. 

The  entire  mileage  of  the  road  lies  in  the  States  of  Pennsylvania,  New  Jersey  and  New  York, 
whose  population  in  1900  was  15,454,708  and  in  1910  was  19,315,557.  In  Pennsylvania  246.1  miles 
were  being  operated,  in  New  Jersey  202.97  miles  and  in  New  Y'ork  394.06  miles. 

The  main  line  extends  westerly  from  New  York,  through  the  anthracite  coal  belt  to  Buffalo, 

[  264  ] 


with  three  important  branches:  two  from  Bingham  ton  to  Oswego,  on  Lake  Erie,  and  Utica;  the 
other  from  Scranton,  into  the  coal  fields  of  Pennsylvania,  to  Northumberland. 


CAPITALIZATION 

The  capitalization  of  the  Delaware,  Lackawanna  &  Western  Railroad  on  December  31,  1911, 
was  approximately  as  follows: 

Capital  stock  (excluding  premiums) $30,277,000 

Funded  debt      320,000 

Nominal  capital $30,597,000 

Rentals  capitalized  @  5% 104,097,780 

Gross  capitalization      ■    ■    ■ $134,694,780 

Securities  owned 9,580,963 

Net  capitalization $125,113,817 

Net  capital  per  mile  operated $153,512 

Average  miles  operated 815.69 

Net  income  to  net  capital 15.4% 

Fixed  charges  to  net  income 38.6% 

Margin  of  safety 61.4% 

As  will  be  seen  by  the  foregoing,  the  nominal  capital  of  the  Lackawanna  is  comparatively  low. 
Especially  noticeable  is  the  fact  that  the  company  has  no  mortgage  debt  of  its  own,  the  $320,000 
above  representing  the  mortgage  bonds  outstanding  of  the  Bangor  &  Portland  Railway  Company 
which  were  assumed  by  the  Lackawanna  at  the  time  of  the  consolidation  in  1909. 

Two-thirds  of  the  mileage  of  the  system  is  leased  at  certain  fixed  rentals.  For  the  use  of  603 
miles  the  company  paid  rentals  amounting  to  $5,204,889.  This  figure,  capitalized  at  5%,  gives  us 
an  approximate  capitalization  of  these  leased  lines  of  over  $104,000,000,  a  figure  equal  to  77%  of 
the  total  gross  capitalization. 

Of  the  securities  which  the  company  holds  in  its  treasury,  $7,374,000  are  stocks  and  bonds  of 
leased  roads  from  which  the  company  derives  an  average  income  of  5.7%. 

The  net  capital  of  the  Lackawanna  per  mile  operated  averaged  $146,656  during  the  five  years 
ending  1911,  as  compared  with  the  Reading's  average  of  $168,000  and  that  of  the  Lehigh  Valley, 
$68,200.  The  total  net  income,  in  comparison  with  the  net  capitalization  of  the  road,  places  the 
Lackawanna  almost  in  a  class  by  itself.  Its  net  income  for  the  five  years  was  over  18%  on  the  above 
net  capital,  while  the  Reading  earned  but  13.5%  on  a  slightly  higher  capitalization.  The  Lehigh 
Valley's  average  net  income  to  net  capital  for  the  period  was  but  15%. 

The  most  remarkable  thing  about  these  figures  is  the  margin  of  safety  for  the  interest  on  under- 
lying securities  of  the  company  which  in  1911  was  61%;  that  is,  the  surplus  available  for  dividends, 
after  all  fixed  charges,  was  61%  of  the  total  net  income. 

Durmg  the  five  years  this  figure  averaged  66%  for  the  Lackawanna.  The  Reading's  average 
was  54%,  while  that  of  the  Lehigh  Valley  was  52%. 


[  265  ] 


CHARACTER    OF   TRAFFIC 

The  Lackawanna  is  primarily  a  "coal  road,"  as  is  attested  by  the  fact  that  during  1911  nearly 
75%  of  the  company's  business  was  freight,  of  which  60%  was  represented  by  coal  and  coal  products. 
Based  on  earnings  39%  of  the  total  business  of  the  company  was  embodied  in  this  one  traffic 
item. 

Following  is  a  table  showing  the  ratios  of  freight  tonnage  for  the  five  years  ending  1911: 

Products  of  1911        1910        1909        1908        1907 

Agriculture 8.76%  7.75%  7.43%         6.98%         8.54% 

Animals 1.68  1.50  1.61  2.01  2.23 

IVIines 60.22  60.00  61.91  64.98  60.15 

Forests      2.92  2.90  3.10  1.90  2.32 

Manufactures 13.42  14.37  13.15  9.24  9.20 

Miscellaneous 13.00  13.48  12.80  14.89  17.56 

Of  the  total  tonnage  of  the  company  during  the  period  in  question  nearly  half  is  represented  by 
anthracite  coal  carried: 


1911 

1910 

1909 

1908 

1907 

Total  tonnage 

.   21,732,254 

21,750,510 

20,391,134 

18,199,155 

21,082,119 

Anthracite 

.     9,928,149 

9,991,557 

10,118,134 

9,971,061 

10,556,558 

To  show  the  operating  efficiency  of  the  Lackawanna,  and  the  effect  it  has  had  upon  the  company' 
earnings,  the  following  statistics  are  given  for  the  five  years  ending  December  31,  1911: 


Year 

Freight 
density 

Train 
load  tons 

Earnings 
Coal            .           Merchandise 

Rate 
Coal           Merchandis 

1907 

.   4,529,671 

490 

$14,361,416 

$12,235,807 

$.0085 

$.0068 

1908 

.   4,001,377 

484 

14,558,702 

9,850,008 

.0086 

.0071 

1909 

.   4,057,112 

520 

14,464,221 

11,393,859 

.0086 

.0070 

1910 

.   4,256,591 

567 

14,067,777 

12,443,473 

.0084 

.0069 

1911 

.   4,332,035 

583 

14,096,725 

12,462,679 

.0083 

.0067 

As  will  be  seen  by  the  foregoing,  there  is  a  general  decline  in  every  item  except  one.  The  number 
of  tons  carried  one  mile  per  mile  of  road  (freight  density),  as  compared  with  the  1907  figure,  de- 
clined 4.6%  in  1911,  showing  a  comparatively  steady  tonnage  figure.  The  number  of  revenue  tons 
per  freight  train,  however,  increased  markedly  during  the  period  in  question,  showing  a  gain  of  19% 
in  1911  over  the  figure  of  1907.  Coal  earnings  were  somewhat  higher  each  year  than  earnings  from 
the  transportation  of  merchandise,  due  to  a  more  profitable  rate.  Coal  earnings  show  a  net  decline 
during  the  period  of  nearly  2%,  and  earnings  from  merchandise  freight  a  gain  of  nearly  2%.  There 
was  in  each  case  a  steady  decline  in  the  rate  per  ton. 

The  Lackawanna,  while  doing  a  heavy  coal  business,  has  also  developed  during  the  decade  a 
good-sized  miscellaneous  business  and  a  large  passenger  traffic.  Following  are  some  of  the  more 
salient  passenger  statistics  of  the  Lackawanna  for  the  years  1907  to  1911  inclusive: 

Year  Passenger  Passenger  Rate  per  pas- 

density  earnings  senger  per  mile 

1907 611,446  $6,757,596  $.0143 

1908 609,386  6,449,032  .0137 

1909 604,611  6,825,430  .0138 

1910 615,436  7,290,943  .0145 

1911 626,800  7,696,800  .0150 

[  266  J 


The  number  of  passengers  carried  one  mile  per  mile  of  road  operated  was  2.5%  greater  in 
1911  than  in  1907.  Passenger  earnings  increased  19.3%  in  1911  over  the  low  figures  of  the  period, 
and  the  passenger  rate  nearly  10%.  The  passenger  business  of  the  company  represents  about  20% 
of  the  total  and  is  steadily  growing  in  importance. 

EARNINGS 

Few  roads  in  the  country  earn  as  much  per  mile  as  the  Delaware,  Lackawanna  &  Western. 
Following  are  the  gross  and  net  earnings  also  figured  on  a  per  mile  basis  for  the  years  1907  to  1911 
inclusive : 

Year  Average  miles  Gross  Per  mile  Net  Per  mile 

operated  earnings  earnings 

1907 770  $37,264,473  $48,395  $15,724,734  $20,421 

1908 770  32,898,495  42,725  14,274,841  18,538 

1909 815  34,815,011  42,718  16,069,501  19,718 

1910 815  36,052,932  44,236  15,429,484  18,932 

1911 815  36,586,563  44,890  14,267,911  17,506 

The  company's  earnings  in  1907  were  the  largest  of  any  year  in  its  history,  before  or  since  that 
time.  In  1908,  however,  all  sources  of  revenue  except  coal  showed  a  marked  decrease.  A  curtail- 
ment of  expense  took  place  amoimting  to  nearly  $3,000,000,  and  the  company's  operating  ratio  fell 
from  57.8%  to  56.6%. 

In  1909  came  a  revival  of  general  business  which  was  reflected  in  a  5.8%  increase  in  gross  earn- 
ings. Operating  expenses  were  held  to  the  level  of  the  1908  figures,  bringing  about  a  gain  in  net 
earnings  of  12.5%.  Still  better  earnings  were  shown  during  the  fiscal  year  of  1910.  The  3)4%  gain 
in  gross  earnings  was  more  than  ofl^set  by  an  increase  in  operating  expense  of  10%.  The  bulk  of 
this  increase  was  due  to  nearly  $750,000  additional  maintenance  charges,  and  over  $1,000,000  in 
transportation  costs.  The  operating  ratio  increased  from  53.8%  in  1909  to  57.2%  in  1910,  and  the 
ratio  of  transportation  costs  to  gross  earnings  increased  from  30.5%  to  32.7%. 

In  1911  gross  earnings  were  but  slightly  over  $500,000  greater  than  those  of  1910,  whereas  oper- 
ating expenses  increased  nearly  $1,700,000,  resultmg  in  a  loss  in  net  of  8%,  and  the  operating  ratio 
for  the  first  time  in  years  went  above  60%.  In  fact,  c6mparing  the  period  as  a  whole,  we  find  gross 
earnings  in  1911  to  be  nearly  2%  less  than  the  high  figures  of  1907,  and  1911  net  earnings  10.2%  less 
than  those  of  1907.  The  company's  earnings,  however,  are  extremely  high,  and,  as  will  be  seen  by  a 
glance  at  the  figures  above,  are  generally  very  stable.  It  is  true,  however,  that  the  prosperity  of  the 
road  depends  very  largely  upon  the  ability  of  the  management  to  maintain  satisfactory  relations 
with  its  operatives,  both  railroad  and  mining,  and  it  is  easy  to  see  that  any  prolonged  labor  difficulty, 
such  as  the  coal  strike  of  1902,  would  aflfect  the  company's  earnings  profoundly. 

MAINTENANCE 

In  the  case  of  the  Lackawanna  large  earnings  per  mile  have  meant  large  maintenance  charges 
per  mile.     Below  are  given  the  amounts  spent  for  upkeep  by  the  company  during  the  past  five  years : 

Year  Maintenance  Total  Per  mile 

Way  Equipment  maintenance 

1907 $4,974,887    $3,731,081  $8,705,968  $11,307 

1908 3,343,396     4,747,700  8,091,096  10,508 

1909 3,298,389     4,797,073  8,095,462  9,933 

1910 3,804,932     5,034,605  8,839,536  10,846 

1911 4,144,940     5,762,903  9,907,843  12,156 

[  267  ] 


The  Lackawanna's  average  traffic  density  of  over  4,800,000  is  a  very  high  figure  and  even  sur- 
passes the  Reading,  whose  average  for  the  same  period  was  4,700,000.  The  Lackawanna  spent  an 
average  of  $10,950  per  mile  as  against  the  Reading's  average  charge  for  upkeep  of  $11,540.  The 
Lehigh  Valley,  with  a  traffic  density  of  3,440,000,  spent  an  average  of  $6,527  for  the  period. 

ADDITIONS   AND   BETTERMENTS 

Since  June  30,  1907,  the  company  has  paid  out  of  income  for  "Renewals  and  Betterments  to 
Property"  a  total  amount  of  $12,477,520  as  follows: 

Year  Amount 

1907  (6  months)      $1,740,120 

1908 2,781,603 

1909 2,099,454 

1910 2,542,117 

1911 2,200,628 

1,113,598* 

Total  (4H  years) $12,477,520 

In  addition  it  has  a  fund  for  the  replacement  of  equipment  which  is  reported  since  1908  as  follows: 

Year  Receipts  Expenses  Balance 

1908  (Jan.  1) $63 

1908 $1,358,320    $1,266,549  91,771 

1909 1,485,982     1,377,114  108,867 

1910 1,560,963  2,051,983  491,020t 

1911 1,532,275  2,444,945  912,670t 

DIVIDENDS 

The  dividend  record  of  the  Lackawanna  is  one  of  the  best  in  railroad  history.     From  1885  to 

1904  the  company  paid  7%.     In  1904,  in  addition  to  the  7%  dividend,  10%  extra  was  paid,  and  from 

1905  up  to  the  present  time  a  regular  dividend  of  10%  has  always  been  paid,  together  with  10% 
extra  every  year. 

In  addition  to  the  above  cash  dividends,  a  special  cash  dividend  of  50%  was  declared  on  July  20, 
1909,  one-half  of  which  was  applicable  to  subscription  in  stock  of  the  Delaware,  Lackawanna  & 
Western  Coal  Company.  On  August  2,  1909,  a  stock  dividend  of  15%  was  paid,  and  on  December 
20,  1911,  a  dividend  of  35%  was  paid  in  stock  of  the  Lackawanna  Railroad  Company  of  New  Jersey. 

Over  and  above  these  annual  dividends  of  20%,  which  have  been  paid  since  1905,  the  following 
surplus  has  been  earned: 

Year  Surplus 

1905 $2,698,429 

1906 587,072 

1907 4,849,328 

1908 5,457,125 

1909 10,147,609t 

1910 4,693,184 

1911 3,603,242 

*  This  amount  was  charged  out  of  income  for  improvements,  prior  to  June  30,  1907,  but  was  expended  subsequent  to  that  date, 
t  Deficit.  I  This  item  includes  profit  from  sale  of  37,000  shares  of  Lehigh  Valley  stock,  $2,022,740. 

[    268    ] 


The  total  surplus  for  the  seven  years  is  $32,035,989,  or  an  average  of  over  $4,500,000.  The 
company's  Profit  and  Loss  Account  stood  on  its  balance  sheet  of  December  31,  1911,  at  $25,502,631, 
or  84%  of  its  capital  stock. 

STATISTICS 

Following  are  the  capitalization,  earnings  and  traffic  statistics  of  the  Delaware,  Lackawanna  & 
Western  Railroad  based  on  the  average  miles  operated  for  the  year  1900  and  for  the  years  1905  to 
1911  inclusive: 


[  269  ] 


THE   DELAWARE,   LACKAWANNA    &   WESTERN   RAILROAD 


Fiscal 

Capitiil 

Funded 

Rentals 

Gross 

Owned  bj 

x\et 

Average 

Extra 

year 

stock 

debt 

@  5% 

capital 

company 

capital 

miles 
operated 

tra^ck 

1900 

$33,982 

$3,978 

$ 

133,601 

$171,561 

$7,836 

$163,725 

771 

486 

1905 

34,026 

3,983 

133,213 

171,222 

20,491 

150,731 

770 

480 

1906 

34,026 

3,983 

33,992 

172,001 

23,625 

148,376 

770 

480 

1907 

34,026 

19 

34,238 

168,283 

23,713 

144,570 

770 

480 

1908 

34.026 



34,029 

168,055 

23,730 

144,325 

770 

480 

1909 

37,149 

393 

26,629 

164,171 

16,281 

147,890 

815 

480 

1910 

37,149 

392 

26,629 

164,170 

21,185 

142,985 

815 

480 

1911 

37,149 

392 

27,727 

165,268 

11,756 

153,512 

815 

481 

Fiscal 

Gross 

Maintenance 

Transportatic 

n         Net 

Other 

Total  net 

Fixed 

Surplus 

year 

operating 

and  genera 

operating 

income 

income 

charges 

available 

revenue 

Way        Equipment 
$3,996         $3,601 

expense 
$10,341 

revenue 

$2,389 

$8,101 

r  dividends 

1900 

$27,091 

$9,153 

$11,542 

$3,441 

1905 

41,494 

6,026 

3,730 

13,397 

18,341 

5,115 

23,456 

8,488 

14,968 

1906 

42,809 

6,413 

3,778 

14,354 

18,264 

5,843 

24,107 

9,330 

14,777 

1907 

48,395 

6,461 

4,846 

16,667 

20,421 

6,707 

27,128 

9,066 

18,062 

1908 

42,725 

4,342 

6,166 

13,679 

18,538 

7,579 

26,117 

8,613 

17,504 

1909 

42,718 

4,047 

5,886 

13,067 

19,718 

10,844* 

30,562 

8,378 

22,184 

1910 

44,236 

4,668 

6,178 

14,458 

18,932 

5,838 

24,770 

8,495 

16.275 

1911 

44,890 

5,085 

7,071 

15,228 

17,506 

6,140 

23,646 

9,128 

14.518 

Fiscal 

Dividends 

Other 

Surplus 

Operating 

Total 

Conducting 

Fixed            Net 

Gross 

Per  cent 

year 

charges  to 

expenses      maintenance 

transporta- 

charges       incom 

e       earnings 

earned 

income 

to  gross 

to  gross 

tion  to  gross 

to  gross        to  net 

to  gross 

on  capital 

earnings 

earnings 

earnings 

earnings       capita 

capital 

stock 

1900 

$2,379 

$1,132 

$70t 

65.84% 

27.7% 

38.1% 

29.0%          7.0%        15.8% 

10.4% 

1905 

6,805 

4,659 

3,504 

55.80 

23.6 

32.2 

20.3            15.5 

24.2 

44.0 

1906 

6,805 

7,209 

763 

56.12 

25.0 

31.1 

21.8            16.3 

24.9 

43.4 

1907 

6,805 

4,961 

6,296 

57.80 

23.4 

34.4 

18.7            18.7 

28.8 

53.1 

1908 

6,805 

3,613 

7,086 

56.61 

24.6 

32.0 

20.1            18.1 

25.4 

51.4 

1909 

7,155 

2,576 

2,453 

53.84 

23.3 

30.5 

19.6            20.6 

26.0 

59.7 

1910 

7,397 

3,119 

5,759 

57.20 

24.5 

32.7 

19.2            17.3 

27.0 

43.8 

1911 

7,307 

2.700 

4,421 

01.00 

27.1 

33.9 

20.3            15.4 

27.2 

39.1 

Fiscal    Train  mile         Maintenance  Conducting        Train  Rate  per  mile 

year       earnings       per  revenue  trans-     transporta-  mile 

(gross)  portation  mile  tion  per  earnings        Per  Per  ton 

revenue  (net)       passenger 

Way       Equipment   train  mile 


Freight  Train      Freight    Passenger 

density  load         to  all         freight 

revenue     traflSc  and 

tons  company 

cars 


1900 

$1.81 

$.266 

$.240 

$.683 

$.62 

$.0148 

$.0081 

2,445,032 

307 

73% 

28,293 

1905 

2.60 

.377 

.233 

.839 

1.15 

.0143 

.0078 

3,826,713 

401 

73 

24,977 

1906 

2.66 

.397 

.234 

.890 

1.14 

.0144 

.0077 

3,868,828 

465 

70 

27,738 

1907 

2.82 

.376 

.282 

.971 

1.19 

.0143 

.0076 

4,529,671 

490 

71 

28,696 

1908 

2.64 

.267 

.379 

.841 

1.15 

.0137 

.0079 

4,001,377 

484 

74 

28,477 

1909 

2.78 

.264 

.384 

.852 

1.28 

.0138 

.0078 

4,057,112 

520 

74 

28,804 

1910 

2.92 

.308 

.408 

.956 

1.25 

.0145 

.0076 

4,256,591 

567 

73 

29,605 

1911 

2.96 

.336 

.467 

1.007 

1.15 

.0150 

.0075 

4,332,035 

583 

73 

30,075 

The  mileage  directly  owned  is  unmon 

*  Includes  profit  of  sale  of  Lehigh  Valley  stock. 

[  270  ] 


BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Delaware,  Lacka- 
wanna &  Western  Railroad  System,  together  with  the  bases  upon  which 
they  have  sold  during  the  decade  ending  December  31,  1912: 


BANGOR   &  PORTLAND   RAILWAY 

First,  Second  and  Third  Mortgage  6s 

Dated:  First      6s,  January  1,  1880  Maturing:  First      6s,  January  1,  1930 

Second  6s,  January  1,  1882  Second  6s,  January  1,  1932 

Third    6s,  January  1,  1886  Third    6s,  January  1,  1936 

Interest  jjayable  January  1  and  July  1  at  90  West  Street,  New  York. 
Coupon  bonds  of  $1,000. 

Authorized:  First      6s,  $150,000                                                                             Outstanding:  First      6s,  $150,000 

Second  6s,    100,000  Second  6s,     100.000 

Third    6s,      70,000  Third    6s,       70,000 

Per  mile  7,442 

Security :  These  bonds  are  a  direct  obligation  of  the  Delaware,  Lackawanna  &  Western  Railroad  Company. 

They  are  secured  by  first,  second  and  third  mortgages  on  42.97  miles  of  the  company's  line, 
from  Portland  to  Nazareth,  Pa.,  38.37  miles,  and  from  Nazareth  Junction  to  Martin's  Creek, 
Pa.,  4.60  miles. 

The  Bangor  &  Portland  Railway  was  chartered  March  4,  1879,  and  was  opened  for  traffic 
December  28,  1885.  On  July  1,  1899,  this  company  consolidated  with  the  Nazareth  &  Lehigh  Rail- 
way Company,  under  the  name  of  the  former.  The  entire  capital  stock  of  the  new  company  was 
owned  by  the  Delaware,  Lackawanna  &  Western  Railroad  Company,  and  on  July  1,  1909,  the  Bangor 
&  Portland  Railway  Company  was  merged  into  the  Delaware,  Lackawanna  &  Western  Railroad 
Company  and  is  now  operated  as  the  Bangor  &  Portland  Branch. 

The  first  mortgage  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hamp- 
shire.   The  second  and  third  mortgage  bonds  are  considered  legal  in  New  Hampshire. 


MORRIS    &   ESSEX   RAILROAD 

First  Mortgage  7s 

Dated  July  1,  1864  Maturing  May  1,  1914 

Interest  payable  May  1  and  November  1  at  90  West  Street,  New  York. 

Coupon  bonds  of  $100,  $500  and  $1,000,  registerable  as  to  prmcipal  or  fully  registerable. 

Authorized  $5,000,000  Outstanding  $5,000,000 

Per  mile  .    .  46,730 

Security :  These  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Hoboken  to  Phillips- 

burg,  N.  J.,  84.58  miles,  and  from  Denville  to  Paterson,  N.  J.,  22.43  miles,  a  total  of  107.01  miles. 

The  bonds  are  ASSUMED  by  the  Delaware,  Lackawanna  &  Western  Railroad  Company. 

Equity:  This  issue  is  prior  in  lien  to  the  Morris  &  Essex  Consolidated  7s  of  1915;  also,  prior  in  lien  to 

the  Morris  &  Essex  First  Refunding  Sj/^s  of  2000,  a  sufficient  number  of  which  are  reserved  to 
retire  the  First  Mortgage  7s  of  1914. 

[  272  ] 


The  Morris  &  Essex  Railroad  Company  was  chartered  under  the  laws  of  the  State  of  New  Jersey 
on  January  29,  1835.  On  December  31,  1868,  the  road  was  leased  in  perpetuity  to  the  Delaware, 
Lackawanna  &  Western  Railroad,  which  assumed  all  the  fixed  obligations  of  the  Morris  &  Essex 
Railroad  Company  and  agreed  to  pay  7%  yearly  on  the  capital  stock. 

These  bonds  sold  in  1902  on  a  3.15  to  3.65  basis 


1903 

3.24 

3.75 

1904 

3.45 

3.70 

1905 

3.20 

3.90 

1906 

3.35 

4.125 

1907 

4.00 

5.40 

1908 

3.65 

4.27 

1909 

3.75 

4.375 

1910 

3.90 

4.625 

1911 

3.90 

4.55 

1912 

3.10 

5.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  Connecticut  and  Rhode  Island. 


MORRIS    &   ESSEX   RAILROAD 
First  Consolidated  Mortgage  7s 

Dated  January  15,  1875  Maturing  June  1,  1915 

Interest  payable  June  1  and  December  1  at  90  West  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $1,000. 

Authorized  $25,000,000  Outstanding  $11,677,000 

Per  mile  .    .  98,126 

(Closed  mortgage) 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  12  miles  of  road  from  Paterson  to  West  End 

Tunnel,  N.  J.,  and  upon  lands,  buildings,  equipment  and  future  acquisitions.  They  are  secured 
by  a  second  mortgage  on  107.01  miles  of  road  covered  by  the  Morris  &  Essex  First  7s.  They 
are  also  secured  by  a  first  mortgage  on  100.97  miles  of  second  track. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Delaware, 
Lackawanna  &  Western  Railroad  Company  by  endorsement. 

Equity:  This  issue  is  prior  in  hen  to  the  Morris  &  Essex  First  Refunding  3}^^  of  2000,  a  sufficient  num- 

ber of  which  have  been  reserved  to  retire  this  issue. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

For  history  of  the  Morris  &  Essex  Railroad  Company,  see  above. 

[  273  ] 


These  bonds  sold  in  1902  on  a  3.125  to  3.45  basis 


1903 

3.45 

3.85 

1904 

3.38 

3.80 

1905 

3.25 

3.80 

1906 

3.47 

4.15 

1907 

3.88 

3.88 

1908 

3.65 

4.15 

1909 

3.70 

4.35 

1910 

3.88 

4.45 

1911 

3.80 

4.38 

1912 

3.75 

5.05 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Connecticut,  New  Hampshire  and 
Rhode  Island. 


MORRIS   &  ESSEX  RAILROAD 
First  Refunding  Mortgage  3j^s 

Dated  December  1,  1900  Maturing  December  1,  2000 

Interest  payable  June  1  and  December  1  at  90  West  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $35,000,000  Outstanding  $16,800,000 

Per  mile  .    .  141,175 

Provisions  of      Of  the  amount  authorized,  $18,200,000  are  reserved  for  construction,  equipment,  etc.,  and  for 
issue:  the  retirement  of  prior  liens,  and  $16,800,000  are  in  the  hands  of  the  public  as  above. 

Security :  These  bonds  are  a  direct  obhgation  of  the  company.     They  are  secured  by  a  second  mortgage 

on  the  12  miles  from  Paterson  to  West  End  Tunnel,  N.  J.,  covered  by  the  Morris  &  Essex 
First  Consolidated  7s  of  1915;  and  by  a  third  mortgage  on  the  107.01  miles  covered  by  the 
Morris  &  Essex  First  7s  of  1914.  They  are  also  secured  by  mortgages  on  lands,  terminals, 
buildings,  docks,  tunnels,  etc.,  and  on  future  acquisitions. 

The  above  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Dela- 
ware, Lackawanna  &  Western  Railroad  Company  by  endorsement. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

For  the  history  of  the  Morris  &  Essex  Railroad  Company,  see  page  273. 

These  bonds  sold  in  1909  on  a  3.65  to  3.75  basis 

1910  3.85  (bid) 

1911  3.85 

1912  3.90 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Connecticut  and 
Rhode  Island. 


[  274 


NEW  YORK,   LACKAWANNA   &  WESTERN  RAILWAY 
First  Mortgage  6s 

Dated  December  31,  1880  Maturing  January  1,  1921 

Interest  payable  January  1  and  Jidy  1  at  90  West  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $12,000,000  Outstanding  $12,000,000 

Per  mile  .    .  55,960 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  214.44  miles  of  the  company's  line,  including 

the  207.14  miles  from  Binghamton  to  International  Bridge,  New  York,  the  Buffalo  City  Branch 
and  the  Cayuga  Extension,  and  upon  213  miles  of  second  track.  They  are  also  secured  by 
mortgages  on  terminals  at  Buffalo  and  on  buildings,  equipment,  etc.,  and  on  future  acquisitions. 

These  bonds  are  ASSUMED  by  the  Delaware,  Lackawanna  &  Western  Railroad  Company. 

Equity:  This  issue  is  prior  in  lien  to  the  New  York,  Lackawanna  &  Western  Construction  5s  of  1923 

and  to  the  Terminal  &  Improvement  4s  of  1923. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  New  York,  Lackawanna  &  Western  Railway  Company  was  chartered  under  the  laws  of 
the  State  of  New  York  on  August  26,  1880,  and  was  open  for  traffic  in  September,  1882.  On  October 
2,  1882,  the  road  was  leased  in  perpetuity  to  the  Delaware,  Lackawanna  &  Western,  which  assumed 
its  fixed  obligations  and  agreed  to  pay  5%  per  annum  on  the  outstanding  capital  stock. 

These  bonds  sold  in  1902  on  a  3.35  to  3.625  basis 


1903 

3.60 

3.90 

1904 

3.63 

3.85 

1905 

3.50 

3.70 

1906 

3.70 

4.05 

1907 

3.90 

4.55 

1908 

3.57 

4.30 

1909 

3.80 

4.10 

1910 

3.90 

4.50 

1911 

4.00 

4.30 

1912 

4.10 

4.60 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts, Rhode  Island  and  Connecticut. 


[  275  ] 


NEW  YORK,   LACKAWANNA   &  WESTERN   RAILWAY 
Construction  Mortgage  5s 


Dated  August  1,  1883 

Interest  payable  February  1  and  August  1  at ! 


Maturing  August  1,  1923 
West  Street,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $5,000,000 
Security : 


Outstanding   $5,000,000 
Per  mile  .    .  23,320 


Equity : 


Trustee: 


These  bonds  are  a  direct  obligation  of  the  company.  They  are  secured  by  a  second  mortgage 
on  the  214.44i  miles  of  road  which  are  covered  by  the  New  York,  Lackawanna  &  Western  First 
Mortgage  6s  of  1921. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Delaware, 
Lackawanna  &  Western  Railroad  Company  by  endorsement. 

This  issue  is  prior  in  lien  to  the  New  York,  Lackawanna  &  Western  Terminal  &  Improvement 
4s  of  1923. 

Farmers'  Loan  &  Trust  Company,  New  York. 


For  the  history  of  the  New  York,  Lackawanna  &  Western  Railway  Company,  see  page  275. 


bonds  sold  in  1902  on  a  3.75  to  3.95  basis 

1903 

3.90 

4.35 

1904 

3.85 

4.15 

1905 

3.85 

4.05 

1906 

3.80 

4.30 

1907 

4.00 

4.85 

1908 

3.95 

4.22 

1909 

3.80 

4.10 

1910 

3.95 

4.38 

1911 

4.20 

4.30 

1912 

4.12 

4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


[  276 


NEW  YORK,  LACKAWANNA   &  WESTERN   RAILWAY 

Terminal  &  Improvement  Mortgage  4s 

Dated  May  1,  1890  Maturing  May  1,  1923 

Interest  payable  May  1  and  November  1  at  90  West  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $5,000,000  Outstanding  $5,000,000 

Per  mile  .    .  23,320 

Security:  This  issue  is  a  direct  obhgation  of  the  company.     It  is  secured  by  a  third  mortgage  on  the 

214.44  miles  of  the  company's  Une  covered  by  the  First  Mortgage  6s  of  1921  and  by  the  second 
mortgage  of  the  Construction  5s  of  1923. 

The  above  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Delaware, 
Lackawanna  &  Western  Railroad  Company  by  endorsement. 

Trustee :  Farmers'  Loan  &  Trust  Company. 

For  the  history  of  the  New  York,  Lackawanna  &  Western  Railroad  Company,  see  page  275. 


The  above  bonds  sold  in  1902  on  a  3.62  to  3.85  basis 

1903 

3.80 

4.00 

1904 

3.60 

4.00 

1905 

3.63 

3.75 

1906 

3.80 

3.85 

1907 

4.25 

5.30 

1908 

3.85 

4.25 

1909 

3.95 

4.05 

1910 

3.90 

4.22 

1911 

4.05 

4.25 

1912 

4.22 

4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 

OSWEGO    &   SYRACUSE   RAILROAD 

Construction  Mortgage  5s 

Dated  May  1,  1883  Maturing  May  1,  1923 

Interest  payable  May  1  and  November  1  at  90  West  Street,  New  York. 

Coupon  bonds  of  $1,000. 
Authorized  $1,000,000  Outstanding  $668,000 

Per  mile  .    .       19,085 

Security:  The  above  bonds  are  a  direct  obligation  of  the  company,  and  are  secured  by  a  second  mortgage 

on  35  miles  of  the  company's  road  from  Oswego  to  Syracuse,  N.  Y.,  covered  by  the  first  mortgage 
of  the  Oswego  &  Syracuse  Railroad  First  7s  of  1907,  which  were  purchased  by  the  Delaware, 
Lackawanna  &  Western  Railroad  Company  and  held  as  a  treasury  asset. 
[  277  ] 


These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Delaware. 
Lackawanna  &  Western  Railroad  Company  by  endorsement. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Oswego  &  Syracuse  Railroad  was  chartered  under  the  laws  of  the  State  of  New  York  in 
1839,  and  its  property  was  leased  from  1869  to  the  extent  of  its  charter,  to  the  Delaware,  Lackawanna 
&  Western  Railroad  Company,  which  assumed  all  its  funded  obligations  as  of  March  1,  1869,  and 
guaranteed  9%  on  the  outstanding  capital  stock. 

These  bonds  sold  in  1906  on  a  3.80  basis 

1909  4.15  (bid) 

1910  4.35  (bid) 

1911  4.35  (bid) 
December,  1912  4.87  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


WARREN   RAILROAD 

First  Refunding  Mortgage  sHs 

Dated  July  17,  1900  Maturing  August  1,  2000 

Interest  payable  February  1  and  August  1. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Authorized  $2,000,000  Outstanding  $1,394,000 

Security:  The  above  bonds  are  secured  by  a  mortgage  on  the  line  of  the  Warren  Railroad,  extending 

from  the  centre  of  the  bridge  across  the  Delaware  River  at  the  point  of  connection  with  the 
Delaware,  Lackawanna  &  Western  Railroad,  to  its  connection  with  the  Central  Railroad  of 
New  Jersey  at  a  Junction  in  Hunterton  County,  18.82  miles,  together  with  lands,  buildings 
and  franchises  now  owned  or  hereafter  acquired  by  the  company. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Delaware, 
Lackawanna  &  Western  Railroad  Company  by  indorsement. 

Trustee:  The  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Warren  Railroad  was  chartered  February  12,  1851.  The  road  was  opened  for  traffic  June, 
1856.  On  October  1,  1857  the  property  of  the  Warren  Railroad  was  leased  in  perpetuity  to  the 
Delaware,  Lackawanna  &  W^estern  Railroad,  at  an  annual  rental  of  7%  on  its  stock  and  interest  on 
its  bonds. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Connecticut  and 
Rhode  Island. 


[  278 


GREAT  NORTHERN  RAILWAY  COMPANY 


GREAT  NORTHERN  RAILWAY  COMPANY 


HISTORY 

The  Great  Northern  Railway  Company  was  chartered  September  18,  1889,  as  the  successor 
to  the  ^NlinneapoHs  &  St.  Cloud  Railway,  which  had  been  chartered  by  the  Legislative  Assembly 
of  the  Territory  of  INIinnesota  on  March  1,  1856. 

On  February  1,  1890,  the  property  of  the  St.  Paul,  Minneapolis  &  ^Manitoba  Railway  was  form- 
ally leased  to  the  Great  Northern  for  999  years,  the  lessor  guaranteeing  dividends  at  6%  per  annum 
on  the  St.  Paul  stock,  and  payment  of  both  principal  and  interest  on  its  bonds.  In  October,  1898, 
and  subsequently,  the  Great  Northern  acquired  98%  of  the  capital  stock  of  the  St.  Paul  Company 
by  issuing  its  own  stock  in  exchange  therefor  at  the  rate  of  $125  for  $100. 

The  Great  Northern  Railway  Company  purchased  the  entire  capital  stock  of  the  Seattle  & 
Montana  Railway  Company  in  1898  and  began  operating  the  road  on  August  1  of  that  year.  The 
Park  Rapids  &  Leech  Lake  Railway  was  leased  May  1,  1899,  the  lease  to  run  from  year  to  year. 
All  the  stocks  and  securities  of  the  company  were  acquired  by  the  Great  Northern.  In  1902  the 
entire  capital  stock  of  the  Eastern  Railway  of  INIinnesota  was  purchased,  and  the  road  was  leased  for 
99  years,  from  May  1,  1902,  at  a  rental  equivalent  to  the  interest  on  its  bonds  and  dividends  of  6% 
per  annum  on  its  capital  stock.  The  lines  of  the  Duluth,  Superior  &  Western  Terminal  Company 
were  leased  for  99  years,  from  May  1,  1903,  at  a  rental  of  $20,000  a  year,  and  at  the  same  time  an 
agreement  was  made  with  the  Allouez  Bay  Dock  Company,  which  operates  the  ore  docks  of  the 
former,  by  which  Great  Northern  ore  trains  were  permitted  to  run  to  the  docks.  The  Minnesota  & 
Great  Northern  Railway  was  taken  over  by  the  Great  Northern  Railway  in  November,  1904,  this 
agreement  being  terminable  on  three  months'  notice  by  either  party. 

On  December  11,  1906,  the  Great  Northern  Railway  was  authorized,  subject  to  the  approval  of 
its  stockholders,  to  increase  its  capital  stock  by  issuing  600,000  shares  of  $100  par  value  for  the  fol- 
lowing purposes,  —  to  provide  additional  terminals  and  other  facilities  for  existing  lines,  and  to 
acquire  the  stocks  or  bonds,  or  both,  of  the  following  companies : 

Dakota  &  Great  Northern  Railway 

Montana  &  Great  Northern  Railway 

Billings  &  Northern  Railroad 

Washington  &  Great  Northern  Railway 

Portland  &  Seattle  Railway 

Vancouver,  Victoria  &  Eastern  Railway  &  Navigation  Company 

Brandon,  Saskatchewan  &  Hudson's  Bay  Railway 

IVIidland  Railway,  Manitoba 

Under  the  authorization  given  at  the  annual  stockholders'  meeting  held  October  10,  1907, 
the  Great  Northern  purchased,  and  now  holds  title  to,  the  following  lines  of  railway,  together  with 
their  equipment,  securities  and  all  other  property  and  assets : 


St.  Paul,  Minneapolis  &  Manitoba  Railway 
Eastern  Railway  of  Minnesota 
WUlmar  &  Sioux  Falls  Railway 
[  281  ] 


Park  Rapids  &  Leech  Lake  Railway 
Duluth,  Watertown  &  Pacific  Railway 
Montana  Central  Railway 
Minnesota  &  Great  Northern  Railway 
Minneapolis  Union  Railway 
Spokane  Falls  &  Northern  Railway 
Columbia  &  Red  Mountain  Railway 
Washington  &  Great  Northern  Railway 
Seattle  &  Montana  Railroad 
Dakota  &  Great  Northern  Railway 
Montana  &  Great  Northern  Railway 
Billings  &  Northern  Railroad 

Payment  was  made  by  assuming  the  bonds  of  the  above  companies,  writing  ofif  the  amounts 
advanced  for  construction  purposes,  discharging  the  current  liabilities,  and  upon  payment  of  other 
considerations.  These  properties  were  carried  on  the  books  of  the  selling  companies  at  nearly 
$250,000,000. 

Li  1901  control  of  the  Chicago,  Burlington  &  Quincy  Railroad  was  purchased  jointly  with  the 
Northern  Pacific  Railway.  It  was  at  that  time  that  an  attempt  was  made  to  merge  all  three  through 
the  formation  of  the  Northern  Securities  Company  as  a  holding  organization.  This  holding  company, 
it  will  be  remembered,  was  declared  illegal,  and  dissolved.  At  the  present  time  the  Great  Northern 
owns,  jointly  with  the  Northern  Pacific,  practically  the  entire  capital  stock  of  the  Burhngton.  Its 
half  consists  of  1,076,135  shares,  having  a  book  value  of  $109,114,809.  This  stock,  together  with  a 
like  amount  held  by  the  Northern  Pacific  Railway  Company,  has  been  pledged  under  the  Northern 
Pacific-Great  Northern-Chicago,  Burlington  &  Quincy  4%  Collateral  Joint  Bonds,  amounting  to 
$215,227,000,  and  is  guaranteed  as  to  principal  and  interest  by  both. 

The  following  companies  are  owned  by  the  Great  Northern  Railway  Company: 

Brandon,  Saskatchewan  &  Hudson's  Bay  Railway 

Manitoba  &  Great  Northern  Railway 

Crow's  Nest  Southern  Railway 

Nelson  &  Fort  Vancouver  Railway 

Victoria  &  Eastern  Railway  &  Navigation  Company 

Nelson  &  Fort  Shepard  Railway 

New  Westminster  Southern  Railway 

Red  Mountain  Railway 

(The  above  are  located  in  the  Dominion  of  Canada) 

Duluth  Terminal  Railway 
Minneapolis  Western  Railway 

These  roads  have  no  bonds  outstanding,  and  their  operations  are  reported  in  the  earnings  of 
the  parent  company. 

One  important  piece  of  construction,  in  which  the  Great  Northern  is  interested  jointly  with  the 
Northern  Pacific  Railway,  is  the  building  of  the  Spokane,  Portland  &  Seattle  Railway,  for  which 
both  have  made  large  advances  in  recent  years.  In  settlement  for  these  advances,  the  Spokane, 
Portland  &  Seattle  Railway  Company  has  delivered  to,  and  in  the  names  of  both,  jointly,  but  for 
equal  division  between  them,  a  certificate  calling  for  $40,000,000  of  its  capital  stock,  also  $61,000,000 
of  its  First  Mortgage  4%  Fifty-Year  Gold  Bonds  dated  March  1,  1911,  the  payment  of  which,  both 
principal  and  interest,  has  been  guaranteed  by  the  two  companies.  $30,500,000  of  these  bonds  are 
now  in  the  treasury  of  the  Great  Northern  Company. 

[  282  ] 


ORE  PROPERTIES 

Among  the  most  important  assets  of  the  Great  Northern  at  one  time  were  its  holdings  of  large 
supphes  of  ore  in  northeastern  Minnesota,  comprising  over  65,000  acres  of  land.  These  had  been 
turned  over  to  the  Lake  Superior  Company,  Ltd.,  a  corporation  closely  affiliated  with  the  Great 
Northern  Railway.  Li  December,  1906,  the  Lake  Superior  Company,  Ltd.  transferred  all  its  prop- 
erty to  Louis  W.  Hill,  James  N.  Hill,  Walter  J.  Hill,  and  E.  T.  Nichols,  as  the  Trustees  of  the  Great 
Northern  Iron  Ore  Properties.  Two  months  previous  to  this  date  it  was  announced  that  the  owners 
of  the  $150,000,000  share  capital  of  the  Great  Northern  Railway  Company,  on  record  December  6, 
1906,  would  receive  "certificates  of  beneficial  interest  in  the  ore  properties"  share  for  share.  On 
the  following  day  (December  7)  the  transfer  of  the  above-mentioned  properties  was  made,  and  in 
January,  1907,  the  trustees  leased  a  portion  of  the  lands,  comprising  some  40,000  acres,  to  the  Great 
Western  Mining  Company,  a  subsidiary  of  the  United  States  Steel  Company.  This  lease  was  to  run 
indefinitely  unless  terminated  at  the  option  of  the  Steel  Corporation,  January  1,  1915,  on  two  years' 
notice.  During  the  year  1912  the  Steel  Corporation  notified  the  trustees  that  it  desired  to  terminate 
the  lease  in  1915.  It  has  been  stated  that  the  trustees  will  enter  the  market  as  independent  pro- 
ducers, and  will  grant  no  more  leases  to  other  interests. 


LAND  DEPARTMENT 

Like  most  Western  railroads  built  in  the  development  period  of  the  West,  the  Great  Northern 
was  assisted  by  extensive  land  grants  from  the  government.  In  the  company's  report  for  the  fiscal 
year  ending  June  30,  1912,  the  amount  of  land  which  remained  unsold  in  the  St.  Paul,  Minneapolis 
&  Manitoba  laud  grant  was  797,011  acres.  The  original  grant  to  the  railroad  was  3,848,000  acres. 
There  were  also  18,009  acres  of  land  still  remaining  in  the  MinneapoUs  &  St.  Cloud  land  grant,  which 
was  originally  over  425,000  acres. 

PROPERTY 

The  statement  of  the  Great  Northern  Railway  and  proprietary  companies  for  the  fiscal  year 
ending  June  30,  1912,  showed  a  total  of  7,482.36  miles  of  main  track  in  the  system.  Of  this  amount, 
6,553.38  miles  were  owned  in  fee  (17.66  miles  of  which  have  been  leased  to  other  companies),  622.50 
miles  were  owned  by  controlled  companies,  and  324.14  miles  were  being  operated  under  contracts 
and  trackage  rights.    The  average  miles  under  operation  by  the  system  were  7,369. 

The  lines  of  the  Great  Northern  connect  Sioux  City  and  ISIinneapolis,  the  terminals  of  the  Chi- 
cago, Burlington  &  Quincy,  and  Duluth,  the  great  port  of  Lake  Superior,  on  the  east,  with  the  Pacific 
ports,  Vancouver,  Seattle,  Tacoma  and  Portland,  on  the  west.  Its  branches  form  a  network  of 
roads  in  Minnesota  and  North  Dakota,  and  extend  up  into  Canada,  tapping  the  territories  of  Mani- 
toba, Alberta  and  British  Columbia.  Its  mileage  traverses  the  States  of  Minnesota,  North  Dakota, 
Montana,  Idaho  and  Washington.  The  population  of  these  States  in  1890  was  2,050,300;  in  1900, 
2,993,780,  and  in  1910,  4,496,400. 

CAPITALIZATION 

The  capital  account  of  the  Great  Northern  Railway  Company  and  the  independently  operated 
lines  of  the  MinneapoUs  Western  Railway  and  the  Duluth  Terminal  Railway,  all  of  which  comprise 
the  Great  Northern  Railway  System,  stood  as  follows  on  the  condensed  balance  sheet  for  the  fiscal 
year  ending  Jime  30,  1911: 

[  283  ] 


Capital  stock $209,990,750 

Funded  debt      143,757,909 


Nominal  capital $353,784,659 

Rentals  capitalized  @  5% 15,089,000 


Gross  capitalization      $368,837,659 

Securities  owned 60,264,516 


Net  capitalization $308,573,143 

Net  capital  per  mile  operated $41,874 

Average  miles  operated 7,369 

Net  income  to  net  capital 10.5% 

Fixed  charges  to  net  income 33.0% 

Margin  of  safety 67.0% 

The  total  stocks  and  bonds  of  the  Great  Northern,  as  shown  above,  amounted  to  over 
$353,000,000.  On  the  basis  of  7,177.57  miles  actually  owned  by  the  Great  Northern  Railway  and  con- 
trolled companies,  this  gives  a  capitalization  per  mile  of  road  of  $49,285.  The  Northern  Pacific, 
with  6,297  miles  owned  in  fee,  has  a  nominal  capitalization  of  $69,773  per  mile,  while  the  Chicago, 
Burlington  &  Quincy  shows  $36,400  per  mile  for  the  8,808  miles  directly  owned. 

There  have  been  no  increases  in  the  capital  stock  of  the  company  since  May  1,  1908,  when 
600,000  shares  were  issued  under  the  resolution  adopted  by  the  board  of  directors  December  11,  1906. 

As  of  May  1,  1911,  the  company  executed  and  delivered  to  the  Bankers  Trust  Company  as 
Trustee,  its  mortgage  to  secure  an  issue  of  not  to  exceed  $600,000,000  First  &  Refunding  Mortgage 
Gold  Bonds  maturing  July  1,  1961.  Under  the  terms  of  this  mortgage  all  prior  mortgages  become 
closed  and  no  additional  bonds  may  be  issued  thereunder.  Of  the  $600,000,000  face  value  of  First 
&  Refunding  Mortgage  Bonds  provided  for,  $332,162,000  have  been  reserved  to  refund  the  prior 
mortgage  bonds  of  the  company  and  the  Northern  Pacific-Great  Northern-Chicago,  Burlington  & 
Quincy  Collateral  4%  Joint  Bonds,  $100,000,000  are  reserved  to  be  issued  at  the  rate  of  not  exceed- 
ing $3,000,000  per  annum  for  the  construction  or  acquisition  of  additional  railways  and  equipment; 
$92,838,000  are  reserved  to  cover  the  cost  of  acquisition,  after  January  1, 1912,  of  the  bonds  and  stocks 
of  other  companies;  $30,000,000  are  reserved  to  cover  the  cost  of  property  acquired  after  May  1, 
1911,  and  $45,000,000  were  issued  as  4J4%  bonds  upon  the  execution  and  delivery  of  the  mortgage. 
$35,000,000  of  these  were  sold  at  that  time. 

It  is  interesting  to  compare  the  increase  in  capital  with  the  increase  in  earnings  since  1900. 
It  will  be  seen  by  the  following  table  that  while  the  capitalization  of  the  system  increased  81%,  its 
gross  earnings  increased  over  113%: 

Total  capital  Gross  earnings 

$195,636,397        $28,910,789 
353,748,659  66,197,819 


1900  . 
1911  . 

Capital  stock 

$98,882,700 

209,990,750 

Funded  debt 

$96,753,697 
143,757,909 

Per  cent  increase  .    .    .    . 

$158,112,262        $37,287,030 

81%  129% 


It  will  be  noted  that  the  net  capitalization  of  the  Great  Northern  System  in  1912  was  $41,874 
per  mile  of  road  operated.  On  this  net  capital  the  system  earned  10.5%.  This  compares  with  8.7% 
earned  in  1911,  the  lowest  figure  reported  in  ten  years,  with  the  single  exception  of  1908,  when  the 
company  reported  a  net  income  to  net  capital  of  8.2%.  The  Northern  Pacific,  with  a  net  capital  per 
mile  of  $66,933,  earned  a  net  income  equivalent  to  7.6%  on  that  amount,  while  the  Chicago,  Burling- 
ton &  Quincy  reported  net  earnings  of  9.7%  on  $32,136  net  capital  per  mile. 

[284] 


Train 

Freight 

Average  rate 

earnmgs 

per  ton 

tons 

per  mile 

548 

$41,270,191 

$.0077 

509 

40,311,420 

.0078 

502 

39,464,810 

.0081 

518 

46,675,733 

.0082 

524 

43,379,174 

.0081 

601 

47,877,369 

.0077 

During  the  five  years  ending  1912  the  average  net  income  to  net  capital  of  the  Great  Northern 
was  9.2%  as  compared  with  9.0%  for  the  Chicago,  Burlington  &  Quincy  and  7.9%  for  the  Northern 
Pacific. 


CHARACTER   OF  TRAFFIC 

The  Great  Northern  gives  no  report  of  the  character  of  its  tonnage.  It  is  a  well-known  fact, 
however,  that  the  Pacific  Extension  developed  a  big  lumber  traffic  eastbound,  while  westbound 
tonnage  has  been  stimulated  by  Asiatic  trade  through  the  purchase  of  a  steamship  line  to  the  Orient. 
The  road  also  reaches  the  heart  of  the  grain  belt  of  the  Northwest.  Another  important  item  of  traffic 
is  derived  from  the  iron  ore  properties  of  the  Lake  Superior  region.  This  always  proves  a  mainstay 
when  other  companies  are  suffering  from  crop  shortages. 

Following  are  some  of  the  more  important  traffic  statistics  of  the  Great  Northern  for  the  years 
1907  to  1912  inclusive: 

Year  Freight 

density 

1907 897,719 

1908 783,127 

1909 711,222 

1910 808,957 

1911 739,576 

1912 845,123 

It  will  be  seen  that  the  freight  density  — •  the  number  of  tons  carried  one  mile  per  mile  of  road 
operated  —  has  never  approached  the  high  figures  of  1907,  although  the  generally  higher  rates 
which  have  prevailed  since  1909  have  kept  freight  earnings  higher  than  at  that  time. 

The  opera tmg  efficiency  of  the  Great  Northern  has  been  steadily  improving  since  1908,  as  is 
evidenced  by  the  average  number  of  revenue  tons  per  train  per  mile.  Ten  years  ago  the  Great 
Northern  reported  an  average  train  load  of  447  tons.  In  1912  this  figure  had  increased  nearly 
35%  to  601  tons,  and  has  fairly  outstripped  the  Northern  Pacific  and  the  Chicago,  Burlington  & 
Quincy,  which  reported  511  and  438  tons  respectively  for  the  fiscal  year  ending  1912. 

The  development  of  passenger  traffic  has  been  more  than  satisfactory.  Measured  by  gross  earn- 
ings this  business  represented  in  1912  over  20%  of  the  entire  traffic.  Since  1902  the  passenger 
density  —  the  number  of  passengers  carried  one  mile  per  mile  of  road  operated  —  has  increased  36%, 
while  earnings  from  this  source  have  increased  over  104%,  as  will  be  seen  by  the  following  table: 

Year  Passenger  Passenger  Average  rate 

density  earnings  per  passenger 

per  mile 

1902 54,547  $6,662,173  $.0233 

1907 74,655  11,048,927  .0237 

1908 74,765  11,189,533  .0227 

1909 72,032  10,977,948  .0224 

1910 92,497*  14,311,800  .0220 

1911 81,521  13,422,057  .0227 

1912 74,344  13,623,009  .0248 

*  Due  to  heavy  traffic,  caused  by  the  Alaska- Yukon  Pacific  Exposition  at  Seattle. 


[  285  ] 


EARNINGS 

The  gross  and  net  earnings  of  the  Great  Northern  System,  both  actual  and  per  mile,  are  given 
below  for  the  six  years  ending  1912.  In  1907  gross  earnings,  as  well  as  net  earnings,  were  the  largest 
the  company  had  ever  reported. 

Year  Average  Gross  Per  mile  Net  Per  mile 

miles  earnings  earnings 

operated 

1907 5,982  $55,144,402  $9,218  $22,581,626  $3,775 

1908 6,594  54,429,632  8,254  18,271,577  2,771 

1909 6,808  53,687,444  7,886  21,133,957  3,104 

1910 7,020  64,465,369  9,183  25,187,274  3,587 

1911 7,244  61,257,632  8,455  23,657,241  3,265 

1912 7,369  66,197,819  8,983  28,535,273  3,872 

Per  cent  increase  in  gross  for  period 20.0% 

Per  cent  increase  in  net  for  period      26.4% 

In  1908  gross  earnings  fell  3%  and  net  earnings  24%.  The  cost  of  conducting  transportation  was 
curtailed  to  parallel  the  decline  in  gross  earnings,  but  maintenance  charges  increased  over  $4,300,000. 
This  caused  an  increase  in  total  operating  expenses  of  $3,600,000,  and  the  operating  ratio  rose  from 
59.05%  in  1907  to  66.43%  in  1908.  A  still  further  reduction  in  gross  earnings  in  1909  was  more  than 
offset  by  a  reduction  of  nearly  10%,  in  operating  expenses,  resulting  in  a  substantial  gain  in  net  earniags. 

Improved  business  conditions,  which  were  reflected  in  the  company's  earnings  in  February, 
1909,  continued  through  the  entire  year,  bringing  about  in  1910  the  largest  gross  and  net  earnings  for 
one  year  ever  reported  by  the  company  up  to  that  time.  Both  increased  nearly  20%.  The  earn- 
ings for  1911  were  affected  by  the  light  grain  crops  in  the  fall  of  1910.  The  nominal  set  back  of 
that  year  was  more  than  offset  by  a  gain  in  gross  in  the  fiscal  year  of  1912,  of  nearly  $5,000,000 
due  to  the  large  increase  of  product  of  agriculture  and  mines  carried.  As  a  result,  a  new  high  record 
for  gross  earnings  was  made  in  1912.  Almost  all  this  gain  in  gross  was  saved  for  net  earnings, 
the  company's  operating  ratio  falling  from  61.38%  in  1911  to  56.89%  in  1912. 

MAINTENANCE 

From  1900  to  1906  the  Great  Northern  showed  an  operating  ratio  of  about  50%,  an  exception- 
ally low  figure  in  comparison  with  other  roads  of  its  class.  This  was  evidently  due  to  the  fact  that 
maintenance  charges  were  being  kept  down.  In  1907  and  1908  this  policy  underwent  a  radical  change, 
and  whereas  in  1905  oiJy  $973  per  mile  was  spent  for  maintenance  of  way,  in  1910  $1,077  was  thus 
expended  and  $1,251  in  1912.  Charges  for  equipment  rose  from  $655  per  mile  in  1905,  to  $1,071  in 
1910  and  $1,065  in  1912,  and  it  is  significant  that  the  average  operating  ratio  since  1907  has  been  in 
the  neighborhood  of  61%,  a  more  normal  figure. 

Following  are  the  amounts  which  the  Great  Northern  has  spent  for  maintenance,  also  figured  on 
a  per  mile  basis,  for  the  years  1906  to  1912  inclusive: 

Year  Maintenance  of  Total  Per  Per  cent  to 

Way  Equipment  maintenance  mile        gross  earnings 

1906 $6,453,240  $4,820,649  $11,273,889  $1,908  22.0% 

1907 8,024,889  5,622,513  13,647,402  2,280  24.8 

1908 10,030,877  7,917,388  17,948,265  2,722  33.0 

1909 9,797,370  6,173,846  15,971,216  2,345  29.7 

1910 11,773,314  7,520,634  19,293,948  2,748  29.9 

1911 9,654,776  7,681,270  17,336,046  2,393  28.3 

1912 9,220,286  7,854,687  17,074,973  2,316  25.8 

[  286  ] 


ADDITIONS   AND    BETTERMENTS 

Considerable  sums  have  been  expended  in  recent  years  for  additions  and  betterments.  On  its 
balance  sheet  of  June  30,  1912,  we  find  the  cost  of  additions  and  improvements  made  to  the  property 
of  the  Great  Northern  Railway  Company  and  paid  for  from  the  "Fimd  for  Permanent  Improvements 
and  Betterments"  was  $27,510,280.  The  annual  reports  of  the  company  since  1908  show  the 
amounts  thus  expended : 

Year  Additions  Betterments  Total 

1908 $2,265,354  $2,174,586  $4,439,940 

1909 1,744,046  2,251,893  3,995,939 

1910 2,350,499  2,523,985  4,874,484 

1911 2,239,780  4,164,257  6,404,037 

1912 1,300,262  1,209,464  2,509,726 

$9,899,941  $12,324,185  $22,224,126 

The  foregoing  shows  over  $22,000,000  spent  for  additions  and  betterments  during  the  five 
years,  or  an  average  of  nearly  $4,500,000  annually.  Of  the  above,  $860,023  was  expended  upon 
controlled  roads  in  the  Dominion  of  Canada. 

Of  late  years  it  has  been  the  custom  of  the  road  to  charge  its  entire  surplus  after  dividends,  to 
betterments.    The  amounts  which  have  been  set  aside  from  income  since  1907  are  as  follows: 

Year  Amount 

1908 $2,468,832 

1909 2,789,960 

1910 2,319,158 

1911 2,818,337 

1912 4,252,000 

Total  for  five  years $14,648,287 

Average  per  year 2,929,657 


DIVIDENDS 

Since  the  Great  Northern  Railway  was  chartered  in  1889,  the  following  dividends  have  been 
earned  and  paid: 

Year  Rate  Year  Bate 

1890 1%  1897 53^% 

1891 43^  1898 6H 

1892-6 5  1899-1912 7 

It  will  be  noted  that  the  dividend  rate  was  never  reduced,  once  it  was  established.  It  is  quite 
remarkable,  too,  that  the  company  was  able  to  pay  5%  dividends  through  the  panic  years  of  1893 
and  following. 

The  Profit  and  Loss  Account  of  the  Great  Northern  System  stood  on  its  condensed  balance  sheet 
of  June  30, 1912,  at  $40,953,272.  This  amount,  together  with  $29,450,322  representing  "unexpended 
balances,"  makes  a  total  of  $70,403,594,  which  is  equivalent  to  33%  of  the  outstanding  capital  stock. 

[  287  ] 


STATISTICS 

Following  are  the  capitalization,  earnings  and  traffic  statistics  of  the  Great  Northern  Railway, 
based  on  the  average  niiles  operated,  for  the  year  1900  and  the  years  1905  to  1912  inclusive.  The  fig- 
ures used  in  1900,  and  1905  to  1907  inclusive,  are  those  of  the  Great  Northern  Railway,  the  Mon- 
tana Central  Railway,  the  Willmar  &  Sioux  Falls  Railway,  and  the  Duluth,  Watertown  &  Pacific 
Railway.  From  1908  the  figures  used  are  those  of  the  Great  Northern  Railway  and  the  lines  inde- 
pendently operated;  namely,  the  Minneapolis  Western  Railway  and  the  Duluth  Terminal  Railway. 

In  the  following  tables  "Funded  debt"  includes  bonds  assumed  by  the  Great  Northern  Rail- 
way and  the  obligations  of  the  Minneapolis  Western  Railway.  The  Great  Northern-Northern 
Pacific-Chicago,  Burlington  &  Quuicy  Collateral  Trust  Joint  4s  are  not  included  in  the  "Funded 
debt,"  hence  the  Chicago,  BurUngton  &  Quincy  stock,  as  collateral,  is  not  included  among  the 
securities  shown  in  the  column  "Owned  by  company." 


[  288 


THE   GREAT   NORTHERN    RAILWAY 


Fiscal 

Capita 

Funded 

Rente! 

Gross                Owned  by 

Net 

Averaije 

Extra 

year 

stock 

debt 

at  5% 

capital 

company 

miles 

main 

operated 
5,075 

track 

1900 

$19,484 

$19,064 

$773 

$39,321 

$5,727 

$33,594 

74 

1905 

21,793 

18.884 

348 

41,025 

9,900 

31,065 

5,723 

107 

1906 

25,380 

10,971 

351 

42,702 

11,964 

30,738 

5,906 

110 

1907 

30,847 

16,701 

344 

47,892 

15,752 

32,140 

5,982 

114 

1908 

31,841 

14.855 

534 

47,230 

5,834 

41,396 

6,594 

149 

1909 

30,841 

14,691 

678 

46,210 

6,202 

40,008 

6,808 

163 

1910 

29,910 

15,581 

727 

46,224 

6,816 

39,408 

7,020 

165 

1911 

28,987 

19,924 

1,828 

50,739 

8,754 

41,985 

7,244 

201 

1912 

28,496 

19,508 

2,048 

50,052 

8,178 

41.874 

7,369 

201 

Fiscal 

Gross 

Maintenance         Transportation         Net 

Other 

Totel  net 

FLxed 

Surplus 

year 

operating 

and  general     operating 

income 

income           charges 

avaUable 

$5,696 

Way 
$853 

Equipment 
$410 

expense          revenue 

for  dividends 

1900 

$1,668           $2,765 

$988 

$3,753 

SI, 171 

$2,582 

1905 

7,605 

973 

655 

2,118             3,859 

272 

4,131 

1,190 

2,932 

190G 

8,681 

1,092 

816 

2,469             4,304 

234 

4,538 

1.178 

3,352 

1907 

9,218 

1,341 

939 

3,163             3,775 

438 

4,213 

1,180 

3,042 

1908 

8,254 

1,522 

1.200 

2,761             2,771 

634 

3,405 

1,131 

2,274 

1909 

7,886 

1,439 

906 

2,437             3,104 

587 

3,691 

1,123 

2,568 

1910 

9,183 

1,677 

1,071 

2,848             3,587 

213 

3,800 

1,267 

2.533 

1911 

8,455 

1,333 

1,060 

2,797             3,265 

411 

3,676 

1,259 

2.417 

1912 

8,983 

1,251 

1,065 

2,793             3,872 

518 

4,390 

1,452 

2.938 

Fiscal 

Dividends 

Dther 

.Surplus 

Operating 

Totel          Conduc 

ling        Fis 

ed           Gross 

Net 

Per  cent 

year 

charges 

expenses 

maintenance    transporta-       charges        earnings 

income 

earned  on 

to 

to  gross 

to  gross      tion  to 

?ross      to  g 

ross         to  gross 

to  net 

capitel 

i- 

$354 

$966 

earnings 

earnings         earnings        earnings          capital 

capitel 
11.2% 

stock 

1900 

$1,262 

51.46% 

22.2%           29.3%           20.6%         14.5% 

13.2% 

1905 

1,519 

524 

889 

49.26 

21.5               27.8 

15 

6             18.5 

1S.3 

13.4 

1906 

1,549 

857 

946 

50.42 

22.0               28.4 

13 

5             20.3 

14.8 

13.3 

1907 

1,806 

825 

411 

59.05 

24.8               34.3 

12.8             19.2 

13.2 

9.9 

1908 

1,898 

376 

66.43 

33.0               33.4 

13.7             17.5 

8.2 

7.1 

1909 

2,159 

409 

60.64 

29.7               30.9 

14.2             17.1 

9.2 

8.3 

1910 

2,094 

330 

109 

60.93 

29.9              31.0 

13.8             19.9 

9.6 

8.4 

1911 

2,029 

388 

61.38 

28.3              33.1 

14.9             16.6 

8.7 

8.3 

1912 

1,995 

577 

366 

56.89 

25.8              31.1 

16.2             17.9 

10.5 

10.3 

Fiscal 

Train 

Maintenance 

Conduct- 

Train             Rate  per  mile 

Freight          Trair 

1    Freight 

Passenger, 

year 

mile 

per  revenue 

ing  trans- 

mile 

density            load 

to  all 

freight 

earnings 
(gross) 

train  mile 

portetion    eariungs        Per 

Per 

revenue   traffic 

and 

per  revenue 

(net)        passenger 

ton 

tons 

company 

Way     Equipment 

train  mile 

cars 

1900 

$2.62        $ 

392 

$.191 

$.764         $1.27         $.0238         $.0090 

493,555         357 

78% 

23.351 

1905 

2.98 

381 

.256 

.833 

1.51           .0238 

.00792 

728,666         522 

76 

33,429 

1906 

3.08 

388 

.289 

.873 

1.53           .0235 

.00791 

835,342         529 

76 

35,554 

1907 

3.09 

449 

.315 

1.066 

1.26           .0237 

.00769 

897,719         548 

75 

40,711 

1908 

2.97          .546 

.431 

.995 

.996         .0227 

.00781 

783,127         509 

74 

44,692 

1909 

2.99 

546 

.344 

.926 

1.18           .0224 

.00815 

711,222         502 

73 

44,784 

1910 

2.96 

543 

.347 

.924 

1.16           .0220 

.00821 

808.957        518 

72 

46,809 

1911 

2.80 

442 

.352 

.931 

1.09           .0227 

.00809 

739,576         524 

71 

48,804 

1912 

3.00 

419 

.357 

.944 

1.30           .0248 

.00768 

845,123         601 

72 

50,450 

[  289 


BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Great  Northern 

Railway   System,  together  with  the  bases   upon  which  they 

have  sold  during  the  decade,  ending  December  31,  1912: 


ST.  PAUL,   MINNEAPOLIS   &   MANITOBA  RAILWAY 

Consolidated  Mortgage  Sinking  Fund  6s,  4^25  and  4s 

Dated  May  1,  1883  Maturing  July  1,  1933 

Interest  payable  January  1  and  July  1  at  32  Nassau  Street,  New  York  City. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only,  or  fully  registerable. 
Registered  bonds  of  $1,000. 


Authorized  $50,000,000 


Outstanding  6s    $13,344,000 
4Hs  21,220,000 
4s         8,569,000 
Per  mile  ....  16,900 

Provisions  of      These  bonds  have  been  limited  by  the  terms  of  the  Great  Northern  Railway  First  &  Refunding 
issue:  Mortgage  4I4S  of  1961  to  an  issue  of  $43,223,000,  of  which  $43,114,000  are  outstanding  as 

above.    Under  the  terms  of  the  43^s  of  1961,  a  sufficient  number  of  the  same  have  been  re- 
served to  provide  for  the  retirement  of  this  issue. 


Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  2,551.67  miles  of  road,  covering  over 

two-thirds  of  the  company's  entire  mileage;  also  on  securities,  lands,  buildings  and  equipment 
of  the  company  and  future  acquisitions.  They  are  secured  by  a  first  mortgage  on  the  company's 
terminals  at  St.  Paul  and  ]Minneapohs;  on  the  land  grants  of  the  company,  and  on  2,549.04 
miles  of  road.  They  are  further  secured  by  a  second  mortgage  on  2.63  miles  of  road  of  the 
Minneapolis  Union  Railway,  covered  by  the  first  lien  of  the  Minneapolis  Union  Railway  First 
5s  and  6s  of  1922. 


These  bonds  are  ASSUMED   by  the  Great  Northern  Railway  Company. 

Sinking  fund:  The  proceeds  of  the  company's  land  sales  are  pledged  for  the  payment  of  interest,  and  re- 
demption of  the  principal  of  these  bonds  semi-annually  upon  two  weeks'  notice.  The  trustee 
shall  purchase  the  bonds  at  the  lowest  price  or  in  the  open  market  if  so  obtainable  at  a  lower 
rate  than  any  proposal,  and  bonds  so  purchased  shall  be  cancelled. 


Trustee : 


Central  Trust  Company,  New  York. 


The  St.  Paul,  IMinneapolis  &  Manitoba  Railway  was  organized  under  tlie  laws  of  Minnesota, 
May  23,  1879,  as  the  result  of  a  foreclosure  sale  of  the  St.  Paul  &  Pacific  Railroad.  The  property  of 
the  company  was  leased  to  the  Great  Nortliern  Railway  Company  for  999  years  from  February  1, 
1890,  at  an  annual  rental  equivalent  to  interest  on  the  funded  debt  and  dividends  of  6%  on  the 
outstanding  capital  stock.  The  St.  Paul,  Minneapolis  &  Manitoba  Railway's  property  was  conveyed 
to  the  Great  Northern  Railway  in  1907  and  operated  as  an  integral  part  of  its  system. 

The  6%  bonds  sold  in  1902  on  a  3.75  to  4.05  basis 


1903 

3.95 

4.37 

1904 

4.00 

4.20 

1905 

3.70 

3.88 

1906 

3.75 

4.00 

1907 

4.05 

4.70 

1908 

4.00 

4.25 

1909 

3.90 

4.15 

1910 

4.05 

4.25 

1911 

4.10 

4.25 

1912 

4.15 

4.40 

[292] 

The  41^%  bonds  sold  in  1902  on  a 


1902  on 

a  3.65  to  3.85 

1903 

3.87 

4.15 

1904 

3.77 

4.05 

1905 

3.63 

3.85 

1906 

3.75 

4.05 

1907 

4.00 

4.37 

1908 

3.77 

4.37 

1909 

3.80 

4.10 

1910 

4.00 

4.25 

1911 

4.05 

4.15 

1912 

4.10 

4.25 

The  4%  bonds  sold  in  1909  on  a  4.15  basis  (bid) 

1910  4.00       4.15 

1911  4.05       4.10 

1912  4.00       4.20 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


ST.   PAUL,   MINNEAPOLIS   &   MANITOBA  RAILWAY 
Montana  Extension  First  Mortgage  Gold  4s 


Dated  June  1,  1887 


Maturing  June  1,  1937 


Interest  payable  June  1  and  December  1  at  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  only,  or  fully  registerable. 
Registered  bonds  of  $1,000  and  $5,000. 


Authorized  $25,000,000 


Outstanding   $10,185,000 
Per  mile  .    .  9,370 


Provisions  of      In  addition  to  the  $10,185,000  in  the  hands  of  the  public,  $11,502,000  are  deposited  with  the 
issue:  trustee  of  the  Pacific  Extension  First  4s  of  1940.    No  more  of  these  bonds  may  be  issued  under 

the  terras  of  the  mortgage  of  the  Great  Northern  First  &  Refunding  43<4S  of  1961,  a  sufficient 
number  of  which  have  been  reserved  to  retire  the  outstanding  bonds. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  1,087.36  miles  of  the  company's  road 

extending  from  the  Montana-North  Dakota  State  Line  to  Great  Falls,  and  on  all  roads  and 
branches  now  owned  or  hereafter  acquired  in  Montana,  and  equipment.  They  are  secured  by 
a  first  mortgage  on  837.18  miles,  including  the  411.59  miles  from  the  North  Dakota-Montana 
State  Lme  to  Great  Falls,  Mont.,  and  the  401.48  miles  from  the  Idaho  State  Line  to  Pacific 
Junction,  Mont.  They  are  secured  by  a  second  mortgage  on  the  249.18  miles  covered  by  the 
Montana  Central  First  Mortgage  5s  and  6s  of  1937. 

These  bonds  are  ASSUMED   by  the  Great  Northern  Railway. 

Central  Trust  Company  of  New  York. 


Trustee: 


For  the  history  of  the  St.  Paul,  Minneapolis  &  Manitoba  Railway  Company,  see  page  292. 

[  293  ] 


These  bonds  sold  in  1902  on  a  3.55  to  3.87  basis 


1903 

3.80 

4.00 

1904 

3.75 

4.00 

1905 

3.70 

3.85 

1906 

3.75 

4.00 

1907 

3.98 

4.40 

1908 

4.00 

4.35 

1909 

3.95 

4.15 

1910 

4.00 

4.15 

1911 

4.10 

4.30 

1912 

4.10 

4.30 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


ST.   PAUL,   MINNEAPOLIS   &  MANITOBA  RAILWAY 
Pacific  Extension  First  Mortgage  Gold  4s 

Dated  July  1,  1890  Maturing  July  1,  1940 

Interest  payable  January  1  and  July  1  at  32  Nassau  Street,  New  York,  and  at  Baring  Brothers,  London. 

Principal  and  interest  payable  in  sterling  at  the  rate  of  4s  I3^d  to  the  dollar. 

Coupon  bonds  of  £100,  £500  and  £1,000,  registerable  as  to  principal  only,  or  fully  registerable. 
Registered  bonds  of  £1,000. 

Authorized  £6,000,000  Outstanding  £6,000,000 

Per  mile  .    .  £7,060 

Security:  The  above  bonds  are  secured  by  a  mortgage  on  850.29  miles  of  the  company's  road,  and  on 

lands,  buildings,  rolling  stock  and  franchises  now  owned  or  hereafter  acquired  for  use  on  or 
in  connection  with  this  line.  They  are  secured  by  a  first  mortgage  on  the  company's  line  from 
Everett,  Wash.,  to  the  Idaho-Montana  State  Line,  433.11  miles,  and  by  a  second  mortgage 
on  417.18  miles,  including  the  line  from  the  Idaho-Montana  State  Line  to  Pacific  Junction, 
Mont.,  401.48  miles,  which  is  covered  by  a  part  of  the  first  mortgage  of  the  Montana  Ex- 
tension 4s  of  1937.  They  are  also  secured  by  deposit  with  the  trustee  of  $11,502,000  Montana 
Extension  4s  of  1937,  which  cover  as  a  first  lien  the  above  mileage  in  Montana. 

Equity:  These  bonds  are  prior  in  hen  to  the  Great  Northern  Fu-st  &  Refunding  4i<^s  of  1961,  which 

provide  for  the  retirement  of  this  issue  at  maturity. 

These  bonds  have  been  ASSUMED  by  the  Great  Northern  Railway  Company. 

Trustee :  Central  Trust  Company,  New  York. 

For  the  history  of  the  St.  Paul,  Minneapolis  &  Manitoba  Railway  Company,  see  page  292. 

These  bonds  sold  in  1909  on  a  4.30  basis  (bid) 

1910  4.45  (bid) 

1911  4.45 
December,  1912  4.45  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 

r  294  1 


EASTERN  RAILWAY  OF  MINNESOTA 

Northern  Division  First  Mortgage  4s 

Dated  April  1,  1898  Maturing  April  1.  1948 

Interest  payable  April  1  and  October  1  at  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  prmcipal  or  fully  registerable. 
Registered  bonds  of  $5,000. 

Authorized  $15,000,000  Outstanding  $9,695,000 

Per  mile  .    .  34,100 

Provisions  of      By  the  terms  of  the  mortgage  of  the  Great  Northern  First  &  Refunding  4Ms  of  1961,  the  au- 
issue:  thorized  amount  of  this  issue  has  been  limited  to  those  bonds  at  present  outstanding. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  284.36  miles  of  the  company's  line  includ- 

ing the  line  from  Boylston,  Wis.,  to  Fosston,  Minn.,  and  branches.  They  are  further  secured 
by  a  first  mortgage  on  the  company's  terminals  and  wharves  in  Duluth  and  West  Superior, 
also  upon  the  equipment  of  the  lines  and  future  acquisitions. 

These  bonds  have  been  ASSUMED  by  the  Great  Northern  Railway  Company. 

Equity:  These  bonds  are  prior  in  lien  to  the  Great  Northern  First  and  Refunding  43':i's  of  1961,  a  suffi- 

cient number  of  which  have  been  reserved  to  retire  this  issue  at  maturity. 

Redemption:      The  above  bonds  are  redeemable  at  105  and  interest  on  any  date  after  April  1,  1928,  upon 
three  months'  notice. 

Trustee:  Bankers'  Trust  Company,  New  York. 

The  Eastern  Railway  Company  of  INIinnesota  was  organized  August  13,  1887,  by  special  per- 
mission of  the  Territory  of  Minnesota,  under  the  charter  of  tlie  Minneapolis  &  St.  Cloud  Railroad 
Company.  The  company's  road  from  Hinckley  to  West  Superior  was  opened  for  traffic  September 
23,  1888.  On  May  1,  1902,  the  properties  of  this  company  were  leased  for  99  years  to  the  Great 
Northern  Railway  Company  at  an  annual  rental  equivalent  to  the  interest  on  the  company's  bonded 
debt  and  dividends  at  the  rate  of  6%  per  annum  on  the  capital  stock,  all  of  which  was  owned  by  the 
lessee. 

Together  with  other  proprietary  companies,  the  Eastern  Railway  Company  of  Minnesota  was 
consolidated  into  the  system  of  the  Great  Northern  Railway  in  1907. 

These  bonds  sold  in  1909  on  a  3.92  to  4.10  basis 

1910  4.02 

1911  4.20 

1912  4.10  to  4.20 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


295 


THE   MONTANA   CENTRAL  RAILWAY 

First  Mortgage  5s  and  6s 

Dated  July  1,  1887  Maturing  July  1, 1937 

Interest  payable  January  1  and  July  1  at  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000  and  $5,000. 

Authorized  $10,000,000  Outstanding  (5s)  $4,000,000 

(6s)     6,000,000 
Per  mile  ....  40,100 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  249.18  miles  of  the  company's  road,  in- 

cluding the  line  from  Great  Falls  to  Butte,  Mont.,  169.27  miles,  and  branches.    They  are  fur- 
ther secured  by  a  first  mortgage  on  the  company's  equipment,  lands  and  all  future  acquisitions. 

These  bonds  have  been  ASSUMED  by  the  Great  Northern  Railway  Company. 

Equity:  These  bonds  are  prior  in  lien  to  the  St.  Paul,  Minneapolis  &  Manitoba  Montana  Extension 

4s  of  1937,  and  the  Great  Northern  First  &  Refunding  4j^s  of  1961,  a  sufficient  number  of 
which  have  been  reserved  to  retire  this  issue  at  maturity. 

Trustee:  Central  Trust  Company,  New  York. 

The  Montana  Central  Railway  Company  of  Minnesota  was  organized  January  25, 1886.  The  com- 
pany's main  line  and  branches  were  opened  as  constructed  at  various  times,  between  1887  and  1893.  The 
company  was  controlled  by  the  Great  Northern  Railway  Company  through  ownership  by  the  latter 
of  its  entire  capital  stock,  and  its  operations  were  included  in  the  statement  of  the  Great  Northern. 

Together  with  other  proprietary  companies,  the  Montana  Central  Railway  Company  was  con- 
solidated into  the  Great  Northern  Railway  Company  in  1907. 


The  First  5s  of  1937  sold  in  1902  on  a  3.70  to  3.75 

1903 

4.10 

4.40 

1004 

4.10 

4.20 

1905 

3.90 

4.00 

1906 

3.90 

4.10 

1907 

4.10 

4.70 

1908 

4.15 

4.30 

1909 

4.00 

4.20 

1910 

4.15 

4.37 

1911 

4.20 

1912 

4.25 

4.40 

The  First  6s  of  1937  sold  in  1902  on  a  3.85  to  4.15 

1903 

4.12 

4.15 

1904 

4.05 

4.15 

1905 

3.95 

4.05 

1906 

3.95 

4.10 

1907 

4.15 

4.50 

1908 

4.20 

4.30 

1909 

4.05 

4.15 

1910 

4.20 

4.40 

1911 

4.15 

4.25 

1912 

4.20 

4.37 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Maine. 

[296  ] 


WILLMAR   &   SIOUX  FALLS   RAILWAY 

First  Mortgage  5s 

Dated  June  1,  1888  Maturing  June  1,  1938 

Interest  payable  June  1  and  December  1  at  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000. 

Authorized  $2,625,000  Outstanding  $3,625,000 

Per  mile  .    .  11,900 

Provisions  of      Besides  the  amount  authorized  as  above,  there  have  been  additional  bonds  authorized  for 
issue:  construction  and  purchase  of  branches  at  a  rate  not  to  exceed  $17,500  per  mile.     To  date 

$3,646,000  of  these  bonds  have  been  issued,  and  under  the  terms  of  the  Great  Northern  First 
&  Refunding  4}is  of  1961  this  mortgage  is  closed.  Beside  the  amount  outstanding,  as  above, 
$21,000  of  these  bonds  are  held  by  the  trustee  of  the  First  &  Refunding  41^48  of  1961,  a  sufficient 
number  of  which  have  been  reserved  to  acquire  all  those  at  present  outstanding. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Willmar,  Minn., 

to  Sioux  City,  la.,  223.15  miles,  and  also  the  line  from  Garretson  to  Yankton,  S.  D.,  80.94 
miles.    All  the  equipment  and  future  acquisitions  of  these  lines  are  included  under  the  mortgage. 

These  bonds  have  been  ASSUMED  by  the  Great  Northern  Railway  Company. 

Trustee :  Central  Trust  Company,  New  York. 

The  Willmar  &:  Sioux  Falls  Railway  Company  was  chartered  under  the  laws  of  the  State  of 
Minnesota  INIarch  3,  1886,  and  its  road  was  opened  for  traffic  from  Willmar  to  Yankton,  South  Da- 
kota, 205  miles,  on  November  1,  1893.  In  1900  the  company  acquired  the  Sioux  City  &  Northern 
Railroad,  the  Sioux  City  &  Western  Railway,  and  the  property  of  the  Sioux  Falls  Terminal 
Railroad. 

This  company,  up  to  1907,  was  controlled  by  the  Great  Northern  Railway  Company  through 
ownership  of  its  entire  capital  stock,  and  its  operations  were  included  in  those  of  the  latter.  The 
property  of  the  Willmar  &  Sioux  Falls  Railroad  Company  was  formally  consolidated  into  that  of  the 
Great  Northern  Railway  Company  in  1907. 

These  bonds  sold  in  1902  on  a  3.70  to  3.75  basis 


1903 

4.20 

1904 

4.05 

1905 

3.85 

1906 

4.12 

1909 

4.02  to  4.08 

1910 

4.25  (bid) 

1911 

4.20  to  4.23 

December,  1912 

4.45  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


297  ] 


MINNEAPOLIS  UNION  RAILWAY 

First  Mortgage  5s  and  6s 

Dated  March  1,  1882  Maturing  July  1,  1922 

Interest  payable  January  1  and  July  1  at  32  Nassau  Street,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $3,000,000  Outstanding  (5s)    $650,000 

(6s)   2,150,000 

Provisions  of      Under  the  indenture  of  the  Great  Northern  First  &  Refunding  4j^s  of  1961,  this  mortgage 
issue:  is  closed. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  2.6  miles  of  double  track  and  4.75  miles 

of  sidings  extending  from  the  Union  Stock  Yards  to  the  Union  Depot  in  Minneapolis,  includ- 
ing the  bridge  across  the  Mississippi  River  and  the  Union  Depot  of  Minneapolis. 

These  bonds  are  ASSUMED  by  the  Great  Northern  Railway  Company. 

Equity :  The  above  bonds  are  prior  in  lien  to  the  St.  Paul,  Minneapolis  &  Manitoba  Consolidated  bonds 

of  1933  and  also  prior  to  the  Great  Northern  First  &  Refunding  i}4s  of  1961,  a  sufficient  num- 
ber of  which  have  been  reserved  to  retire  this  issue  at  maturity. 

Trustee :  Central  Trust  Company,  New  York. 

The  Minneapolis  Union  Railway  Company  was  organized  under  the  laws  of  the  State  of  Minne- 
sota, November  28,  1881.  It  opened  the  bridge  over  the  Mississippi  River,  September  1,  1884.  The 
business  of  the  company  was  to  supply  terminal  facilities  to  other  companies.  The  propertj%  which 
was  consolidated  into  the  Great  Northern  System  in  1907,  is  now  used  by  the  Great  Northern  Rail- 
way, the  Northern  Pacific  Railway  Company,  the  Chicago,  St.  Paul,  Minneapolis  &  Omaha  Railway, 
the  Chicago,  Burlington  &  Quincy  Railway  and  the  Wisconsin  Central  Lines. 


The  First  6s  of  1922  were  so 

Id  in  1905  ' 

on 

a  4.05  to  4.10 

1909 

4.27 

1910 

4.40       4.60 

1911 

4.10       4.35 

1912 

4.05       4.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  Connecticut. 


[  298  ] 


SPOKANE  FALLS   &  NORTHERN   RAILWAY 

First  Mortgage  6s 

Dated  July  1,  1889  Maturing  July  1,  1939 

Interest  payable  January  1  and  July  1  at  32  Nassau  Street,  New  York  City, 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $20,000  per  mile  Outstanding  $229,000 

Per  mile  .    .       21,400 

Provisions  of      The  total  amount  of  these  bonds  issued  was  $2,812,000,  of  which  $2,583,000  are  held  by  the 
issue:  trustees  of  the  Great  Northern  First  &  Refunding  43^s  of  1961,  under  the  terms  of  whose  mort- 

gage no  more  of  these  bonds  may  be  issued. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  130.14  miles  of  the  company's  road  in- 

cluding the  line  from  Dean,  Wash.,  to  the  International  Boundary  Line,  125.8  miles. 

These  bonds  have  been  ASSUMED  by  the  Great  Northern  Railway  Company. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Great  Northern  First  &  Refunding  4}<4S  of  1961,  a 

sufficient  number  of  which  have  been  reserved  to  retire  this  issue  at  maturity. 

Trustee:  Manhattan  Trust  Company,  New  York. 

The  Spokane  Falls  &  Northern  Railway  Company  was  chartered  April  14,  1888,  and  its  road  was 
opened  throughout  on  June  26,  1893.  Up  to  the  time  that  it  was  formally  merged  into  the  Great 
Northern  Railway  System  in  1907,  the  latter  controlled  the  Spokane  Falls  &  Northern  Railway  Com- 
pany through  ownership  of  its  entire  capital  stock  and  the  total  issue  of  bonds. 

These  bonds  quoted  in  1905  on  a  4.25  basis 

1909  4.95 

1910  5.15 

1911  5.30 
December,  1912  5.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  299  ] 


THE   GREAT  NORTHERN   RAILWAY 


First  &  Refunding  Mortgage  Gold  4ViS 


Dated  May  1,  1911 


Interest  payable  January  1  and  July  1  at  32  Nassau  Street,  N( 


Maturing  July  1,  11)01 
York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000  and  multiples.     Coupon  and  registered  bonds  interchangeable. 


Authorized  $600,000,000 


Outstanding  $35,000,000 


Provisions  of      To  date  but  $45,000,000  of  these  bonds  have  been  issued,  $10,000,000  being  in  the  treasury  of 
issue:  the  company,  and  the  balance  outstanding  as  above.    Those  unissued  have  been  reserved  as 

follows : 

$332,162,000  to  refund  prior  mortgage  bonds  and  the  Northern  Pacific-Great  Northern  C.  B. 

&  Q.  4%  Collateral  Joint  bonds. 
100,000,000  to  cover  cost  of  construction  and  acquiring  additional  railways  and  equipment, 

and  for  additions  and  betterments  at  not  exceeding  $3,000,000  per  annum. 
92,838,000  to  cover  cost  of  acquisition  after  January  1,  1912,  of  the  bonds  and  stock  of 

other  companies. 
30,000,000  to  cover  the  cost  of  property  acquired  after  May  1,  1911,  for  the  acquisition  of 

which  bonds  are  not  otherwise  authorized  in  this  mortgage. 

Security :  The  above  bonds  are  secured  by  a  first  lien  on  the  equipment  owned  by  the  company,  costing 

$46,200,068;  on  2,070.46  miles  of  main  and  branch  line  railway  within  the  United  States  be- 
longing to  the  company;  and  through  deposit  with  the  trustee,  of  the  entire  share  capital 
(except  directors'  shares)  of  proprietary  companies,  on  13.05  miles  of  additional  railway  in 
the  United  States  and  on  553.74  miles  of  railway  in  Canada  with  its  equipment.  Subject  to 
the  lien  of  underlying  mortgages  at  an  average  rate  of  $22,822  per  mile,  these  bonds  are  also 
a  lien  on  4,791.42  miles  of  railway  with  its  equipment. 

Redemption:      The  above  bonds  are  redeemable  at  105  and  interest  after  January  1,   1941,  upon  90  days' 
notice. 

Trustee:  Bankers'  Trust  Company,  New  York. 

These  bonds  sold  in  1911  on  a  4.20  to  4.25  basis 
1912  4.15       4.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  Vermont,  Massachusetts  and 
Rhode  Island. 


[  300  ] 


ILLINOIS  CENTRAL  RAILROAD  COMPANY 


ILLINOIS  CENTRAL  RAILROAD  COMPANY 


HISTORY 

In  January,  1850,  a  bill  was  introduced  in  Congress  providing  for  a  grant  to  the  State  of  Illinois 
of  public  land  to  the  extent  of  3,840  acres  per  mile  to  aid  in  the  construction  of  a  railroad  north  and 
south  from  Cairo  to  Chicago.  Shortly  after  this  bill  was  approved,  the  Illinois  Central  Railroad 
Company  was  organized  and  petitioned  the  Legislature  of  Illinois  for  authority  to  build  the  road. 
Its  charter  was  granted  February  10,  1851,  and  the  company  at  once  set  vigorously  to  work  to  carry 
out  its  undertaking.  The  first  engineering  partly  was  organized  in  the  following  May,  and  by  the 
end  of  the  year  the  entire  line  had  been  surveyed.  The  first  contract  was  let  March  15,  1852,  and 
the  first  portion  of  the  main  line  was  opened  for  traffic  May  24,  1852.  The  entire  road,  then  705.05 
miles,  was  completed  and  put  into  operation  September  27,  1856. 

The  act  of  mcorporation  of  the  Illinois  Central  Railroad  Company  surrendered  to  the  latter  all 
the  property  acquired  by  the  state  to  construct  a  railroad,  including  the  United  States  Government 
lands.  The  latter  consisted  of  2,595,000  acres  situated  along  the  line  of  the  road.  The  charter  ex- 
empts the  company's  property  from  taxation  in  the  state,  but  in  lieu  thereof  requires  the  payment 
to  the  latter  of  7%  of  the  gross  receipts  of  the  original  railroad.  The  amount  paid  the  State  of  Illinois 
under  this  provision,  from  the  opening  of  the  road  in  1855  to  the  present  time,  is  over  $30,000,000. 

The  Illinois  Central  Railroad  owns  practically  the  entire  system  which  it  operates.  Only  in  the 
Dubuque  &  Sioux  City  Railroad  Company  may  there  be  said  to  be  minority  interests  not  controlled 
by  the  former. 

The  first  addition  made  to  the  system  was  through  the  lease  of  this  same  Dubuque  &  Sioux 
City  Railroad  on  September  13,  1867.  The  Dubuque  &  Sioux  City  was  a  reorganization  in  1860 
of  the  Dubuque  &  Pacific  Railroad  Company  which  had  been  chartered  in  1856  to  construct  a  rail- 
road from  Dubuque  to  Sioux  City,  la.  The  Illinois  Central  lease  was  assumed  for  20  years  and  a 
force  was  put  to  work  to  complete  this  road  as  originally  planned.  The  line  was  opened  for  traffic 
on  October  10,  1870,  so  that  by  the  close  of  that  year  the  Illinois  Central  owned  and  operated  a  con- 
tinuous system  of  railroads  extending  from  Chicago  to  Cairo  and  from  Centralia  to  the  Mississippi 
River  at  Dubuque  and  Sioux  City  on  the  Missouri  River,  a  total  of  1,112  mUes. 

In  1870  an  organization  known  as  the  Southern  Railroad  Association  was  formed  and  ac- 
quired control  of  the  numerous  railroads  in  Louisiana  and  Mississippi.  In  the  following  year  the 
Illinois  Central  managers  conceived  the  idea  of  extending  their  system  into  the  South,  and  realizing 
the  value  of  the  roads  acquired  by  this  association,  entered  into  a  traffic  agreement  with  it.  The 
connection  between  the  Illinois  Central  and  the  Southern  Lines  was  supplied  by  transfer  steamers 
until  1887,  when  the  Chicago,  St.  Louis  &  New  Orleans  Railroad,  the  company  resulting  from  the 
amalgamation  of  these  Southern  Lines,  built  a  bridge  across  the  Ohio  River.  This  bridge  was  opened 
for  traffic  October  29,  1889,  and  the  river  transfer  was  discontinued. 

July  1,  1882,  the  Illinois  Central  took  a  four-hundred-year  lease  of  the  Chicago,  St.  Louis  &  New 
Orleans  Railroad,  assuming  all  the  bonded  and  other  obligations  of  that  road  and  guaranteeing  4% 
per  annum  on  its  capital  stock.  In  that  same  year  construction  was  begun  on  the  Yazoo  &  Missis- 
sippi River  Valley  Railroad,  which  in  1892  was  consolidated  with  the  Louisville,  New  Orleans  & 
Texas  Railroad,  extending  from  Memphis,  Tennessee,  to  New  Orleans,  and  the  two  together  were 
purchased  by  the  Illinois  Central  Railroad  Company. 

[  303  ] 


To  obtain  an  outlet  to  the  north  for  business  brought  into  Memphis  over  the  lines  of  the  Illi- 
nois Central  and  the  Yazoo  &  Mississippi  Valley  Railroads,  advantage  was  taken  of  the  low  prices 
prevailing  after  the  panic  of  1893  to  purchase  a  controlling  interest  in  the  Chesapeake,  Ohio  &  South- 
western Railroad  Company.  Later  this  interest  was  turned  over  to  the  Chicago,  St.  Louis  & 
New  Orleans  Railroad  and  operated  as  one  of  its  divisions. 

For  the  purpose  of  gaining  an  independent  entrance  into  St.  Louis,  the  Illinois  Central,  in  1896, 
took  a  lease  for  99  years  of  the  railroads  operated  by  the  St.  Louis,  Alton  &  Terre  Haute  Company, 
known  as  the  "Cairo  Short  Line,"  agreeing  to  assume  all  liabilities  and  guaranteeing  dividends  of 
234%  annually  on  its  stock  and  4.8%  annually  on  the  preferred  stock  of  its  subsidiary,  the  Belleville 
&  Southern  Illinois  Railroad.  The  properties  thus  acquired  now  form  the  St.  Louis  division  of 
the  Illinois  Central. 

The  line  from  Springfield  to  East  St.  Louis,  Illinois,  formerly  a  part  of  the  St.  Louis,  Peoria  & 
Northern  Railway,  was  purchased  October  1,  1900.  During  the  next  three  or  four  years  many  small 
roads  were  purchased  and  absorbed.  The  Memphis  &  State  Line  Railroad  was  purchased  June  30, 
1908,  and  in  November  of  that  same  year  the  stocks  and  bonds  of  the  Kentucky  Valley  Railroad 
were  taken  over. 

By  far  the  most  important  acquisition  made  by  the  Illinois  Central  in  the  decade  ending  1911, 
was  the  purchase  of  the  capital  stock  of  the  Central  of  Georgia  Railroad  Company,  in  1909.  In 
June,  1907,  this  stock,  which  had  been  held  by  the  Richmond  Terminal  Reorganization  Committee 
since  1896,  was  sold  to  certain  railroad  financiers  who  turned  it  over  to  Mr.  Harriman  of  the  Union 
Pacific  Railroad  Company.  This  stock  was  later  acquired  by  the  Illinois  Central  Railroad  and  for- 
mally transferred  to  that  company  in  1909,  at  a  cost  of  $3,474,279. 

Beginning  July  1,  1911,  the  property  of  the  Indianapolis  Southern  Railroad  Company  was 
operated  as  a  part  of  the  Indiana  Division  of  the  Illinois  Central.  The  former  had  been  chartered 
in  September,  1899,  under  the  laws  of  Indiana,  to  construct  a  road  from  Indianapolis  to  Sullivan, 
Indiana,  100  niiles.  Through  various  acquisitions  the  company's  mUeage  had  grown  to  nearly  200 
miles  by  1911.  In  May  of  that  year  the  property  was  sold  under  foreclosure  and  purchased  by  the 
Illinois  Central  Railroad  Company. 

The  Illinois  Central,  from  its  organization,  had  enjoyed  an  exceptional  degree  of  independence 
until  the  formation  of  the  Railroad  Securities  Company  in  1900.  This  company  was  created  origi- 
nally in  the  interests  of  the  Illinois  Central,  and  owned  among  its  assets  $8,000,000  of  the  Illinois 
Central  stock.  Later  the  Railroad  Securities  Company  came  under  the  control  of  the  Union  Pacific 
Railroad  Company,  and  the  two  by  1906  had  practically  gained  control  of  the  Illinois  Central.  On 
June  30,  1911,  the  Railroad  Securities  Company  owned  $9,200,000  of  the  Ilhnois  Central  stock,  and 
the  Union  Pacific  owned  $22,500,000. 


PROPERTY 

On  June  30,  1912,  the  Illinois  Central  Railroad  Company  reported  the  following  miles  of  main 
track  in  operation: 

Charter  lines  owned 705.50  miles 

Purchased  lines  owned 1,561.42 

Proprietary  lines  (stock  controlled  by  I.  C.) 2,279.16 

Operated  by  joint  agreement,  leases,  trackage  rights,  etc.       .    .    .  223.33 

Total  miles  of  main  track 4,769.41 

An  average  of  4,762.70  miles  was  under  operation  during  the  fiscal  year  1912. 
The  Illinois  Central  is  the  great  north  and  south  line  of  the  Mississippi  Valley.    Its  main  lines 

[  304  ] 


connect  Chicago  and  New  Orleans  at  practically  water  level,  entering  the  latter  over  the  tracks  of 
the  Illinois  Central  and  the  Yazoo  &  Mississippi  Valley  Railroad. 

Several  important  branches  are  included  in  the  system,  one  from  Chicago  westerly  to  Omaha 
and  Sioux  Falls,  another  from  Springfield  easterly  to  Indianapolis  over  the  Indianapolis  Southern 
Railroad,  and  still  another  easterly  from  Cairo,  Kentucky,  to  Louisville.  Trackage  rights  from 
Jackson,  Tennessee,  open  up  Birmingham,  Alabama,  to  the  Illinois  System,  and  it  is  at  that  point 
that  the  latter  connects  with  the  Central  of  Georgia  Railway,  whose  system  covers  the  Central 
South,  with  lines  from  Chattanooga  via  ^Macon  to  Savannah  on  the  coast,  and  branches  to  Mont- 
gomery, Alabama,  \-ia  Columbus,  also  northerly  from  Macon  to  Atlanta,  Athens,  and  Augusta, 
covering  the  cotton  belt  and  reaching  into  the  coal  regions  of  Alabama  and  Georgia. 

The  Illinois  Central  Railroad  System  serves  the  States  of  Illinois,  Iowa,  Indiana,  Tennessee  and 
Mississippi.  The  combined  population  of  these  States,  in  1890,  was  10,987,000,  in  1900,  13,132,000, 
and  in  1910,  14,546,000. 


CAPITALIZATION 

The  capitalization  of  the  Illinois  Central  for  the  fiscal  year  ending  June  30,  1912,  was  as  follows: 

Capital  stock $109,296,000 

Leased  line  stock 9,989,700 

$119,285,700 
Funded  debt 185,736,000 

Nominal  capital $305,021,700 

Rentals  capitalized  @  5% 30,734,000 

Gross  capitalization      $335,755,700 

Securities  owned 83,205,491 

Net  capitalization $252,550,209 

Net  capitalization  per  mile  operated $53,024 

Average  miles  operated 4,762.70 

Net  income  to  net  capital 6.3% 

Fixed  charges  to  net  income 78.3% 

Margin  of  safety 21.7% 

In  the  above  table  the  leased  line  stock  represents  the  outstanding  stock  issued  in  exchange  for 
an  equal  amount  of  Chicago,  St.  Louis  &  New  Orleans  stock,  and  secured  by  the  deposit  in  trust  of 
the  latter.  Its  dividends  of  4%  are  guaranteed  and  in  case  of  default  for  60  days,  the  owners  of 
the  leased  line  stock  would  be  entitled  to  the  return  of  the  Chicago,  St.  Louis  &  New  Orleans  stock 
thus  pledged. 

The  rentals,  which  have  been  capitalized  at  5%,  include  the  interest  on  the  bonds  of  the 
Chicago,  St.  Louis  &  New  Orleans  Railroad  Company,  and  the  net  interest  paid  as  rental  on  the 
Dubuque  &  Sioux  City  Railroad.    In  1912  these  items  amounted  to  $1,536,708. 

During  the  fiscal  year  1912  there  were  no  changes  in  the  capital  stock  of  the  company.  There 
was  one  minor  issue  of  bonds  durmg  the  year,  $1,800,000,  being  the  balance  of  the  company's 
$10,000,000  authorized  Refunding  Mortgage  Bonds.  There  were,  however,  $2,000,000  of  the  First 
Lien  Equipment  4s  of  1923  and  $1,515,000  additional  bonds  delivered  to  the  trustee  and  cancelled, 
leaving  a  net  decrease  in  the  company's  funded  debt  of  $1,715,000. 

The  company's  net  capitalization  per  mile  in  1912  was  $53,024  as  compared  with  $56,795  in  1911. 

[  305  ] 


The  decrease  in  this  figure  is,  in  part,  accounted  for  by  the  fact  that  200  additional  miles  were  oper- 
ated during  the  year.  The  Illinois  Central  earned  a  net  income  of  6.3%  on  its  net  capitalization  in 
1912  as  compared  with  9.2%  in  1911. 

The  average  net  capitalization  per  mile  of  road  operated,  figured  from  the  company's  annual 
reports  for  ten  years  ending  June  .10,  1912,  was  $49,035,  upon  which  an  average  net  income  of  8.9% 
was  earned.  Comparing  this  record  with  that  of  the  Louisville  &  Nashville,  a  road  operating  under 
similar  conditions,  we  find  a  capitalization  figure  for  the  same  period  of  $39,658.  Upon  this  aver- 
age capitalization,  however,  the  Louisville  &  Nashville  was  able  to  earn  but  9.1%. 

Since  1900  there  have  been  various  increases  in  the  capital  stock  and  funded  debt  of  the  company. 
That  these  increases  were  justified  by  the  earning  capacity  of  the  road  can  best  be  shown  by  the 
following  table: 

Year  Capital  stock  Funded  debt  Total  Gross  earnings 

1900 $60,000,000        $120,873,925         $180,873,925        $32,611,967 

1912 109,296,000  185,736,000  295,032,000  58,727,272 


Increase      $114,158,075         $26,115,305 

Percent      63%  80% 

While  the  nominal  capital  of  the  Illinois  Central  increased  63%,  gross  earnings  increased  over 
$26,000,000,  or  80%.  The  most  important  increases  in  capital  stock  came  in  the  year  1901-1902, 
when  it  was  nearly  doubled,  and  in  1908,  when  285,120  shares  of  new  stock  were  authorized,  the 
increase  being  for  the  purpose  of  paying  for,  constructing  and  improving  the  lines  of  the  company. 
In  1904  and  1909  came  the  larger  part  of  the  increase  in  funded  debt,  due  to  the  issue  of  Purchase  Line 
Bonds  [distributed  over  about  750  miles  of  added  track]  and  Refunding  Mortgage  4s  (which  see). 

The  capital  stock  outstanding  amounts  to  considerably  less  than  half  the  estimated  net  capital- 
ization, but  the  credit  of  the  Illinois  Central  is  high.  Even  after  large  maintenance  charges,  fixed 
charges  consumed  78%  of  the  company's  total  net  income,  leaving  a  margin  of  safety  for  the 
interest  on  its  underlying  securities  of  nearly  22%. 


CHARACTER   OF  TRAFFIC 

Measured  by  the  volume  of  earnings,  the  Illinois  Central's  freight  business  amounts  to  about 
two-thirds  of  the  total.  No  indication  as  to  the  character  of  its  traffic  was  given  by  the  company 
until  1911,  when  its  report  showed  the  following  classification  of  freight: 

Products  of  1912  1911  1910 

Agriculture 18.9%  18.1%  17.8% 

Animals      2.9  2.8  2.5 

Mines      38.1  35.1  36.7 

Forests 15.9  16.9  18.0 

Manufactures 8.2  8.3  9.8 

Miscellaneous 16.0  18.8  15.2 

100.0%  100.0%  100.0% 

It  will  be  noted  that  75%  of  the  company's  freight  traflBc  is  made  up  of  low  grade  commodities, 
such  as  grain,  coal  and  lumber.  This  fact  has  affected  the  average  rate  per  ton  per  mile,  keeping  it 
down  to  $.0059  for  the  decade  ending  1912. 

Following  are  some  of  the  more  important  freight  statistics  of  the  Illinois  Central  for  the  six 
years  ending  1912: 

[  306  ] 


Train 

Freight 

Average  rate 

load  tons 

earnings 

per  ton  per  mile 

363 

$38,033,270 

$.0058 

351 

35,357,811 

.0058 

355 

36,003,897 

.0059 

364 

38,777,758 

.0059 

361 

40,682,197 

.0061 

356 

37,881,766 

.0061 

Year  Freight 

density 

1907  1,508,206 

1908  1,366,186 

1909  1,328,963 

1910  1,445,998 

1911  1,464,482 

1912  1,303,979 

The  average  number  of  tons  of  revenue  freight  carried  per  train  in  1902  was  but  280.  In  1907 
the  average  had  climbed  to  363.  With  the  exception  of  a  nominal  setback  in  1908  and  1909,  this 
figure  has  been  maintained  up  to  the  present  time,  showing  the  generally  high  standard  of  operating 
efficiency  during  the  period.  Freight  earnings  in  1911  were  the  highest  ever  reported.  They  increased 
nearly  15%  from  the  low  figure  of  the  period,  while  the  average  rate  per  ton  increased  5%  during  the 
same  time.  Freight  earnings  declined  $2,800,000  during  1912  owing  to  a  severe  winter  and  the  floods 
in  the  spring  on  the  southern  lines,  which  seriously  interrupted  traffic. 

Comparing  the  average  freight  density  and  the  average  train  load  tons  of  the  Illinois  Central 
for  the  decade  ending  1912,  with  those  of  the  Louisville  &  Nashville  Railroad  and  the  Rock  Island 
Lines,  we  find  the  Illinois  Central  excelling  both  of  its  freight  competitors  in  these  respects : 

For  ten  years  Average  Average 

ending  1912  freight  density  train  load  tons 

Illinois  Central 1,350,600  340 

Louisville  &  Nashville 1,006,030  249 

Rock  Island  Lines       513,365  248 

Nearly  20%  of  the  company's  business  is  represented  by  its  passenger  traffic.  Tabulated  below 
are  the  passenger  densities,  earnings  and  passenger  rates  per  mile  of  the  Illinois  Central  since  1906: 

Year  Passenger  Passenger  Average  rate 

density  earnings  per  passenger 

per  mile 

1907 130,396  $11,187,533  $.0196 

1908 133,891  10,991,798  .0185 

1909 130,125  10,865,359  .0183 

1910 142,916  11,881,013  .0182 

1911 153,294  12,925,004  .0184 

1912 148,990  13,337,562  .0188 

The  number  of  passengers  carried  one  mile  per  mile  of  road  operated  was  but  93,851  in  1902, 
as  compared  with  153,294  in  1911,  a  gain  for  the  decade  of  63%.  In  1910  the  passenger  density  in- 
creased 9.8%  over  the  figures  reported  in  1909,  while  the  gain  in  revenue  from  that  source  amounted 
to  9.3%, 

The  sharp  decline  in  1908  in  the  rate  per  passenger  per  mile  was  due  to  the  reduction  of  fares 
from  three  to  two  cents,  forced  upon  railroads  operating  in  Illinois  and  Iowa.  A  fractional  gain  in 
this  rate  in  1911,  together  with  a  substantial  increase  in  the  number  of  passengers  carried  one  mile 
per  mile  of  road,  resulted  in  the  largest  gross  passenger  earnings  ever  reported.  In  spite  of  the  decline 
in  passenger  density  this  figure  was  bettered  in  1912  as  the  result  of  a  substantially  higher  average  rate. 


[  307  ] 


EARNINGS 

During  the  six  years  ending  1912,  the  IlHnois  Central  has  reported  gross  and  net  earnings  as 
follows : 


Year 

Average 

Gross 

Per  mile 

Net 

Per  mile 

Operating 

miles 

earnings 

earnings 

ratio 

operated 

1907    . 

.    4,370 

$56,610,633 

$12,954 

$18,762,926 

$4,296 

66.9 

1908    . 

.    4,420 

52,830,426 

11,951 

14,936,948 

3,379 

71.7 

1909    . 

.    4,547 

53,672,336 

11,804 

15,256,697 

3,355 

71.5 

1910    . 

.    4,550 

57,884,721 

12,720 

14,563,990 

3,200 

74.8 

1911    . 

.    4,563 

60,977,031 

13,362 

17,120,803 

3,751 

71.9 

1912    . 

.    4,763 

58,727,272 

12,329 

10,605,805 

2,227 

81.9 

The  general  business  depression  of  1907  and  1908  was  reflected  in  the  gross  earnings  of  the  Illi- 
nois Central.  For  the  fiscal  year  of  1908,  gross  earnings  declined  6.7%,  and  in  spite  of  transportation 
economies  and  every  effort  to  curtail  expense,  operating  costs,  as  a  whole,  increased  2%,  bringing 
about  a  decline  in  net  earnings  of  over  $3,800,000.  The  company's  operating  ratio  —  the  ratio  of 
expenses  to  earnings  —  increased  from  66.9%  to  71.7%.  This  ratio  has  never  been  under  71% 
since  that  time.  In  fact,  in  1910  it  was  up  to  74.8%,  declining  in  1911  to  71.9%.  This  generally 
higher  ratio  of  expenses  to  earnings  can  be  traced  to  increased  cost  of  transportation  beginning  in 
1908,  when  for  every  hundred  dollars  in  revenue  it  cost  $41.30  for  transportation  alone. 

In  1910,  while  gross  earnings  increased  $4,200,000,  operating  expenses  were  increased  $5,000,000, 
due  to  a  large  increase  in  maintenance  costs,  bringing  about  a  decline  in  net  earnmgs  of  nearly  5%. 
During  the  fiscal  year  1911  the  total  revenue  from  operation  was  the  highest  in  the  history  of  the 
company,  being  over  $3,000,000  better  than  the  gross  revenues  reported  in  1910.  Most  of  this  was 
saved  for  net,  but  even  the  1911  net  earnings  were  nearly  9%  lower  than  those  of  1907,  which  is 
still  a  high-water  mark  in  that  item. 

During  the  fiscal  year  1912  the  Illinois  Central  suffered  about  equally  from  decreased  gross 
earnings  and  higher  operating  costs,  producing  an  operating  ratio  for  the  year  of  81.9%,  an  ex- 
tremely high  figure.  The  ratio  of  conducting  transportation  to  gross  earnings  increased  from  39.4% 
in  1911  to  45.3%  in  1912.  Abnormal  expenses  were  encountered,  bringing  the  operating  ratio  in 
some  months  as  high  as  85%,  the  principal  reason  being  the  strike  of  the  shopmen.  This  strike 
began  on  September  30,  1911,  and  for  several  months  caused  great  inconvenience  to  the  company 
and  its  patrons.  This,  together  with  floods  in  the  spring  on  the  Southern  lines,  measurably  in- 
creased the  expense  of  maintaining  and  operating  the  railroad.  As  a  result  of  this  decline  in  gross 
and  net  earnings,  the  company  was  able  to  show  but  3.1%  earned  on  its  capital  stock,  after  the 
payment  of  fixed  charges.    This  compares  with  10.3%  earned  in  1911. 


MAINTENANCE 

The  Illinois  Central  has  spent  the  following  amounts  for  maintenance  since  1906: 

Year                                                                        Maintenance  Total  Per  mile 

Way                       Equipment  maintenance 

1907   $6,851,450    $9,596,007  $16,447,457  $3,762 

1908   6,758,173     9,310,136  16,068,309  3,635 

1909   6,196,287     11,265,627  17,461,914  3,841 

1910   7,607,891     13,502,250  21,110,141  4,639 

1911   7,523,295     12,317,364  19,840,659  4,348 

1912 .   7,691,214     13,857,549  21,548,763  4,523 

[  308  ] 


The  large  amounts  spent  for  maintenance  of  equipment  in  1910,  together  with  the  tendency  of 
the  same  to  increase  since  1907,  were  brought  under  investigation,  which  led  to  the  discovery  that 
the  company  was  being  defrauded  of  large  sums  for  work  done  in  repairing  locomotives  and  cars  in 
outside  shops.  It  was  found,  too,  that  part  of  the  1909  repair  expenses  was  unpaid,  being  included 
in  the  1910  figures.  This  leak  was  immediately  stopped,  as  was  shown  by  the  reduction  in  that 
item  in  1911.  The  increase  during  the  fiscal  year  1912  was  due  to  extraordinary  expenses  incurred 
during  the  strike  of  the  shopmen  in  the  fall  of  1911. 

The  Illinois  Central's  per  mile  figures  compare  favorably  with  those  of  the  Louisville  &  Nash- 
ville and  Rock  Island  Lines.  During  the  ten  years  ending  1912  the  three  roads  have  averaged  an 
expenditure  per  mile  for  maintenance  of  the  following  amounts : 

Illinois  Central $3,705 

Louisville  &  Nashville 3,500 

Rock  Island  System 1,973 

Each  reported  an  average  traffic  density  for  the  period  of  1,481,240,  1,104,750,  and  613,602 
respectively. 

ADDITIONS  AND  BETTERMENTS 

In  the  five  years  ending  June  30,  1912,  the  Illinois  Central  charged  to  capital  over  $20,000,000 
for  additions  and  betterments  to  road  and  equipment  as  follows: 

Year  Road  Equipment  Total 

1908 $1,542,858  $5,796,837  $7,339,695 

1909 1,435,276  ....  1,435,276 

1910 1,229,252  327,381  1,556,633 

1911 2,101,140  1,315,681  3,416,821* 

1912 5,006,541  1,771,993  6,778,534* 

Total  for  five  years $20,526,959 

Average  for  one  year 4,105,390 

Beside  this  the  following  amounts  have  been  appropriated  from  the  earnings  of  the  Illinois  Cen- 
tral Railroad  Company  for  additions  and  betterments  for  the  decade  ending  1912: 

Year  .\mount  Year  Amount 

1902 $4,340,172  1908 $1,046,963 

1903 4,881,253  1909 232,267 

1904 2,579,329  1910 

1905 1,683,886  1911 164,847 

1906 4,164,739  1912 61,481 

1907 3,987,934 

DIVIDENDS 

Since  1863  the  Illinois  Central  has  paid  dividends  continuously.  It  paid  8%  through  the  de- 
pression of  the  early  '70s,  and  5%  every  year  in  the  decade  beginning  1890.  In  1905  it  began  to  pay 
7%  on  its  outstanding  stock  and  has  continued  this  rate  up  to  the  present  time. 

Dividends  in  1912  were  paid  from  Profit  and  Loss.     Dividend  requirements  were  $7,650,720, 

*  Including  betterments  to  subsidiary  lines. 

[  309  ] 


while  the  company's  income  sheet  showed  a  surplus  available  for  the  same  of  but  $3,466,448.  The 
company  felt  entirely  justified  in  maintaining  the  7%  dividend  rate  in  spite  of  this  unsatisfaclorj' 
showing,  because  it  was  felt  that  the  earning  difficulties  through  which  it  had  passed  were  but  tem- 
porary, and  that  the  fiscal  year  of  1913  would  find  the  company  earning  its  normal  amount. 

The  company  reported  on  June  30,  1912,  a  Profit  and  Loss  of  $2,768,366,  which,  together  with 
an  appropriated  surplus  of  $2,312,588,  was  equivalent  to  4.7%  on  its  outstanding  capital  stock. 

STATISTICS 

Following  are  the  capitalization,  earnings  and  traffic  statistics  of  the  Illinois  Central  Railroad, 
based  on  the  average  miles  operated  for  the  year  1900  and  for  the  years  1905  to  1912  inclusive. 

In  the  following  tables,  in  "Funded  debt,"  are  included  the  bonds  of  the  Illinois  Central,  the 
Chicago,  St.  Louis  &  New  Orleans  Railroad  to  1911.  In  1911  and  1912  the  bonds  of  the  Illinois  Cen- 
tral are  used  alone.  "Rentals"  include  the  net  rentals  of  the  Dubuque  &  Sioux  City  Railroad  up 
to  1911.  In  1911  and  1912  rentals  include  both  net  rentals  of  Dubuque  &  Sioux  City  Railroad,  and 
those  paid  on  the  Chicago,  St.  Louis  &  New  Orleans  Railroad  obligations. 


[  310  ] 


ILLINOIS   CENTRAL  RAILROAD 


Fiscal 

Capital 

Leased 

Funded 

Rentals 

Gross 

Owned  by               Net 

Average 

Extra 

year 

stock 

lines 
stock 

$2,000 

debt 

©5% 
$3,842 

capital 

company              capital 

miles 
operated 

3,845 

main 
track 

1900 

$15,604 

$31,437 

$53,483 

$11,007           $42,476 

248 

1905 

21,728 

2,286 

32,892 

3,357 

60,263 

12,531             47,732 

4,374 

740 

1906 

21,460 

2,260 

32,752 

5,658 

62,130 

13,633             48,497 

4.424 

750 

1907 

21,748 

2,288 

33,421 

5,962 

63,420 

15,013             48,406 

4,370 

751 

1908 

21,502 

2,262 

39,831 

3,313 

66,908 

21,119             45,789 

4,420 

785 

1909 

24,036 

2,199 

43,117 

4,523 

73,875 

21,101             52,776 

4,547 

783 

1910 

24,021 

2,197 

43,088 

1,985 

71,292 

21,148             50,144 

4,550 

790 

1911 

23,952 

2,189 

41,080 

9,402 

76,623 

19,828             56,795 

4,563 

792 

1912 

22,946 

2,097 

38,996 

6.453 

70,492 

17,469             53,024 

4,763 

932 

Fiscal 

Gross 

Maintenance             Transportation 

Net 

Other            Total 

Fixed 

Surplus 

year 

operating 

and  general 

operating 

available 

revenue 

Way             Equipment 

expense 

revenue 

income 

for 

$1,448 

dividends 

1900 

$8,481 

$955 

$3,156 

$2,921 

$635           $3,556           $2,059 

$1,497 

1905 

11,319 

1,394 

1,784 

4,386 

3,755 

031             4,386 

2,069 

2,317 

1906 

11,672 

1,549 

1,741 

4,462 

3,920 

736             4,656 

2,199 

2,457 

1907 

12,954 

1,567 

2,195 

4,896 

4,296 

645             4,941 

2,264 

2,677 

1908 

11,951 

1,529 

2,10C 

4,937 

3,379 

685             4,064 

2,255 

1,809 

1909 

11,804 

1,363 

2,478 

4,608 

3,355 

958             4,313 

2,514 

1,799 

1910 

12,720 

1,672 

2,967 

4,881 

3,200 

1,161             4,361 

2,641 

1,720 

1911 

13,362 

1,649 

2,699 

5,263 

3,751 

1,477             5,228 

2,749 

2,479 

1912 

12,329 

1,614 

2,909 

5,579 

2,227 

1,134             3,361 

2,633 

728 

Fiscal 

Dividends 

Other        Surpl 

us        Operatii 

g           Tota 

Cond 

ucting         Fixed            Gross 

Net 

Per  cent 

year 

charges  to 

expenses      maintenance    transporta-       charges        earnings 

income 

earned  on 

income 

to  gross           to  gross       tion  to  gross      to  gross        to  gross 

to  net 

capital 

earnings          earnings         earnings         earnings         capital 

capital 

8.4% 

stock 

1900 

$858 

$628            $11 

65.5%           28.3%           37 

2%           24.2%         15.8% 

9.6% 

1905 

1,520 

786             11 

66.8 

28.1 

38.7               18.2             19.2 

9.2 

10.7 

1906 

1,503 

941             13 

66.4 

28.2 

38.2               18.8             18.7 

9.6 

11.4 

1907 

1,522 

912           243 

66.9 

29.1 

37.8               17.4             20.5 

10.2 

12.3 

1908 

1,504 

236             69 

71.7 

30.4 

41.3               18.8             17.8 

8.9 

8.3 

1909 

1,682 

51             66 

71.5 

32.5 

39 

0               21.3             15.9 

8.2 

7.5 

1910 

1,681 

39 

74.8 

36.4 

38.4               20.7             17.8 

8.7 

7.1 

1911 

1,676 

36           767 

71.9 

32.5 

39 

4               20.5             17.4 

9.2 

10.3 

1912 

1,606 

13           891 

81.9 

36.6 

45.3               21.3             17.4 

6.3 

3.1 

Fiscal 

Train 

Mamtenance 

Conducting 

Train 

Rate  per 

mile              Freight           Train 

Freight 

Passenger, 

year 

mile 

per  revenue 

ransportation 

mile 

density             load 

to  all 

freight 

earnings 

train  mile 

per  revenue 

earnings 

Per 

Per                                revenue       traffic 

and 

(gross) 

train  mile 

(net)         passenger 

ton                                   tons 

company 

Way      Equipment 

cars 

1900 

$1.29       $ 

221         $.146 

$.482 

$.44            $.0202 

B.0065          890,974         208 

68% 

34,106 

1905 

1.73 

213           .279 

.670 

.57 

.0184 

.0059       1,270,977         319 

66 

57,331 

1906 

1.78 

236           .265 

.679 

.60 

.0195 

.0055       1,408,403         353 

67 

59,066 

1907 

1.87 

226           .317 

.708 

.62 

.0196 

.0058       1,508,206         363 

67 

60,836 

1908 

1.83 

233           .322 

.756 

.52 

.0185 

.0058       1,366,186         351 

67 

64,850 

1909 

1.85 

214           .389 

.723 

.52 

.0183 

.0059       1,328,963         355 

67 

63,912 

1910 

1.88 

247           .439 

.722 

.47 

.0182 

.0059       1,445,998         364 

67 

63,150 

1911 

1.94 

239           .392 

.765 

.54 

.0184 

.0061       1,464,482         361 

67 

61,353 

1912 

1.89 

245           .445 

.854 

.35 

.0188 

.0061       1,303,979         356 

65 

58.806 

*  Deficit. 

[311] 

BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Illinois  Cen- 
tral Railroad  System,  together  with  the  bases  on  which  they 
have  sold  during  the  decade  ending  December  31,  1912: 


ILLINOIS   CENTRAL  RAILROAD 

First  Mortgage  Gold  4s* 

Dated  April  1,  1875  Maturing  April  1.  1951 

Interest  payable  April  1  and  October  1  at  London,  England. 

Coupon  bonds  of  £200. 

Authorized  $2,500,000  Outstanding  $2,500,000 

First  Mortgage  Gold  Sj^sf 

Dated  February  16,  1876  Maturing  December  1,  1950 

Interest  payable  June  1  and  December  1  at  London,  England. 

Coupon  bonds  of  £200. 
Authorized  $1,000,000  Outstanding  $1,000,000 

First  Mortgage  Gold  4s 

Dated  January  1,  1886  Maturing  January  1,  1951 

Interest  payable  January  1  and  July  1  at  115  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $1,500,000  Outstanding  $1,500,000 

These  bonds  sold  in  1902  on  a  3.32  to  3.43  basis 

1903  3.40  3.48 

1904  3.35  3  45 

1905  3.50  3.57 

1906  3.57 

1907  3.85  4.15 

1908  3.85  3.95 

1909  3.70  3.90 

1910  3.72  3.80 

1911  3.85  4.00 

1912  3.80  4.00 

First  Mortgage  Gold  Sj^s 

Dated  January  1,  1886  Maturing  January  1,  1951 

Interest  payable  January  1  and  July  1  at  115  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $2,500,000  Outstanding  $2,499,000 

These  bonds  sold  in  1902  on  a  3.27  to  3.32  basis 

1903  3.40  3.52 

1905  3.37  3.40 

1906  3.52  3.70 

1907  3.47  4.05 

1908  3.77  3.90 

1909  3.75  3.95 

1910  3.88  4.02 

1911  3.95  4.05 
December,  1912  4.10 

*  These  bonds  were  originally  issued  as  6s  to  mature  in  1895,  but  were  extended  to  1951,  and  reduced  from  6s  to  4s. 
t  These  bonds  were  originally  issued  as  5s  to  mature  in  1905,  but  were  extended  to  1950,  and  reduced  from  Ss  to  3}^3. 

[  314  ] 


First  Mortgage  Sterling  3s 

Dated  August  31,  1895  Maturing  March  1, 1951 

Interest  payable  March  1  and  September  1  at  London,  England. 

Coupon  bonds  of  £200,  registerable  as  to  principal  or  fully  registerable. 
Authorized  $2,500,000  Outstanding  $2,500,000 

These  bonds  sold  in  1909  on  a  3.70  basis  (bid) 

1910  3.61 

1911  3.88  (bid) 
December,  1912  4.00  (bid) 

First  Mortgage  Gold  S^s* 

Dated  March  30,  1903  Maturing  April  1.  1951 

Interest  payable  April  1  and  October  1  at  New  York  and  London. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Authorized  $3,000,000  Outstanding  $3,000,000 

Provisions  of      The  company  agrees  that  the  above  bonds  shall  neither  be  extended  nor  renewed.    No  further 
issue:  bonds  may  be  issued,  under  the  terms  of  the  Refunding  Mortgage  4s  of  1955,  a  sufficient  num- 

ber of  which  have  been  reserved  to  retire  the  above  issues. 

Security:  The  above  issues,  to  the  amount  of  $15,000,000,  are  secured  by  a  mortgage  dated  August  10, 

1874.  This  mortgage  was  confirmed  to  the  amount  of  $13,442,000  by  an  instrument  of  "Fur- 
ther Assurance,"  dated  January  16,  1896.  They  are  secured  bj'  a  direct  first  mortgage  on 
705.50  miles  of  the  company's  main  line,  extending  from  Chicago  to  Cairo,  111.,  a  distance  of 
364.73  miles,  and  from  Centralia  Junction  to  East  Dubuque,  111.,  a  distance  of  340.77  miles. 
They  are  also  secured  by  a  first  mortgage  on  land,  buildings,  equipment,  etc. 

Equity:  These  issues  are  prior  in  lien  to  the  Illinois  Central  Collateral  Trust  33/^s  of  1950;  also  to  the 

Refunding  Mortgage  4s  of  1955,  as  mentioned  above. 

Trustee:  United  States  Trust  Company,  New  York. 

These  issues  are  considered  legal  investments  for  savings  banks  in  New  England. 

*  These  bonds  were  originally  issued  as  Sterling  5s,  but  were  changed  to  Gold  Sj^s. 


[315] 


ILLINOIS   CENTRAL   RAILROAD 
Refunding  Mortgage  4s 

Dated  November  1,  1908  Maturing  November  1,  1955 

Interest  payable  May  1  and  November  1,  at  the  Company's  office,  115  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000  and  multiples.    Coupon  and  registered  bonds  interchangeable. 

Authorized  $120,000,000  Outstanding  $32,740,000 

Per  mile  .    .  14,940 

Provisions  of      Of  the  amount  authorized,  $32,740,000  are  in  the  hands  of  the  public  as  above,  $59,026,000  are 
issue:  reserved  to  retire  prior  liens,  and  $28,234,000  are  reserved,  under  restrictions,  for  construction, 

improvements  and  maintenance,  and  for  funding  purposes. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  2,191.49  miles  of  the  company's  road, 

and  on  buildings,  lands  and  yards,  terminals  in  Chicago,  equipment,  and  future  acquisitions. 
They  are  secured  by  a,  first  mortgage  on  179.53  miles,  including  the  176.93  miles  from  India- 
napolis, Ind.,  to  Effingham,  111.,  and  the  Bloomington  Branch.  They  are  secured  by  a  second 
mortgage  on  879.36  miles  which  are  covered  by  the  following  first  mortgages:  Springfield 
Division  31^2?  of  1951;  St.  Louis  Division  &  Terminal  31  ^s  of  1951;  Purchase  Lines  3}^s  of 
1952;  Cairo  Bridge  4s  of  1950;  and  the  Chicago,  Havana  &  Western  5s  of  1952  and  Rantoul  5s 
of  1952,  both  of  which  are  deposited  under  the  Illinois  Central  Collateral  Trust  4s  of  1952. 
They  are  secured  by  a  tJiird  mortgage  on  1,101.61  miles  which  are  covered  by  the  following 
first  mortgages:  Illinois  Central  3s,  33^s  and  4s  of  1950  and  1951;  Belleville  &  Carondelet  6s 
of  1923;  Carbondale  &  Shawneetown  4s  of  1932;  Kankakee  &  Southwestern  5s  of  1921;  and 
the  Chicago,  Madison  &  Northern  5s  of  1935  which  are  deposited  under  the  Collateral  Trust  4s 
of  1952.  They  are  secured  by  a  fourth  mortgage  on  30.99  miles  covered  by  the  first  mortgage 
of  the  St.  Louis  Southern  4s  of  1931. 

The  company  covenants  in  this  indenture  that  it  will  not  extend  or  renew  any  of  the  above 
prior  liens  with  the  exception  of  the  Chicago,  Madison  &  Northern  5s  of  1935,  the  Chicago, 
Havana  &  Western  5s  of  1952  and  the  Rantoul  5s  of  1952,  which  may  be  extended  or  renewed 
so  as  to  mature  not  later  than  April  2,  1952;  and  also  agrees  not  to  issue  or  reissue  any  bonds 
of  the  above  prior  liens,  except  the  Purchase  Lines  First  Sj^s  of  1952,  and  the  St.  Louis 
Division  &  Terminal  First  3s  and  SJ/^s  of  1951,  which  may  be  issued  for  the  purposes  for 
which  they  are  reserved. 

Redemption:      These  bonds  are  redeemable  as  a  whole,  but  not  in  part,  at  lOTj/^  and  interest,  on  November  1, 
1918,  or  any  interest  day  thereafter,  upon  thirteen  weeks'  notice. 


Trustee:  Guaranty  Trust  Company,  New  York. 

These  bonds  sold  in  1908  on  a  3.97  to  4.02  basis 

1909  3.95       4.05 

1910  4.02       4.20 

1911  4.10       4.20 

1912  4.15       4.35 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Vermont, 
Massachusetts  and  Rhode  Island. 


[316] 


ILLINOIS   CENTRAL   RAILROAD 

Louisville,  New  Orleans  &  Texas  Railway 
CoUateral  Trust  4s 

Dated  September  1,  1892  Maturing  November  1,  1953 

Interest  payable  May  1  and  November  1  at  the  Company's  office,  115  Broadway,  New  York. 

Coupon  bonds  of  $1,000  and  $500,  registerable  as  to  principal  or  fully  registerable. 
Kegistered  bonds  of  $1,000  and  $500. 

Authorized  $25,000,000  Outstanding  $25,000,000 

Per  mile  .    .  31,330 

Security:  These  bonds  are  secured  by  deposit  with  the  trustee  of  (1)  $16,832,000  (the  entire  issue  out- 

standing) Louisville,  New  Orleans  &  Texas  Railway  4s  of  1934,  which  are  secured  by  a  first 
mortgage  on  798  miles  of  road;  (2)  $9,104,000  (the  entire  issue  outstanding)  Louisville,  New 
Orleans  &  Texas  Railway  5s  of  1934,  which  are  secured  by  a  second  mortgage  on  the  same 
mileage;  (3)  $6,553,277  Louisville,  New  Orleans  &  Texas  Land  Grant  6s  of  1934,  which  are 
secured  by  a  first  mortgage  on  lands  in  Mississippi  not  required  in  the  operation  of  the  road. 

In  its  indenture  the  Illinois  Central  Railroad  Company  agrees  to  deposit  with  the  trustee  of 
this  issue  any  additional  bonds  of  the  Louisville,  New  Orleans  &  Texas  Railway  which  shall 
be  acquired.  It  further  agrees  that  if  the  land,  which  secures  the  Land  Grant  Bonds  deposited 
as  collateral  under  this  issue,  is  sold,  the  latter  may  be  redeemed  and  cancelled  by  the  pro- 
ceeds of  such  sales,  and  the  proceeds  may  be  employed  by  the  Illinois  Central  Railroad  Company 
for  additions  and  betterments  to  raUroad  property  mortgaged  to  secure  the  above  Collateral 
Trust  4s. 

Trustee:  United  States  Trust  Company,  New  York. 

The  Louisville,  New  Orleans  &  Texas  Railway  was  chartered  under  the  laws  of  the  State  of 
Illinois  August  12,  1884,  as  the  result  of  a  consolidation  of  the  following  companies,  —  the  New 
Orleans  &  Mississippi  Valley  Railroad,  the  New  Orleans,  Baton  Rouge,  Vicksburgh  &  Memphis 
Railroad,  the  Memphis  &  Vicksburgh  Railroad,  and  the  Tennessee  Southern  Railroad.  In  November, 
1884,  the  main  line  of  the  road  was  opened  for  traffic.  In  1892  the  Illinois  Central  Railroad  Com- 
pany purchased  control  of  the  company  for  $5,000,000  cash  and  $20,000,000  4%  bonds  secured  by 
pledge  of  the  purchased  securities.  That  same  year  the  road  was  merged  into  the  Yazoo  &  Missis- 
sippi Valley  Railroad  under  the  name  of  the  latter. 

These  bonds  sold  in  1902  on  a  3.65  to  3.88  basis 


1903 

3.70 

3.95 

1904 

3.74 

3.90 

1905 

3.70 

3.85 

1906 

3.70 

3.95 

1907 

3.85 

4.20 

1908 

3.90 

4.05 

1909 

3.90 

4.05 

1910 

3.95 

4.15 

1911 

4.05 

4.25 

1912 

4.00 

4.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 

[317] 


ILLINOIS   CENTRAL  RAILROAD 

Louisville  Division  and  Terminal  First  Mortgage  3>2S 

Dated  September  15,  1897  Maturing  July  1,  1953. 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  115  Broadway,  New  York. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal  only,  or  fully  registerable. 

Authorized  $25,000,000  Outstanding  $23,888,000 

Per  mile  .    .  39,950 

Provisions  of      Of  the  amount  authorized,  $23,888,000  are  outstanding  as  above,  and  the  balance,  $1,112,000, 
issue:  have  been  reserved  to  acquire  the  Cecilia  Branch,  free  from  encumbrances. 

Security :  These  bonds  are  secured  by  a  joint  indenture  and  purchase  money  mortgage  executed  by  the 

Chicago,  St.  Louis  &  New  Orleans  Railroad  and  the  Illinois  Central  Railroad,  and  also  by  a 
mortgage  dated  June  28,  1898.  They  are  secured  by  a  first  mortgage  on  598.05  miles  of  road, 
including  the  line  from  Memphis,  Tenn.,  to  Hodgenville,  Ky.,  364  miles.  They  are  further 
secured  by  a  first  mortgage  on  the  elevated  railroad  in  Louisville,  Ky.,  and  the  terminal  prop- 
erties in  Louisville,  Owensboro,  Paducah,  Evansville,  Ind.,  and  Memphis.  Included  in  the 
mortgage  are  the  equipment  of  the  road  in  question,  and  future  acquisitions. 

Trustee:  United  States  Trust  Company,  New  York. 

The  above  mileage  covered  by  the  first  mortgage  of  this  issue  is  that  of  the  Chicago,  St.  Louis 
&  New  Orleans  Railroad,  which  is  operated  by  the  Illinois  Central  Railroad  Company  under  a  four- 
hundred-year  lease  at  a  rental  equal  to  the  interest  on  the  former's  bonds,  taxes,  and  a  4%  guarantee 
on  its  capital  stock. 

The  bonds  sold  in  1902  on  a  3.45  to  3.55  basis 


1903 

3.55 

3.88 

1904 

3.63 

3.80 

1905 

3.67 

3.75 

1906 

3.75 

3.89 

1907 

4.00 

4.05 

1908 

3.95 

4.25 

1909 

3.88 

4.10 

1910 

4.05 

4.15 

1911 

4.15 

4.27 

1912 

4.15 

4.30 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachusetts, 
Connecticut  and  Rhode  Island. 


[318] 


ILLINOIS   CENTRAL  RAILROAD 

Collateral  Trust  4s 

Dated  March  31,  1888  Maturing  April  1,  1952 

Interest  payable  April  1  and  October  1  at  the  Company's  oflBce,  115  Broadway,  New  York. 

Coupon  bonds  of  $500  and  $1,000  or  their  equivalent  in  pounds  sterling. 

Registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000  or  equivalent  in  pounds  sterling. 

Authorized  $15,000,000  Outstanding  $15,000,000 

Per  mile  .    .  17,380 

Security:  The  above  bonds  are  secured  by  a  first  collateral  lien  on  seven  issues  of  first  mortgage  bonds, 

aggregating  $16,350,000,  and  are  in  effect  a  first  mortgage  thereby  on  863.03  miles  of  road. 
The  collateral  behind  this  issue  is  as  follows : 

$1,750,000  Canton,  Aberdeen  &  Nashville  First  5s. 
2,800,000  Yazoo  &  ^Mississippi  Valley  First  5s 
2,500,000  Chicago,  Havana  &  Western  Fu-st  5s. 
1,000,000  Rantoul  Railroad  First  5s. 

830,000  Cedar  Rapids  &  Chicago  First  5s. 
3,100,000  Cherokee  &  Dakota  First  5s. 
4,370,000  Chicago,  Madison  &  Northern  First  5s. 
All  the  above  bonds  thus  deposited  with  the  trustee  are  prior  in  hen  to  the  Illinois  Central 
Refunding  4s  of  1955,  a  sufficient  number  of  which  have  been  reserved  to  retire  these  at  maturity. 
They  are  closed  mortgages. 

Trustee:  United  States  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  3.70  to  3.80  basis 


1903 

3.80 

4.00 

1904 

3.73 

3.88 

1905 

3.63 

3.77 

1906 

3.65 

3.95 

1907 

3.88 

4.15 

1908 

3.90 

4.15 

1909 

3.88 

4.05 

1910 

3.96 

4.12 

1911 

4.05 

4.10 

1912 

4.00 

4.12 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


[  319 


ILLINOIS   CENTRAL  RAILROAD 
Purchase  Lines  First  Mortgage  33^s 

Dated  June  30,  1904  Maturing  July  1,  1952 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  115  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000  and  multiples. 

Authorized  $20,000,000  Outstanding  $12,000,000 

Per  mile  .    .  16,040 

Provisions  of      Of  the  amount  authorized,  $12,000,000  are  in  the  hands  of  the  public  and  $2,662,000  have 
issue:  been  exchanged  for  Illinois  Central  4s  of  1955  and  cancelled.    The  balance,  $5,388,000,  has 

been  reserved  to  retire  underlying  liens. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  748.36  miles  of  road,  including  its  equip- 

ment, and  all  future  acquisitions.  They  are  secured  by  a  first  mortgage  on  385.8  miles  of  road, 
including  the  line  from  Pekin  to  Evansville,  111.,  and  branches.  They  are  secured  by  a  second 
mortgage  on  362.56  miles,  co\ered  by  the  first  mortgages  of  the  Kankakee  and  Southwestern 
First  5s  of  1921  and  the  Chicago,  Madison  &  Northern  First  5s  of  1935,  the  latter  being  all 
deposited  under  the  Illinois  Central  Collateral  Trust  4s  of  1952. 

Equity:  These  bonds  are  prior  in  lien  to  the  Illinois  Central  Refunding  4s  of  1955,  a  sufficient  number 

of  which  have  been  reserved  to  retire  these  bonds. 

Trustee:  United  States  Trust  Company,  New  York,  and  J.  E.  Williamson,  Esq. 

These  bonds  were  sold  in  1909  on  a  4.10  basis 

1910  4.15  to  4.25 

1911  4.10       4  20 

1912  4.20 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Vermont, 
Massachusetts  and  Rhode  Island. 


ILLINOIS   CENTRAL  RAILROAD 
Springfield  Division  First  Mortgage  33^s 

Dated  January  1,  1898  Maturing  January  1,  1951 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  115  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $2,000,000  Outstanding  $2,000,000 

Per  mile  .    .  17,940 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  all  the  property  and  franchises  of  the 

Chicago  &  Springfield  Railroad,  including  the  road  from  Oilman,  111.,  to  Springfield,  111.47 
miles,  and  all  branches,  lands,  buildings,  equipment  and  income. 
[  320  ] 


These  bonds  are  secured  by  a  joint  indenture  by  the  Illinois  Central  Railroad  and  the  Chicago 
&  Springfield  Railroad  Companies. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Illinois  Central  Refunding  4s  of  1955,  a  sufficient  num- 

ber of  which  have  been  reserved  to  provide  for  the  retirement  of  these  bonds. 

Trustee:  United  States  Trust  Company,  New  York. 

The  Chicago  &  Springfield  Railroad  Company  conveyed  its  property  by  deed  dated  October 
15,  1902,  to  the  Illinois  Central  Railroad  Company. 

These  bonds  sold  in  1909  on  a  4.15  basis  (bid) 

1910  4.87 

1911  4.35  (bid) 

1912  4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


ILLINOIS   CENTRAL  RAILROAD 
St.  Louis  Division  &  Terminal  First  Mortgage  3s  and  3>2S 

Dated  July  1,  1897  Maturing  July  1,  1951 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  115  Broadway,  New  York. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  (3s)  $5,000,000  Outstanding  (3s)     $4,998,000 

(3i^s)  10,000,000  (3Ks)       8,377,000 

Per  mile  ....  56,000 

Provisions  of      Of  the  amount  authorized,  $13,375,000  are  outstanding  as  above,  $1,547,000  have  been  re- 
issue: served  to  retire  prior  liens,  and  the  balance,  $78,000,  has  been  exchanged  for  Illinois  Central 
Refunding  4s  of  1955,  and  cancelled. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  the  239.04  miles  of  road,  the  property 

of  the  St.  Louis,  Alton  &  Terre  Haute  Raih-oad,  together  with  all  its  branches,  lands,  buildings, 
equipment,  and  franchises  now  owTied  or  hereafter  acquired.  They  are  secured  by  a  first  mort- 
gage on  175  miles,  including  the  line  from  East  St.  Louis  to  Eldorado,  111.,  121  miles.  They 
are  further  secured  by  a  second  mortgage  on  33.55  miles  of  road  covered  by  the  first  liens  of 
the  Belleville  &  Carondelet  First  6s  of  1923,  and  the  Carbondale  &  Shawneetown  First  4s  of 
1932,  and  a  third  mortgage  on  30.99  miles  covered  by  St.  Louis  Southern  First  4s  of  1931 
and  Second  Income  5s  of  1931. 

Equity :  These  bonds  are  prior  in  lien  to  the  Illinois  Central  Refunding  4s,  a  sufficient  number  of  which 

have  been  reserved  to  provide  for  the  retirement  of  this  issue. 

Trustee:  United  States  Trust  Company,  New  York. 

The  St.  Louis,  Alton  &  Terre  Haute  Railroad  Company  was  chartered  as  the  Terre  Haute  & 
Alton  Railroad  Company  in  Illinois  in  January,  1851,  to  build  a  railroad  from  Terre  Haute  to 

[321  ] 


Alton,  m.  Work  was  begun  in  1852  and  completed  March  1,  1856.  In  1860  the  company  became 
financially  embarrassed  and  was  sold  under  foreclosure  to  a  new  company  formed  under  an  act  of  the 
Illinois  Legislature  in  February,  1861.  The  new  company  took  charge  in  June,  1862.  On  June  1, 
1867,  the  company's  lines  were  leased  for  999  years  to  the  Indianapolis  &  St.  Louis  Railroad  which 
became  insolvent  in  1878,  and  a  new  lease  was  granted  to  the  reorganized  company,  known  as  the 
Indianapolis  &  St.  Louis  Hallway  Company. 

By  a  deed  dated  February  14,  1904,  the  St.  Louis,  Alton  &  Terre  Haute  Railroad  Company 
conveyed  its  property  to  the  Illiuois  Central  RaUroad  Company. 


The  3s  of  1951  sold  m  1902  on 

a  3.55  basis 

1903 

3.63  to  3.80 

1904 

3.63 

3.97 

1905 

3.60 

3.73 

1906 

3.80 

3.95 

1907 

4.05 

1908 

4.02 

4.20 

1909 

4.10 

(bid) 

1910 

4.27 

1911 

4.27 

1912 

4.30 

he  3Hs  of  1951  .sold  in  1902  on  a  3.45  to  3.55 

1903 

3.05 

3.88 

1904 

3.72 

3.82 

1905 

3.67 

3.85 

1906 

3.80 

1907 

3.95 

4.40 

1908 

3.95 

4.60 

1909 

3.95 

4.08 

1910 

4.05 

1911 

4.15 

4.22 

1912 

4.15 

4.35 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  Massachusetts,  New  Hamp- 
shire, Vermont  and  Rhode  Island. 


KANKAKEE   &   SOUTHWESTERN   RAILROAD 

First  Mortgage  Currency  5s 

Dated  August  1,  1881  Maturing  August  1,  1921 

Interest  payable  February  1  and  August  1  at  the  Company's  office,  115  Broadway,  New  York. 

Registered  bonds  of  $1,000. 

Authorized  $1,000,000  Outstanding  $968,000 

Per  mile  .    .         7,390 

Provisions  of      Under  the  terms  of  the  mortgage  of  the  Illinois  Central  Refunding  4s  of  1955  no  more  of  these 
issue:  bonds  may  be  issued.    A  sufficient  number  of  these  Refunding  4s  have  been  reserved  to  provide 

lor  the  retirement  of  this  issue. 

[  322  ] 


Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  road  of  the  Kankakee  &  Southwestern 

Raiboad  Company,  131.26  miles,  together  witli  all  branches  and  extensions  hereafter  con- 
structed, also  lands,  buildings,  equipment  now  owned  or  hereafter  acquired,  and  franchises 
and  incomes. 

Equity:  These  bonds  are  prior  in  lien  to  the  Purchase  Lines  3^^s  of  1952,  as  well  as  the  Refunding  4s 

of  1955  mentioned  above. 

Trustees:  The  trustees  of  this  issue  at  present  named  are  L.  V.  F.  Randolph,  Esq.,  and  Stuyvesant 

Fish,  Esq. 

The  Kankakee  &  Southwestern  Railroad  Company  conveyed  its  property  to  the  Illinois  Central 
Railroad  Company  by  a  deed  dated  October  15,  1902. 

These  bonds  were  quoted  in  1909  on  a  4.10  basis  (bid) 

1910  4.22 

1911  4.37 
December,  1912  4.70 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


ILLINOIS   CENTRAL   RAILROAD 

Cairo  Bridge  Mortgage  4s 

Dated  June  1,  1892  Maturing  December  1,  1950 

Interest  payable  June  1  and  December  1  at  the  Company's  office,  115  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Authorized  $3,000,000  Outstanding  $3,000  000 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  $3  000,000  Chicago,  St.  Louis  &  New  Orleans- 

Cairo  Bridge  First  5s  (the  entire  issue),  which  makes  them,  in  effect,  a  first  mortgage  on  the 
bridge  and  its  leases  and  approaches.  The  bridge  is  leased  until  July  1,  2282,  at  an  annual 
rental  of  $180  000  and  taxes. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Illinois  Central  Refunding  4s  of  1955,  a  sufficient  num- 

ber of  which  have  been  reserved  to  provide  for  the  retirement  of  this  issue,  and  the  company 
agrees  that  it  will  not  suffer  the  same  to  be  extended  or  renewed. 

Trustee:  United  States  Trust  Company,  New  York. 

These  bonds  sold  in  1903  on  a  3.70  basis 

1906  3.77 

1907  3.87 

1909  4.00 

1910  4.25  (bid) 

1911  4.12  to  4.20 

1912  4  27 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Vermont,  Massachu- 
setts and  Rhode  Island. 

[  323  ] 


ILLINOIS   CENTRAL  RAILROAD 

Sterling  Trust  Mortgage  3)28 

Dated  July  1,  1886  Maturing  July  1,  1950 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  115  Broadway,  New  York, 

and  Baring  Brothers,  London. 

Coupon  bonds  of  $1,000  and  £200. 
Registered  bonds  of  $1,000  and  £200. 

Authorized  $9,000,000  Outstanding  $5,266,000 

Provisions  of      Under  the  terms  of  the  mortgage  of  the  IlUnois  Central  Refunding  4s  of  1955,  no  further  bonds 
issue :  may  be  issued,  and  a  sufficient  number  of  the  same  have  been  reserved  to  retire  those  already 

issued  at  maturity. 

Security :  These  bonds  are  secured  by  a  first  collateral  lien  by  deposit  with  the  trustee  of  an  equal  amount 

($5,266,000)  of  Chicago,  St.  Louis  &  New  Orleans  Consolidated  5s  of  1951.  They  are  further 
secured  by  a  direct  second  mortgage  on  705.5  miles  of  road,  covered  by  the  first  lien  of  the  com- 
pany's first  mortgage,  dated  August  10,  1874.  The  company  covenants  "that  no  mortgage 
shall  hereafter  be  made  upon  the  Illinois  Central  Railroad  and  the  Chicago,  St.  Louis  &  New 
Orleans  Railroad,  to  secure  the  payment  of  any  other  indebtedness,  imtil  the  bonds  of  this 
series  shall  be  secured  by  a  first  mortgage  lien  upon  each,  to  be  duly  authorized  by  the  holders 
of  a  majority  of  the  capital  stock  of  the  companies  having  priority  to  any  other  mortgage  that 
may  hereafter  be  executed." 

Equity:  These  bonds  are  prior  in  lien  to  the  Illinois  Central  Refunding  4s  of  1955,  a  sufficient  number 

of  which  have  been  reserved  to  provide  for  the  retirement  of  this  issue,  and  the  company  agrees 
that  it  will  not  suffer  any  of  the  said  bonds  to  be  extended  or  renewed. 

Trustee:  United  States  Trust  Company,  New  York. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


ILLINOIS   CENTRAL  RAILROAD 
Western  Line  First  Mortgage  4s 

Dated  February  1,  1895  Maturing  August  1,  1951 

Interest  payable  February  1  and  August  1  at  the  Company's  office,  115  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $10,000,000  Outstanding  $5,425,000 

Per  mile   .    .  24,880 

Provisions  of      Of  the  amount  authorized,  $5,425,000  are  outstanding,  as  above,  and  the  balance,  $4,575,000, 
issue:  has  been  reserved  to  acquire,  free  from  incumbrances,  the  184.26  miles  of  road  covered  by 

$2,000,000  Iowa  Falls  &  Sioux  City  First  7s  of  1917. 
[  324  ] 


Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  extending  from  Du- 

buque to  Iowa  Falls,  la.,  142  miles,  and  from  Cedar  Falls,  la.,  to  the  Minnesota  State  Line, 
76  miles,  together  with  the  roadbed,  depots,  and  other  buildings  now  owned  or  hereafter 
acquired  or  provided  for  the  use  of  the  railroad. 

Trustee:  United  States  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  3.37  to  3.56  basis 


1903 

3.52 

3.85 

1904 

3.67 

3.75 

1905 

3.60 

1906 

3.65 

3.90 

1907 

3.90 

4.10 

1908 

3.95 

1909 

3.95 

4.20 

1910 

4.10 

4.25 

1911 

4.17 

4.23 

1912 

4.20 

4.40 

These  bonds  are  considered  a  legal  investment  for  savangs  banks  in  Maine,  New  Hampshire,  Massachu- 
setts, Connecticut  and  Rhode  Island. 


ILLINOIS   CENTRAL  RAILROAD 

Omaha  Division  First  Mortgage  3s 

Dated  July  20,  1900  Maturing  August  1,  1951 

Interest  payable  February  1  and  August  1  at  the  Company's  office,  115  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000. 

Authorized  $5,000,000  Outstanding  $5,000,000 

Per  mile  .    .  37,570 

Security:  These  bonds  were  issued  by  the  Illinois  Central  Railroad  Company,  and  are  secured  by  a 

first  mortgage  executed  by  the  Dubuque  &  Sioux  City  Railroad  Company  on  its  line  extending 
from  Tara  to  Council  Bluflfs,  133.38  miles,  including  all  the  depots,  and  other  buildings  and 
structures  and  improvements  purchased  or  provided  for,  or  which  may  be  hereafter  purchased 
or  provided  between  these  points,  also  all  franchises. 

Trustee :  United  States  Trust  Company,  New  York. 

The  Dubuque  &  Sioux  City  Raihoad  Company  was  chartered  November  24,  1856,  as  the  Du- 
buque &  Pacific  Raihoad  Company.  Its  road,  80  miles  completed,  was  sold  under  foreclosure  August 
21,  1860,  and  the  present  company  was  organized  at  that  time.  It  was  opened  to  its  present  terminus 
in  1866.  A  controlling  interest  in  this  road  was  acquired  by  the  Illinois  Central  Railroad  Company 
in  October,  1888,  and  it  was  subsequently  consolidated  with  the  Cedar  Rapids  &  Chicago  Railroad, 
the  Iowa  Falls  &  Sioux  City  Railroad,  and  the  Cherokee  &  Dakota  Railroad  Companies,  and  the 
capital  stock  increased  to  $8,000,000.  The  Illinois  Central  Railroad  Company  owns  all  but  $33,300 
of  its  capital  stock  outstanding. 

[325  ] 


These  bonds  sold  in  1904  on  a  3.60  to  3.70  basis 


1905 

3.63 

1906 

4.05 

1909 

4.05 

1910 

4.13 

1911 

4.25 

1912 

4.30 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts, Connecticut  and  Rhode  Island. 


ILLINOIS   CENTRAL  RAILROAD 
Litchfield  Division  First  Mortgage  3s 

Dated  October  1,  1900  Maturing  January  1,  1951 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  115  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000  and  multiples. 


Authorized  $4,000,000 


Outstanding  $3,235,000 
Per  mile  .    .  33,000 


Security : 


Equity: 
Trustee: 


These  bonds  are  secured  by  a  first  mortgage  on  the  railway  formerly  belonging  to  the  St.  Louis, 
Peoria  &  Northern  Railway  Company,  extending  from  East  St.  Louis  to  Springfield,  111.,  and 
all  lands,  buildings,  properties  acquired,  provided  or  constructed,  or  hereafter  acquired,  to- 
gether with  trackage  rights  and  the  benefits  from  contracts  which  the  railway  had  with  other 
corporations,  and  equipment  now  owned  or  hereafter  acquired. 

The  above  bonds  are  prior  in  lien  to  the  Illinois  Central  First  Lien  Equipment  4s  of  1923. 

Farmers'  Loan  &  Trust  Company. 


These  bonds  sold  in  1909  on  a  4.10  basis  (bid) 

1910  4.37  (bid) 

1911  4.30 

1912  4.30  to  4.45 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts, Connecticut  and  Rhode  Island. 


[  326  ] 


BELLEVILLE   &   CARONDELET   RAILROAD 
First  Mortgage  Currency  6s 

Dated  June  1,  1883  Maturing  June  1,  1923 

Interest  payable  June  1  and  December  1  at  115  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $500,000  Outstanding  $470,000 

^er  mile  .    .       27,170 

Security:  The  above  bonds   are  secured  by  a  first  mortgage  on  the  company's  road,  extending  from 

Belleville  to  Carondelet,  111.,  17.3  miles,  including  all  lands,  buildings,  equipment,  franchises, 
etc.  now  owned  or  hereafter  acquired. 

These  bonds  were   ASSUMED   by  the  St.  Louis,  Alton  &  Terre  Haute  Railroad  Company, 
which  conveyed  its  property  to  the  Illinois  Central  Railroad  Company  in  1904. 

Equity:  These  bonds  are  prior  in  lien  to  $13,375,000  IlUnois  Central,  St.  Louis  Division  &  Terminal 

3s  and  3j^s  of  1951,  and  to  the  Illinois  Central  Refunding  4s  of  1955,  provision  being  made 
under  both  to  provide  for  the  retirement  of  this  issue. 

Under  the  terms  of  the  mortgage  of  the  Illinois  Central  Refunding  4s  of  1955,  no  further  bonds 
may  be  issued  than  are  outstanding  as  above. 

The  Belleville  &  Carondelet  Railroad  was  consolidated  into  the  St.  Louis,  Alton  &  Terre  Haute 
Railroad  Company  in  1897,  and  the  latter  conveyed  its  property  to  the  Illinois  Central  Railroad 
Company  in  1904. 

These  bonds  sold  in  1904  on  a  4.13  basis 
1905  4.25 

1909  4.00 

1910  4.25 

1911  4.27  (bid) 
December,  1912           5.00  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and 
Rhode  Island. 


CARBONDALE   &   SHAWNEETOWN   RAILROAD 

First  Mortgage  4s 

Dated  March  1,  1887  Maturmg  March  1,  1932 

Interest  payable  March  1  and  September  1  at  1 15  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $250,000  Outstanding  $241,000 

Per  mile  .    .       14,830 

Provisions  of      Under  the  terms  of  the  mortgage  of  the  Illinois  Central  Refunding  4s  of  1955  no  further  bonds 
issue:  than  those  at  present  outstanding  may  be  issued. 

[  327  ] 


Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Carbondale  to 

Marion,  111.,  16.25  miles,  together  with  the  equipment  of  the  line  and  future  acquisitions. 

These  bonds  were  ASSUMED  by  the  St.  Louis,  Alton  &  Terre  Haute  Railroad  Company, 
which  conveyed  its  property  to  the  Illinois  Central  in  1904. 

Equity:  These  bonds  are  prior  in  hen  to  $13,375,000  Illinois  Central,  St.  Louis  Division  &  Terminal 

3s  and  33^s  of  1951,  and  also  the  Ilhnois  Central  Refunding  4s  of  1955,  provision  being  made 
under  both  to  provide  for  the  retirement  of  this  issue. 

Trustee:  Mercantile  Trust  Company,  New  York. 

These  bonds  sold  in  1907  on  a  4.20  basis 

1908  4.00  to  4.20  basis 

1909  4.13   4.25 

1910  4.05   4.35 

1911  4.37  (bid) 

1912  4.45   4.62 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and 
Rhode  Island. 


ST.   LOUIS   SOUTHERN  RAILROAD 

First  Mortgage  4s 

Dated  September  1,  1886  Maturing  September  1,  1931 

Interest  payable  March  1  and  September  1  at  115  Broadway,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $550,000 


Outstanding  $538,000 
Per  mile  .    .       17,350 


Provisions  of      Under  the  terms  of  the  mortgage  of  the  Illinois  Central  Refunding  4s  of  1955,  no  further  bonds 
issue:  than  those  at  present  outstanding  may  be  issued. 


Security : 


Equity: 


Trustee: 


The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Pinkneyville 
to  Murphysboro,  111.,  30.99  miles,  together  with  equipment  and  all  future  acquisitions. 

These  bonds  were  ASSUMED  by  the  St.  Louis,  Alton  &  Terre  Haute  Railroad  Company, 
which  conveyed  its  property  to  the  Illinois  Central  in  1904. 

These  bonds  are  prior  in  lieu  to  $13,375,000  Illinois  Central  St.  Louis  Division  &  Terminal 
3s  and  33-28  of  1951,  and  also  the  Ilhnois  Central  Refunding  4s  of  1955,  provision  being  made 
under  both  to  provide  for  the  retirement  of  this  issue. 

Mercantile  Trust  Company,  New  York. 


The  St.  Louis  Southern  Railroad  Company  was  consolidated  into  the  St.  Louis,  Alton  &  Terre 
Haute  Railroad  Company  in  1897,  and  the  latter  conveyed  its  property  to  the  Illinois  Central  Rail- 
road Company  in  1904. 

[  328  1 


These  bonds  sold  in  1902  on  a  3.75  to  3.95  basis 


1904 

3.82   3.8 

1907 

4.20 

1908 

4.15 

1909 

4.20  (bid) 

1910 

4.35  (bid) 

1911 

4.70  (bid) 

December,  1912 

4.35  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


IOWA  FALLS   &   SIOUX  CITY  RAILROAD 
First  Mortgage  Currency  7s 

Dated  May  1,  1869  Maturing  October  1,  1917 

Interest  payable  April  1  and  October  1  at  115  Broadway,  New  York. 

Coupon  bonds  of  $500  and  $1,000. 

Authorized  $3,000,000  Outstanding  $2,800,000 

Per  mile  .    .  15,200 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Iowa  Falls  to 

Sioux  City,  la.,  184.26  miles,  together  with  lands  and  equipment,  etc. 

These  bonds  have  been  ASSUMED   by  the  Dubuque  &  Sioux  City  Railroad  Company. 

The  Iowa  Falls  &  Sioux  City  Railroad  Company  was  organized  October  1,  1867,  and  the  road 
was  completed  in  1870,  being  thereafter  operated  bj'  the  Illinois  Central  Railroad  Company  under  a 
lease  which  expired  October  1,  1887.  The  company  was  consolidated  in  1889  mto  the  Dubuque  & 
Sioux  City  Railroad  Company,  all  the  capital  stock  of  which  with  the  exception  of  $33,300  is  owned 
by  the  Illinois  Central  Railroad  Company. 

These  bonds  were  quoted  in  1909  on  a  4.70  basis  (bid) 

1910  4.63 

1911  4.63 
December,  1912  5.37 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


[  329  ] 


CHICAGO,   ST.   LOUIS   &  NEW   ORLEANS   RAILROAD 
Consolidated  Mortgage  33^^s  and  5s 


Dated  March  15,  1881 

Interest  payable  June  15  and  December  15 


Maturing  June  15,  1951 
115  Broadway,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 


Authorized  $18,000,000 


Outstanding  (5s)  $16,635,000 

(3l^s)       1,359,000 

Per  mile  ....  31,790 


Provisions  of      Of  the  amount  outstanding,  $5,266,000  5s  have  been  pledged  to  secure  the  Illinois  Central 
issue:  Sterling  3}^^s  of  1950.     In  addition,  $6,000  have  been  reserved  for  overdue  bonds. 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  company's  road,  on  566.08  miles,  includ- 

ing the  line  from  East  Cairo,  Ky.,  to  New  Orleans,  La.,  together  with  the  equipment  of  the 
line  and  all  future  acquisitions. 

The  Consolidated  5s  are   GUARANTEED   as  to  principal  only,  and  the  S^s  are  guaranteed 
as  to  both  principal  and  interest  by  endorsement. 

The  Consolidated  3Hs  of  1951  sold  in  1902  on  a  3.30  basis 

1904  3.58  to  4.12  basis 

1907  4.05 

1909  3.98 

1910  4.00 

1911  4.30  (bid) 
December,  1912  4.60  (bid) 

The  Consolidated  5s  of  1951  sold  in  1902  on  a  3.63  to  3.78  basis 


1903 

3.85 

4.15 

1905 

3.85 

3.95 

1906 

3.88 

4.02 

1907 

4.10 

4.65 

1908 

4.15 

4.35 

1909 

4.00 

4.13 

1910 

4.05 

4.25 

1911 

4.13 

4.30 

1912 

4.15 

4.30 

The  Consolidated  5s  are  considered  a  legal  investment  for  savings  banks  in  Connecticut  and  Rhode  Island. 
The  Consolidated  33^s  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Connec- 
ticut and  Rhode  Island. 


330 


CHICAGO,   ST.  LOUIS   &  NEW   ORLEANS   RAILROAD 
Memphis  Division  First  Mortgage  4s 


Dated  April  3,  1889 


Maturing  December  1,  1951 


Interest  payable  June  1  and  December  1  at  115  Broadway,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 


Authorized  $3,500,000 


Security : 


Trustee: 


Outstanding  $3,500,000 
Per  mile  .    .  35,000 


The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Memphis,  Tenn., 
to  Granada,  Miss.,  100  miles,  together  with  equipment  and  future   acquisitions. 

These  bonds  are  GUARANTEED   as  to    PRINCIPAL   and    INTEREST    by  the  Illinois 
Central  Railroad  Company  by  endorsement. 

United  States  Trust  Company,  New  York. 


These  bonds  sold  in  1902  on 

a  3.70  to  3.75  basis 

1903 

3.72 

3.90 

1904 

3.60 

3.82 

1905 

3.53 

1906 

3.95 

1907 

3.97 

4.05 

1908 

4.00 

1909 

4.15 

(bid) 

1910 

4.13 

1911 

4.25  (bid) 

1912 

4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


CHICAGO,   MEMPHIS   &   GULF   RAILROAD 

First  Mortgage  Gold  5  s 

Dated  January  1,  1910  Maturing  January  1,  1940 

Interest  payable  January  1  and  July  1  at  Bankers'  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Registered  bonds  of  $1,000  and  multiples. 

Coupon  and  registered  bonds  are  interchangeable. 


Authorized  $10,000,000 


Outstanding  $735,000 


Provisions  of     Of  the  total  amount  authorized  $735,000  were  outstanding  as  above,  $1,750,000  have  been 
issue:  reserved  for  terminals,  and  $7,515,000  have  been  reserved  for  extensions,  etc.  at  85%  of  the 

cost,  but  not  to  exceed  $20,000  per  mile. 
[331  ] 


Security:  The  above  bonds  are  a  direct  obligation  of  the  Chicago,  Mempliis  &  Gulf  Railroad  Com- 

pany, and  are  secured  by  a  first  mortgage  upon  its  entire  property,  which  includes  a  line 
from  Dyersburg,  Tenn.,  to  Hickman,  Ky.,  52  miles. 

These  bonds  have  been  ASSUMED  by  the  Illinois  Central  Railroad  Company. 

Redemption:      The  above  bonds  are  redeemable  as  a  whole  at  105  and  interest  on  any  interest  date,  upon 
three  months'  notice. 

Trustee:  Bankers'  Trust  Company,  New  York. 

The  Chicago,  Memphis  &  Gulf  Railroad  was  chartered  in  December,  1904,  as  the  Dyersburg 
Northern  Railroad  Company.  Its  name  was  changed  to  the  above  in  November,  1909,  and  in  1913 
its  pro])erty  was  purchased  by  the  Illinois  Central  Railroad  Company,  the  latter  assuming  its  funded 
obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


ILLINOIS   CENTRAL  RAILROAD 

Secured  Gold  4)^%  Notes 

Dated  July  1,  1912  Maturing  July  1,  1914 

Interest  payable  January  1  and  July  1  at  115  Broadway,  New  York. 

Coupon  notes  of  $1,000,  $5,000  and  $10,000. 
Authorized  $15,000,000  Outstanding  $15,000,000 

The  proceeds  of  this  issue  were  used  to  acquire  a  like  amount  of  Central  of  Georgia  Railway 
First,  Second,  and  Third  Preference  Income  5s  of  1945. 

Security:  These   notes   are   a   direct  obUgation  of  the  company  and  are  secured  by   approximately 

$14,000,000  of  the  above-mentioned  bonds  purchased,  together  with  about  $5,000,000,  par 
value,  of  Central  of  Georgia  Railway  capital  stock. 

Redemption:      The  above  notes  are  pedeemable,  as  a  whole,  on  July  1,  1913,  or  January  1,  1914,  upon  three 
months'  notice  at  lOOj^  and  interest. 

Trustee:  Farmers'  Loan  and  Trust  Company,  New  York. 


332  ] 


ILLINOIS   CENTRAL   RAILROAD 
Equipment  Trust  43/2%  Certificates 

Dated  February  1,  1913  Maturing  $400,000  each  February  1  and 

August  1  to  February  1,  1923,  inclusive. 

Interest  payable  February  1  and  August  1  at  New  York. 

Notes  of  $1,000,  registerable  as  to  principal. 
Authorized  $8,000,000  Outstanding  $8,000,000 

Security:  The  above  certificates  are  a  direct  obligation  of  the  Illinois  Central  Railroad  Company  and 

were  issued  under  the  terms  of  a  trust  agreement  covering  equipment  costing  about  15%  in 
excess  of  the  authorized  amount  of  this  issue. 

The  title  of  this  equipment  will  remain  in  the  name  of  the  trustee  until  all  these  obligations 
have  been  paid. 

Trustee:  The  Commercial  Trust  Co.,  Philadelphia,  Pa. 


[  333  ] 


LAKE  SHORE  &  MICHIGAN  SOUTHERN  RAILWAY  COMPANY 


LAKE  SHORE  &  MICHIGAN  SOUTHERN  RAILWAY  COMPANY 


HISTORY 

The  Lake  Shore  &  Michigan  Southern  Railway  Company  was  formed  by  a  consolidation,  in 
1869,  of  the  ^Michigan  Southern  &  Northern  Indiana  Railway,  operating  a  line  from  Chicago  to  Toledo 
with  branches:  the  Cleveland  &  Toledo  Railroad,  chartered  September  1,  1853,  and  operating  a  line 
from  Toledo  to  Cleveland;  the  Cleveland,  Painesville  &  Ashtabula  Railroad,  chartered  in  1854,  and 
operating  a  line  from  Cleveland  to  Erie,  Pennsylvania,  and  the  Buffalo  &  Erie  Railroad  Companies. 
The  last  named  was  chartered  May  15,  1867,  its  lines  running  from  Erie  to  Buffalo,  New  York. 

The  length  of  the  several  lines  acquired  by  the  consolidation  of  1869,  including  the  Detroit, 
Monroe  &  Toledo  Railroad,  62.36  miles,  was  927.23  miles.  The  share  capital  of  the  consolidated  com- 
pany was  $34,938,000,  and  its  funded  debt  $22,283,000. 

As  a  result  of  further  consolidations  and  extensions,  the  Lake  Shore  &  Michigan  Southern 
Railway  Company  has  developed  into  a  system  of  1,775  miles,  with  a  share  capital  of  $50,000,000, 
and  a  funded  debt  of  nearly  $170,000,000.  Not  only  is  it  the  most  important  subsidiary  road  of  the 
New  York  Central  System,  but  it  is,  likewise,  the  principal  holding  company  of  the  New  York  Cen- 
tral System  in  other  lines. 

Among  the  more  valuable  ecjuities  which  the  Lake  Shore  &  Michigan  Southern  Railway  owns 
in  the  stocks  of  other  companies,  are  the  entire  capital  stocks  of  the  Lake  Erie,  Alliance  &  Wheeling 
Railroad  Company,  purchased  in  January,  1903,  together  with  the  entire  stock  of  the  Lake  Erie, 
Alliance  &  Wheeling  Coal  Company,  and  51%  of  the  Jefferson  Coal  Company;  the  Toledo  &  Ohio 
Central  Railway  Companj-,  and  the  Cleveland  Short  Line  Railway  Company.  The  company  also 
owns  a  controlling  interest  in  the  New  York,  Chicago  &  St.  Louis  Railroad,  holding  at  present 
$2,503,000  first  preferred,  $6,275,000  second  preferred  and  $6,240,000  common  shares  of  the  above 
company.  In  1903,  1909,  1910  and  1911  the  Lake  Shore  subscribed  to  stock  of  the  Pittsburgh  & 
Lake  Erie  Railroad  Company,  and  on  December  31,  1911,  it  o^\^^ed  $12,600,200  of  the  outstanding 
$25,200,000  of  that  company's  capital  stock.  Control  ha^  been  gained  of  a  majority  of  the  stocks  of 
the  Lake  Erie  &  Western  Railroad  Company  ($5,930,000  of  preferred,  $5,940,000  of  the  common 
stock  being  held),  the  Chicago,  Indiana  &  Southern  Railroad  Company,  and  the  Cleveland,  Cincin- 
nati, Chicago  &  St.  Louis  Railway  Comj^any,  control  in  the  last  named  having  been  purchased  in  1905 
and  1906. 

The  Lake  Shore  owns  one  half  of  the  capital  stock  of  the  Detroit,  Toledo  &  IVIilwaukee  Railroad 
Company.  Jointly  with  the  Chesapeake  &  Ohio  Railway,  it  controls  the  stock  of  the  Kanawha  & 
Michigan  Railway  Company,  holding  $4,027,100  of  its  common  stock;  and  owns  $12,600,200  of  the 
$25,200,000  outstanding  stock  of  the  Pittsburgh  &  Lake  Erie  Railroad  Company.  On  December 
31,  1911,  the  company  also  owned  $6,065,000  first  preferred,  $14,265,000  second  preferred,  and 
$10,002,500  common  stock  of  the  Reading  Company. 

These  equities  are  of  considerable  value,  in  many  cases  the  Lake  Shore's  holdings  being  consider- 
ably in  excess  of  the  amount  at  which  they  are  carried  on  the  books  of  the  company.  This  is  espe- 
cially true  of  the  stocks  of  the  Pittsburgh  &  Lake  Erie  Railroad  and  the  Reading  Company. 

The  Lake  Shore  &  Michigan  Southern  Railway  leases  425  miles  of  road  from  the  following  com- 
panies: Detroit,  Hillsdale  &  Southwestern  Railroad,  Fort  Wayne  &  Jackson  Railroad,  Kalamazoo, 
Allegan  &  Grand  Rapids  Railroad,  Jamestown,  Fraidvlin  &  Clearfield  Railroad,  Cleveland  Short 

[  337  ] 


Line  Railway,  and  Mahoning  Coal  Railroad,  and  operates  289  miles  of  proprietary  railroads  con- 
trolled through  stock  ownership. 

In  1898  the  New  York  Central  &  Hudson  River  Railroad  Company  gained  control  of  the  Lake 
Shore  &  INIichigan  Southern  Railway  Company  by  exchanging  the  larger  part  of  the  latter's  stock  for 
New  York  Central  Collateral  Trust  ^14,%  Gold  Bonds  at  the  rate  of  $200  per  share  for  the  capital 
stock.  On  December  31,  1911,  the  New  York  Central  owned  $45,289,200  of  the  $50,000,000  capital 
stock  of  the  Lake  Shore.  The  latter's  road  is  really  a  part  of  the  New  York  Central  System,  but  is 
operated  as  an  independent  organization.  Paying,  as  it  does,  18%  annually  on  its  common  stock, 
the  New  York  Central's  equity  has  proved  very  valuable. 

The  New  York  Central  Lines,  including  the  Lake  Shore  &  Michigan  Southern  Railway,  the 
New  York  Central  &  Hudson  River  Railroad,  the  Michigan  Central  Raiboad,  the  Cleveland,  Cin- 
cinnati, Cliicago  &  St.  Louis  Railway,  and  the  Chicago,  Indiana  &  Southern  Railroad,  have  joiatly 
and  severally  guaranteed  the  principal  and  interest  on  three  issues  of  5%  Equipment  Trust  Certifi- 
cates dated  in  1907,  in  1910,  in  1912,  and  in  1913. 

The  Equipment  Trust  Certificates  of  1907  amounted  to  $30,000,000.  The  Lake  Shore's  share  of 
equipment  leased  under  the  terms  of  the  1907  agreement  cost  approximately  $7,500,000.  The  cer- 
tificates issued  by  the  Guaranty  Trust  Company,  representing  90%  of  the  face  value  of  this  equip- 
ment, amounted  to  $6,708,392,  of  which  $1,788,904  had  been  paid  out  of  income  and  appUed  for  the 
redemption  of  these  certificates  up  to  December  31,  1911,  leaving  a  balance  of  $4,919,488  outstand- 
ing for  which  this  company  is  liable. 

The  Equipment  Trust  Certificates  of  1910  amounted  to  $30,000,000.  The  Lake  Shore's  share  of 
equipment  leased  under  the  terms  of  the  1910  agreement  was  $15,301,184,  and  its  pro  rata  liability 
for  certificates,  representing  90%  of  the  cost,  was  $13,771,065.  Of  this  amount  $918,071  had  been 
paid  for  redemption  up  to  December  31,  1911,  leaving  a  balance  of  $12,852,994  outstanding. 

The  Equipment  Trust  Certificates  of  1912  amounted  to  $15,000,000,  issued  at  43/^%.  The  equip- 
ment purchased  by  the  proceeds  and  assigned  to  the  Lake  Shore  was  approximately  $3,305,000,  and 
the  pro  rata  amount  of  certificates  for  which  the  Company  is  responsible  is  approximately  $2,975,000. 


PROPERTY 

The  mileage  of  the  Lake  Shore  &  Michigan  Southern  Railway  Company,  on  December  31,  1911, 
was  as  follows: 

Miles  owned  in  fee      871.00 

Miles  of  proprietary  lines 289.32 

Miles  operated  under  lease 424.67 

Miles  operated  under  trackage  arrangements 190.44 

Total  miles  operated 1,775.43 

There  was  an  increase  in  mileage  operated  of  112.55  miles  during  the  fiscal  year  of  1911,  due  to  the 
acquisition  of  trackage  rights  over  the  Lake  Erie  &  Pittsburgh  Railway,  the  Pennsylvania,  and  the 
Baltimore  &  Ohio  Railway  Companies'  tracks,  and  by  the  use  of  the  Cleveland  Short  Line  Railway. 

The  Lake  Shore  System  connects  Buffalo,  Cleveland,  Toledo  and  Chicago.  Its  main  line  follows 
the  south  shore  of  Lake  Erie  to  Toledo,  and  cuts  directly  across  northern  Ohio  and  Indiana  into 
Chicago.  The  company  operates  important  branches  into  Michigan,  connecting  the  main  line  with 
Detroit,  Lansing,  Grand  Rapids  and  Kalamazoo.  It  also  controls  mileage,  through  trackage  rights, 
in  central  Ohio  and  Pennsylvania,  including  an  important  line,  directly  owned,  into  the  Sharon  ore 
districts. 

The  company's  mileage  is  chiefly  in  the  States  of  Ohio  and  Indiana.  Their  population  in  1890 
was  5,865,000  and  in  1910,  7,468,000. 

[  338  ] 


CAPITALIZATION 

On  December  31,  1911,  the  capitalization  of  the  Lake  Shore  &  Michigan  Southern  Railway 
Company  was  approximately  as  follows: 

Capital  stock 

Common $49,466,500 

Guaranteed 533,500 

Total  capital  stock $50,000,000 

Funded  debt  (including  Equipment  Obligations) 168,172,482 

Nominal  capital $218,172,482 

Rentals  capitalized  @  5% 50,620,000 

Gross  capitalization      $268,792,482 

Securities  owned 12,751,221 

Net  capitalization $256,041,261 

Net  capital  per  mile  operated $144,249 

Average  miles  operated 1,775.43 

Net  income  to  net  capital 10.7% 

Fixed  charges  to  net  income 43.5% 

Margin  of  safety 56.5% 

In  the  above  estimate,  the  $533,500  guaranteed  stock  refers  to  the  preferred  stock  of  the  former 
Michigan  Southern  &  Northern  Indiana  Railway  Company,  whose  dividends  are  guaranteed  up  to 
at  least  10%  and  are  to  share  equally  in  dividends  paid  on  the  Lake  Shore  &  IVIichigan  Southern 
stock  above  that  amount. 

The  amount  paid  for  rentals  in  1911  was  $2,531,081,  being  the  organization  expenses,  dividends 
and  interest  on  the  outstanding  bonds  of  the  leased  companies. 

The  par  value  of  the  stocks  and  bonds  of  other  companies  owned  by  the  Lake  Shore  was 
$166,239,661,  of  which  $155,771,661  represented  the  holdings  of  stock  of  other  companies  and 
$10,462,000  the  funded  indebtedness  of  the  same.  These  were  carried  on  the  books  of  the  company 
at  $120,444,953.  Of  this  amount  but  $12,751,221  are  carried  as  Capital  Investments.  The  latter 
include  unpledged  securities  of  proprietary  companies  and  have  been  deducted  as  above. 

The  capital  stock  of  the  Lake  Shore  outstanding  per  mile  of  road  owned  in  fee  was  $57,405  in 
1911,  as  compared  with  the  Michigan  Central's  figure  of  $69,382  and  that  of  the  New  York,  Chicago 
&  St.  Louis  Railroad  of  $60,640.  The  funded  debt  of  the  three  companies  per  mile  of  road  owned 
was  as  follows: 

Lake  Shore $192,620 

Michigan  Central      110,511 

N.  Y.,  C.  &  St.  L 57,420 

The  net  capitalization  of  these  three  "  Central"  properties  per  mile  of  road  operated  on  December 
31,  1911,  together  with  the  ratio  of  total  net  income  to  net  capitalization,  was  approximately  as 
follows : 

Net  Net  income 

capitalization  to  net  capital 

Lake  Shore $144,249  10.7% 

Michigan  Central 57,866  10.1 

N.  Y.,  C.  &  St.  L 109,900  5.8 

[  339  ] 


1911 

1910 

1909 

1908 

1907 

9.68% 

8.77% 

9.52% 

12.40% 

10.24% 

3.62 

3.09 

4.09 

5.05 

3.13 

56.48 

59.64 

58.12 

53.76 

54.98 

2.92 

2.77 

2.83 

3.23 

3.02 

26.13 

24.65 

24.02 

24.08 

26.78 

1.17 

1.08 

1.42 

1.48 

1.85 

It  will  be  noted  that  fixed  charges,  which  include  taxes,  rentals  and  interest  on  the  company's 
funded  debt,  consumed  but  43.5%  of  its  total  net  income,  leaving  a  margin  of  safety  for  these  charges 
of  56.5%.  A  margin  of  safety  of  25%  was  reported  for  the  Michigan  Central  and  47%  for  the  New 
York,  Chicago  &  St.  Louis. 

CHARACTER  OF  TRAFFIC 

The  company's  freight  traflBc  represents  two-thirds  of  its  entire  business.  Following  is  a  classi- 
fication of  its  commodity  tonnage  for  the  years  1907  to  1911  inclusive: 

Products  of 

Agriculture  . 
Animals  .  .  . 
Mines  .  .  . 
Forests  .  .  . 
Manufactures 
Miscellaneous 

100.00%,        100.00%        100.00%        100.00%        100.00% 

The  company's  total  tonnage  in  1900  was  19,848,475,  while  in  1911  this  figure  had  increased  to 
34,887,697,  a  gain  of  76%  for  the  period. 

The  generally  heavy  volume  of  freight  business  has  been  well  maintained  during  the  five  years 
ending  1911.  The  freight  density,  revenue  tons  per  train,  and  freight  earnings  of  the  Lake  Shore  for 
the  years  1907  to  1911  inclusive,  were  as  follows: 

Year  Freight  Train  Freight  Average  rate 

density  load  earnings  per  ton 

tons  per  mile 

1907 3,777,147  618  $31,111,482  $.0053 

1908 3,211,690  586  25,935,473  .0052 

1909 3,715,969  624  29,735,277  .0052 

1910 3,803,178  593  32,646,536  .0052 

1911 3,508,010  634  31,101,335  .0053 

Passenger  traffic  contributes  nearly  25%  of  the  gross  earnings  of  the  road.  In  1907  the  Lake 
Shore  reported  the  largest  passenger  earnings  in  its  history.  With  the  exception  of  1908,  every  year 
since  1907  has  shown  an  increase,  and  in  every  year  the  company's  passenger  density  —  the  number  of 
passengers  carried  one  mile  per  mile  of  road  —  has  shown  consistent  gains. 

Year  Passenger        Number  of  Passenger  Avenige  rate 

density  passengers  earnings  per  passenger 

per  train  per  mile 

1907 317,504  65  $9,769,873  $.0197 

1908 321,296  66  9,583,227  .0191 

1909 368,450  65  10,154,220  .0182 

1910 404,351  60  11,130,125  .0187 

1911 407,881  63  11,350,096  .0189 


[  340 


EARNINGS 

The  Lake  Shore's  gross  and  net  earnmgs  for  the  years  1907  to  1911  inchisive  were  as  follows: 


Year 

Average 

Gross 

Per 

Net 

Per 

Operating 

miles 

earnings 

mile 

earnings 

mile 

ratio 

operated 

1907  .    . 

.      1520 

$44,953,475 

$29,574 

$15,409,128 

$10,138 

65.72% 

1908  .    . 

.      1511 

39,964,858 

26,449 

13,252,847 

8,772 

66.84 

1909  .    . 

.      1663 

45,110,997 

27,126 

17,087,336 

10,276 

62.12 

1910  .    . 

.      1663 

49,420,210 

29,717 

14,499,278 

8,720 

70.66 

1911  .    , 

.      1775 

48,360,997 

27,245 

17,282,419 

9,738 

64.26 

The  gross  revenues  of  1907  were  by  far  the  largest  the  company  had  ever  reported.  In  1908, 
as  a  result  of  the  general  business  depression,  a  $5,000,000  decline  in  gross  earnings  was  shown. 
In  1909,  however,  gross  earnings  had  more  than  recovered  from  the  low  figures  of  the  previous  year. 
Operating  expenses  increased  $2,800,000,  of  which  $2,000,000  was  due  to  increases  of  maintenance, 
especially  equipment  charges,  owing  to  the  large  amount  of  equipment  used  to  handle  additional 
traffic.  As  a  result,  the  company's  operating  ratio  decreased  from  66.84%  in  1908  to  62.12%  in  1909, 
the  lowest  it  has  reached  in  the  last  decade. 

The  fiscal  year  of  1910  showed  an  increase  of  $4,500,000  in  gross  earnings  over  the  previous 
high  record  of  1907.  Operating  expenses,  however,  increased  $6,900,000.  bringing  the  operating 
ratio  up  to  over  70%,  or  8.5%  more  than  in  1909.  The  ratio  of  maintenance  to  gross  earnings 
took  care  of  4.0%  of  this  difference,  increasing  from  27.2%  in  1909  to  31.2%  in  1910.  The  ratio 
of  conducting  transportation  to  gross  earnings  increased  from  34.9%  in  1909  to  39.4%  in  1910, 
or  4.5%. 

Although  the  gross  earnings  of  1911  were  not  equal  to  those  of  1910,  they  appear  to  have  been 
satisfactory  in  volume,  considering  the  generally  unsettled  business  conditions.  Retrenchments  in 
maintenance  of  way  of  18%,  in  equipment  charges  of  15%,  and  a  normal  decline  in  transportation 
costs,  reduced  the  operating  ratio  of  the  Lake  Shore  from  70.66%  in  1910  to  64.26%  in  1911,  and 
enabled  it  to  report  the  largest  net  earnings  on  record. 


MAINTENANCE 

The  Lake  Shore  &  ^Michigan  Southern  Railway  Company  has  spent  the  following  amounts  for 
maintenance  of  way  and  equipment  since  1907: 

Year  Maintenance  Total  Per 

Way  Equipment  maintenance  mile 

1907 $6,328,637  $6,044,154  $12,372,791  $8,139 

1908 4,909,069  5,422,114  10,331,183  6,836 

1909 5,468,363  6,811,551  12,279,914  7,383 

1910 7,549,661  7,873,217  15,422,878  9,273 

1911 6,178,623  6,704,096  12,882,719  7,256 

During  the  five  years  the  company  spent  nearly  $64,000,000  out  of  income  for  maintenance  of 
way  and  equipment.  This  is  an  average  of  over  $12,800,000  per  year,  or  $7,778  per  mile  of  road 
operated. 

The  following  table  gives  the  average  yearly  traffic  density,  and  the  average  amount  spent 
annually  for  maintenance  by  the  Lake  Shore,  Michigan  Central,  and  the  New  York,  Chicago  & 
St.  Louis  for  the  decade  ending  1911: 

[341  ] 


Ten-year  average                                                                                                       Traffic  Maintenance 

density  per  mile 

Lake  Shore 3,736,996  $8,245 

Michigan  Central      1,730,894  4,270 

N.  Y.,  C.  &  St.  L 3,127,933  4,246 


ADDITIONS  AND  BETTERMENTS 

Besides  ample  maintenance  charges,  the  company  has  charged  large  amounts  of  income  to 
improvements  of  both  road  and  equipment.  During  the  decade  the  following  amounts  have  been 
spent: 

Year  Improvements 

On  equipment  For  construction,  etc. 

1902 $1,423,673  $2,768,788 

1903 1,788,140  4,527,136 

1904 2,776,034  2,781,202 

1905 3,360,773  3,743,020 

1900 1,201,847  4,221,846 

1907 911,126  4,082,988 

1908 1,292,276 

1909 1,263,186 

In  1910,  $1,365,297  was  charged  to  income  as  1910  instalments  on  the  1907  and  1910  trust 
equipment  certificates,  and  $1,481,957  was  credited  to  appropriated  surplus  as  the  initial  payment  of 
10%  on  the  equipment  trust  certificates  of  1910.  In  1911,  $1,365,297  was  charged  to  income  as  1911 
instalments  on  the  1907  and  1910  trust  equipment  certificates. 

From  1902  to  1904  inclusive  the  above  amounts  were  included  in  operating  expenses,  but  in  later 
years  were  shown  separately  on  the  income  sheet.  In  the  maintenance  table  above,  as  well  as  in  the 
table  of  statistics  given  below,  these  amounts  have  not  been  included  in  operating  expenses,  but  ap- 
pear as  "Other  charges  to  income"  and  are  deducted  from  surplus. 

In  addition,  the  following  amounts  have  been  spent  on  improvements  to  property  and  charged 
to  Capital,  in  accordance  with  the  ruling  of  the  Interstate  Commerce  Commission : 

Year  Improvements 

1909 $3,564,414 

1910 6,371,015 

1911 2,722,976  (net) 


$12,658,405 
DIVIDENDS 

The  company  began  paying  dividends  in  1869,  when  4%  was  paid,  and  except  for  the  two  years, 
1874  and  1886,  the  Lake  Shore  has  paid  dividends  continuously.  Following  is  the  company's  record 
since  1886: 

Year  Rate  Year  Rate 

1887-8 4%  1903 7}4% 

1889-90 5  1904-G 8 

1891-2 6H  1907 12 

1893-7 6  1908 14 

1898 63^  1909 12 

1899-1902 7  1910-12 18 

[  342  ] 


The  balance  sheet  of  the  Lake  Shore  &  Michigan  Southern  Railway  Company  of  December 
31,  1911,  showed  a  Profit  and  Loss  balance  of  $36,154,623,  and,  together  with  the  amount  of  appro- 
priated surplus  for  additions  to  property  through  income  since  June  30,  1907,  of  $8,845,323,  this 
balance  is  equivalent  to  90%  of  the  company's  outstanding  capital. 

STATISTICS 

Following  are  the  capitalization,  earnings  and  traffic  statistics  of  the  Lake  Shore  &  Michigan 
Southern  Railway,  based  on  the  average  miles  operated,  for  the  year  1900  and  for  the  years  1905 
to  1911  inclusive: 


[  343  ] 


LAKE  SHORE  &  MICHIGAN  SOUTHERN  RAILWAY 


FUcal 

CapiUil 

Funded 

Rentals 

Gross 

Owned  by 

Net 

Average 

Extra 

year 

stock 

debt 

@  5% 

capital 

company 

capital 

mUes 
operated 

t^ack 

1900 

$35,435 

$35,949 

^13,086 

$84,470 

$19,049 

$65,421 

1,411 

522 

1905 

32,895 

66,659 

17,178 

116,732 

51,245 

65,487 

1,520 

747 

1906 

32,895 

89,081 

19,080 

141,056 

61,018 

80,038 

1,520 

841 

1907 

32,895 

98,947 

18,686 

150,528 

67,139 

83,389 

1,520 

845 

1908 

33,090 

99,536 

14,564 

147,190 

59,377 

87,813 

1,511 

846 

1909 

30,066 

90,438 

22,353 

142,857 

4,195 

138,662 

1,663 

918 

1910 

30,066 

98,507 

27,282 

155,855 

4,195 

151,660 

1,663 

1,152 

1911 

28,169 

94,745 

28,519 

151,433 

7,184 

144,249 

1,775 

1,194 

Fiscal 

Gross 

Maintenance 

Transportat 

on        Net 

Other 

Total 

Fixed 

Surplus 

year 

operating 

and  general      operating 

incom 

net 

charges 

available 

revenue 

Way        Equipment           expense 

revenue 

income 

for 

dividends 

1900 

$18,757 

$2,189 

$2,874 

$6,699 

$6,995 

$531 

$7,526 

$2,805 

$4,721 

1905 

25,395 

5,337 

5,464 

9,811 

4,783 

2,314 

7,097 

4,157 

2,940 

1906 

27,989 

3,501 

3,844 

10,582 

10,062 

2,734 

12,794 

4,957 

7,837 

1907 

29,574 

4,163 

3,976 

11,297 

10,138 

3,760 

13,898 

5,753 

8,145 

1908 

26,449 

3,248 

3,588 

10,841 

8,772 

3,105 

11,877 

5,941 

5,936 

1909 

27,126 

3,288 

4,095 

9.467 

10,276 

3,900 

14,176 

6,408 

7,768 

1910 

29,717 

4.539 

4,734 

11,724 

8,720 

6,285 

15,005 

6,713 

8,292 

1911 

27,245 

3,480 

3,776 

10,251 

9,738 

5,760 

15,498 

6,742 

8,756 

Fiscal 

Dividends 

Other            Surplus 

Operating 

Total          Conducting 

Fixed 

Gross 

Net 

Per  cent 

year 

charges  to 

expenses       maintenance    transporta- 

charges        earnings       income 

earned  on 

mcome 

to  gross 

to  gross      tion  to  gross 

to  gross        to  gross        to  net 

capital 

earnings 

earnings 

eammgs 

earnings 

capita 

capital 

stock 

1900 

$2,454 

$2,267 

62.72% 

26.9% 

35.8% 

15.0% 

22.2%       11.5%        13.3% 

1905 

2,603 

337 

81.17 

42.6 

38.6 

16.3 

21.7 

10.8 

8.9 

1906 

3,254 

$3,567           1 

016 

64.06 

26.3 

37.8 

17.7 

19.8 

16.0 

23.8 

1907 

4.556 

3,285 

304 

65.72 

27.6 

38.1 

19.4 

19.5 

16.6 

24.7 

1908 

3,928 

855           1,153 

66.84 

25.8 

41.0 

22.5 

18.0 

13.5 

17.9 

1909 

3,569 

759           3,440 

62.12 

27.2 

34.9 

23.7 

18.9 

10.2 

25.8 

1910 

5,354 

820           2 

118 

70.66 

31.3 

39.4 

22.6 

19.0 

9.9 

27.5 

1911 

5.016 

3 

740 

64.26 

26.7 

37^6 

24.8 

18.0 

10.7 

31.0 

Fiscal 

Train 

Maintenance 

Conduct-        Train 

Rate  pe 

r  mile 

Freight 

Train 

Freight 

'assenger. 

year 

mile 

per  revenue 

ing  trans-         mile 

density 

load 

to  all 

freight 

earnings 

train  mile 

portation     earnings        Per 

Per 

revenue     traffic 

and 

(gross) 

per 

revenue      (net) 

passenger 

ton 

tons 

company 

Way      Equipme 

nt    train  mile 

1900 

$2.03         $ 

237          $.312 

$.727           $.71 

$.0203 

$.0050 

2,566,144 

352 

69% 

21,058 

1905 

2.51 

527 

539 

.969              .47 

.0203 

.0052 

3,355,210 

619 

69 

29,769 

1906 

2.51 

315 

345 

.952             .90 

.0202 

.0052 

3,698,357 

624 

70 

37,668 

1907 

2.55 

358 

342 

.973             .87 

.0196 

.0053 

3,777,147 

618 

69 

37,913 

1908 

2.45 

301 

333 

1.005             .81 

.0191 

.0052 

3.211,690 

586 

65 

37,078 

1909 

2.54 

307 

382 

.884             .96 

.0181 

.0052 

3,715,969 

624 

65 

36,877 

1910 

2.42 

370 

386 

.957             .71 

.0186 

.0052 

3,803.178 

593 

66 

35,740 

1911 

2.57 

328 

356 

.966             .92 

.0188 

.0053 

3,508,010 

634 

64 

35,675 

In  the  capitalization  figures  above,  it  will  be  noted  that,  in  1909,  there  was  a  radical  decline  in  the  column  "  Owned  by  company  " 
and  a  corresponding  increase  in  "  Net  capital."  This  is  due  to  the  fact  that  prior  to  that  time  the  company  reported  its  securi- 
ties in  bulk  as  a  capital  asset,  but,  following  the  Interstate  Commerce  Commission  ruling,  in  1909  it  divided  its  securities  into  two 
groups,  one  showing  those  of  proprietary  and  controlled  roads  held  as  capital  investments,  and  the  other  showing  its  investment  in 
outside  properties.  After  and  including  1909,  only  securities  held  as  capital  assets  have  been  included  in  the  column  "  Owned  by 
company  "  above. 

It  is  interesting  to  note,  however,  that  in  1911  the  Lake  Shore  reported  a  total  security  investment  of  $120,445,000,  or  upwards  of 
.$68,000  for  every  mile  operated,  of  which  $12,751,000  represented  securities  of  proprietary  and  controlled  companies,  and  .$107,089,000 
represented  its  holdings  in  outside  properties  but  included  among  working  assets  as  Marketable  Securities. 

[344  ] 


BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Lake  Shore  &  Michi- 
gan Southern  Railway  Sj'stem,  together  with  the  bases  on  which 
they  have  sold  during  the  decade  ending  December  31,  1912: 


LAKE  SHORE  &  MICHIGAN  SOUTHERN  RAILWAY 
First  Mortgage  3^s 

Dated  June  1,  1897  Maturing  June  1,  1997 

Interest  payable  June  1  and  December  1  at  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000. 

Authorized  $50,000,000  '  Outstanding  $50,000,000 

Per  mile  .    .  60,530 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  825.79  miles  of  the  company's  line,  in- 

cluding the  293.71  miles  from  Buffalo,  N.  Y.,  to  Toledo,  O.;  Palmyra,  Mich.,  to  Chicago, 
111.,  215.90  miles;  Air  Line  Junction  to  Elkhart,  Ind.,  131.10  miles;  also  on  buildings,  bridges, 
rolling  stock,  incomes,  future  acquisitions,  etc. 

Trustees:  United  States  Trust  Company,  New  York,  and  John  T.  Dye,  Esq. 


These  bonds  sold  in  1902  on 

a  3.20  to  3.35  basis 

1903 

3.30 

3.55 

1904 

3.40 

3.55 

1905 

3.40 

3.55 

1906 

3.45 

3.75 

1907 

3.70 

4.25 

1908 

3.65 

3.95 

1909 

3.65 

3.875 

1910 

3.80 

3.90 

1911 

3.90 

4.05 

1912 

3.95 

4.05 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


LAKE  SHORE  &  MICHIGAN  SOUTHERN  RAILWAY 

25-year  Debenture  4s 

Dated  November  18,  1903  Maturing  September  1,  1928 

Interest  payable  March  1  and  September  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000  and  $5,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000,  $10,000,  $20,000,  $50,000,  $100,000  or  multiples  of  $5,000. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $50,000,000  Outstanding  $50,000,000 

Security:  Although  not  secured  by  a  mortgage,  the  above  bonds  are  a  direct  obligation  of  the  company, 

which  has  agreed  that  "  so  long  as  any  of  said  bonds  are  outstanding  and  unpaid,  the  Railway 

Company  wiO  not  make  any  new  mortgage  upon  its  railroad,  without  also  thereby  including 

therein  every  bond  issued  under  this  indenture  equally  and  ratably  with  every  bond  issued 

[  346  ] 


Trustee : 


under  and  secured  by  any  such  mortgage;  but  this  covenant  shall  not  prevent  the  renewal 
extension  of  any  existing  mortgage." 

Guaranty  Trust  Company,  New  York. 


These  bonds  sold  in  1904  on  a  3.87  to  4.10  basis 


1905 

3.80 

4.00 

1906 

3.87 

4.25 

1907 

4.05 

4.55 

1908 

4.20 

4.87 

1909 

4.25 

4.45 

1910 

4.35 

4.65 

1911 

4.40 

4.65 

1912 

4.50 

4.75 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


LAKE   SHORE   &   MICHIGAN   SOUTHERN   RAILWAY 


25-year  Debenture  4s 

Dated  May  1,  1906  Maturing  May  1,  1931 

Interest  payable  May  1  and  November  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000  and  $5,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000,  $10,000,  $20,000,  $50,000,  $100,000  or  multiples  of  $5,000. 

Coupon  and  registered  bonds  interchangeable. 


Authorized  $50,000,000 


Outstanding  $50,000,000 


Security :  Although  not  secured  by  a  mortgage,  the  above  bonds  are  a  direct  obligation  of  the  company, 

which  has  agreed  that  "  so  long  as  any  of  said  bonds  are  outstanding  and  unpaid,  the  Railway 
Company  will  not  make  any  new  mortgage  upon  its  railroad,  without  also  thereby  including 
therein  every  bond  issued  under  this  indenture  equally  and  ratably  with  every  bond  issued 
under  and  secured  by  any  such  mortgage;  but  this  covenant  shall  not  prevent  the  renewal  or 
extension  of  any  existing  mortgage." 

Trustee:  Guaranty  Trust  Company,  New  York. 

These  bonds  sold  in  1907  on  a  4.62  to  5.20  basis 

1908  4.25   4.80 

1909  4.25   4.50 

1910  4.30   4.60 

1911  4.40   4.60 

1912  4.50   4.70 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


[  347 


JAMESTOWN,   FRANKLIN   &   CLEARFIELD   RAILROAD 

First  Mortgage  4s 

Dated  June  1,  1909  Maturing  June  1,  1959 

Interest  payable  June  1  and  December  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000. 
Coupon  and  registered  bonds  interchangeable. 

Authorized  $"25,000,000  Outstanding  $11,000,000 

Per  mile  .    .  89,435 

Provisions  of      $14,000,000  of  the  above  issue  are  reserved  for  extensions,  additions,  improvements,  etc. 
issue : 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  123.39  miles  of  road,  including  the  line 

from  the  Ohio-Pennsylvania  State  line  to  a  junction  with  the  Allegheny  Valley  Railway  at 
Brookville,  Pa.,  103.70  miles;  also  on  branches,  franchises,  incomes,  future  acquisitions,  etc. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Lake  Shore  & 
Michigan  Southern  Railway  Company  by  endorsement. 

Trustee :  Guaranty  Trust  Company,  New  York. 

The  Jamestown,  Franklin  &  Clearfield  Railroad  Company  was  chartered  under  the  laws  of 
Pennsylvania  on  March  8,  1909,  as  a  consolidation  of  the  Jamestown  &  Franklin  Railroad,  the  Frank- 
lin &  Clearfield  Railroad,  the  Central  Trunk  Railway  and  the  Jackson  Coal  Railroad  Companies. 

The  road  is  leased,  at  an  annual  rental  equal  to  the  interest  on  its  funded  and  other  indebtedness, 
taxes,  and  5%  per  annum  on  the  capital  stock,  to  the  Lake  Shore  &  Michigan  Southern  Railway 
Company,  which  owns  practically  all  its  entire  capital  stock. 

These  bonds  sold  in  1909  on  a  4.35  basis  (bid) 

1910  4.25  to  4.30  basis 

1911  4.20       4.30 

1912  4.27       4.30 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and 
Rhode  Island. 


[  348  ] 


KALAMAZOO,  ALLEGAN   &   GRAND   RAPIDS   RAILROAD 

First  Mortgage  Currency  5s 

Dated  July  2,  1888  Maturing  July  1,  1938 

Interest  payable  January  1  and  July  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $840,000  Outstanding  $840,000 

Per  mile    .    .       14,500 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  58.45  miles  of  road,  extending  from  Kalamazoo 

to  Grand  Rapids,  Mich.,  and  on  franchises,  incomes,  etc. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Lake  Shore  & 
Michigan  Southern  Railway  Company. 

Trustee:  Union  Trust  Company,  New  York. 

The  Kalamazoo,  Allegan  &  Grand  Rapids  Railroad  Company  was  chartered  June  3,  1868,  under 
the  laws  of  the  State  of  Michigan.  On  September  21,  1869,  the  road  was  leased  to  the  Lake  Shore  & 
Michigan  Southern  Railway  Company  for  999  years  at  an  annual  rental  of  $78,600,  equal  to  6% 
on  the  capital  stock  and  5%  on  the  bonds. 

The  above  bonds  were  quoted  in  1909  on  a  4.25  basis  (bid) 

1910  4.35 

1911  4.50 
December,  1912           4.65 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts, Connecticut  and  Rhode  Island. 


KALAMAZOO    &  WHITE   PIGEON   RAILROAD 
First  Mortgage  Currency  5s 

Dated  January  1,  1890  Maturing  January  1,  1940 

Interest  payable  January  1  and  July  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000. 
Registered  bonds  of  $1,000  and  $5,000. 

Authorized  $400,000  Outstanding  $400,000 

Per  mile    .    .       10,800 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  30.54  miles  of  railroad,  extending  from 

White  Pigeon  to  Kalamazoo,  IMich.,  also  on  franchises,  incomes,  future  acquisitions,  etc. 
[  349  ] 


The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Lake  Shore  & 
Michigan  Southern  Railway  Company  by  endorsement. 

Trustee :  Union  Trust  Company,  New  York. 

The  Kalamazoo  &  White  Pigeon  Railroad  was  incorporated  under  the  laws  of  the  State  of 
Michigan  in  1869  as  a  consolidation  of  the  Schoolcraft  &  Three  Rivers  Railroad  and  the  Kalamazoo 
&  Schoolcraft  Railroad  Companies.  The  entire  capital  stock  is  owned  by  the  Lake  Shore  &  Michigan 
Southern  Railway  Company,  which  leases  the  road  at  an  annual  rental  equal  to  the  interest  on 
$400,000  bonds,  taxes,  etc. 

These  bonds  sold  in  1902  on  a  3.60  basis 

In  1909  they  were  quoted  on  a  4.25  basis  (bid) 

1910  4.45 

1911  4.50 
December,  1912  4.20  (bid) 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Con- 
necticut and  Rhode  Island. 


MAHONING   COAL   RAILROAD 
First  Mortgage  Currency  5s 

Dated  July  1,  1884  Maturing  July  1,  1934 

Interest  payable  January  1  and  July  1  at  the  Union  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $1,500,000  Outstanding  $1,500,000 

Per  mile    .    .        22,060 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  68.41  miles  of  road,  including  the  line  from 

Andover  to  Youngstown,  O.,  38.18  miles;  Mann  to  Brookfield,  Pa.,  24.49  miles,  and  the 
Sharon  Branch,  5.74  miles;  also  on  branches  hereafter  built,  on  all  property  now  owned  or 
hereafter  acquired,  and  all  franchises  and  incomes. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Lake  Shore  & 
Michigan  Southern  Railway  Company  by  endorsement. 

Trustee:  Union  Trust  Company,  New  York. 

The  Mahoning  Coal  Railroad  Company  was  chartered  under  the  laws  of  Pennsylvania  and 
Ohio,  February  18,  1871,  and  the  road  was  opened  for  traffic  in  1873.  In  1884  the  property  was 
leased  in  perpetuity  to  the  Lake  Shore  &  Michigan  Southern  Railway  Company  at  an  annual 
rental  of  40%  of  the  gross  earnings.  In  case  40%  is  not  sufficient  to  pay  interest  on  bonds  and  5% 
on  the  preferred  stock,  the  Lake  Shore  &  Michigan  Southern  Railway  Company  agrees  to  advance 
the  sum  needed,  this  amount  to  be  a  charge  on  future  earnings.  On  December  31,  1911,  the  Lake 
Shore  &  Michigan  Southern  Railway  Company  owned  $399,500  preferred  and  $865,900  common 
stock  of  the  Mahoning  Coal  Railroad  Company. 

[  350  ] 


The  above  bonds  sold  in  1902  on  a  3.55 


1903 

3.70  to  3.85 

1905 

3.65   3.67 

1906 

3.55   3.70 

1907 

4.45 

1909 

4.20  (bid) 

1910 

4.35  (bid) 

1911 

4.20   4.25 

December,  1912 

4.30 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts, Connecticut  and  Rhode  Island. 


STURGIS,   GOSHEN   &   ST.   LOUIS   RAILWAY 
First  Mortgage  3  s 

Dated  December  1,  1889  Maturing  December  1,  1989 

Interest  payable  June  1  and  December  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $2,500,000  Outstanding    $322,000 

Per  mile  .    .         11,100 

Provisions  of      This  issue  was  authorized  to  the  amount  of  $322,000  and  $15,000  per  mile  of  additional  road 
issue:  to  the  aggregate  of  $2,500,000. 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  28.92  miles  of  road  extending  from  Goshen, 

Ind.,  to  Sturgis,  Mich.,  and  on  all  property  now  owned  or  hereafter  acquired,  and  all  incomes 
and  franchises. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Lake  Shore  & 
Michigan  Southern  Railway  Company  by  endorsement. 

Trustee:  Metropolitan  Trust  Company,  New  York. 

The  Sturgis,  Goshen  &  St.  Louis  Railway  was  taken  over  from  the  receivers,  December  1,  1889, 
by  the  Lake  Shore  &  Michigan  Southern  Railway  Company,  which  acquired  the  entire  capital 
stock  and  assumed  the  bonded  indebtedness. 

The  above  bonds  are  considered  a  legal  investment  for  savings  bank  in  Maine,  New  Hampshire  and 
Rhode  Island. 


[  351  ] 


CHICAGO,   INDIANA    &   SOUTHERN   RAILROAD 
50-year  Mortgage  4s 

Dated  June  27,  1906  Maturing  January  1,  1956 

Interest  payable  January  1  and  July  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000  and  $10,000  and  multiples  of  $10,000. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $20,000,000  Outstanding  $15,150,000 

Per  mile  .    .  44,950 

$4,850,000  bonds  of  this  issue  are  reserved  to  retire  Indiana,  Illinois  &  Iowa  First  4s  of  1950. 

Security:  The  above  bonds  are  secured  by  direct  mortgage  on  336.60  miles  of  road.     They  are  secured 

by  a  first  mortgage  on  130.98  miles,  including  the  109.09  miles  of  line  from  Indiana  Harbor, 
Ind.,  to  Danville,  111.,  and  by  a  second  mortgage  on  the  205.62  miles  which  are  covered  by 
the  first  lien  of  the  Indiana,  Illinois  &  Iowa  4s  of  1950,  for  a  description  of  which  see  below. 
The  bonds  are  also  secured  by  mortgage  on  leaseholds,  franchises,  incomes,  etc. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Lake  Shore 
&  Michigan  Southern  Railway  Company. 

Trustees:  Guaranty  Trust  Company,  New  York,  and  William  H.  Wildhack,  Esq. 

The  Chicago,  Indiana  &  Southern  Railroad  Company  was  incorporated  under  the  laws  of 
Indiana  and  Illinois  on  April  9,  190G,  as  a  consolidation  of  the  Indiana.  Illinois  &  Iowa  Railroad,  the 
Indiana  Harbor  Railroad  and  the  Danville  &  Indiana  Harbor  Railroad  ("omijanies. 

The  road  is  controlled  by  the  Lake  Shore  &  INlichigau  Southern  Railway  Company  through 
ownership  of  $12,000,000  of  $15,000,000  common  stock  and  the  entire  $5,000,000  preferred  stock. 

These  bonds  sold  in  1909  on  a  4.20  to  4.30  basis 

1910  4..30       4.40 

1911  4.35       4.45 

1912  4.45       4.50 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


[  352 


INDIANA,   ILLINOIS    &   IOWA   RAILROAD 
First  Mortgage  4s 

Dated  July  1,  1900  Maturing  July  1,  1950 

Interest  payable  January  1  and  July  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $12,000,000  Outstanding  $4,850,000 

Per  mile  .    .  23,540 

Provisions  of      No  more  of  the  above  bonds  are  to  be  issued,  in  accordance  with  the  terms  of  the  mortgage 
issue:  of  the  Chicago,  Indiana  &  Southern  4s  of  1956,  a  sufficient  number  of  which  have  been  reserved 

to  retire  the  above  bonds. 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  205.62  miles  of  road,  including  the  192.08  miles 

from  South  Bend,  Ind.,  to  Seatonville  Junction,  111.,  also  on  real  estate,  equipment,  buildings, 
franchises,  etc. 

The  bonds  are  a  direct  obligation  of  the  Chicago,  Indiana  &  Southern  Railroad  Company. 

Trustees:  Illinois  Trust  &  Savings  Bank,  Chicago,  and  Joseph  D.  Oliver,  Esq. 

The  Indiana,  Illinois  &  Iowa  Railroad  Company  was  formed  September  15,  1898,  as  a  consolida- 
tion of  the  Indiana,  IIHnois  &  Iowa  Railroad  Company  with  the  Indiana,  Illinois  &  Iowa  Railway 
Company.  In  1906  the  road  was  consolidated  with  the  Indiana  Harbor  Railroad  and  the  Danville 
&  Indiana  Harbor  Railroad  Companies,  the  new  company  being  known  as  the  Chicago,  Indiana  & 
Southern  Railroad  Company. 


These  bonds  sold  in  1902  on 

a  3.875 

to  4.00  basis 

1903 

3.90 

4.15 

1904 

3.95 

4.10 

1905 

3.98 

4.02 

1906 

4.00 

4.05 

1907 

4.00 

4.35 

1908 

4.25 

1909 

4.10 

4.20 

1910 

4.10 

4.25 

1911 

4.20 

4.30 

1912 

4.22 

4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


[  353  ] 


LAKE  ERIE   &  WESTERN   RAILROAD 
First  Mortgage  Ss 

Dated  February  21,  1887  Maturing  January  1,  1937 

Interest  payable  January  1  and  July  1  at  the  Chase  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  fully  registerable. 

Authorized  $10,000  per  mile  Outstanding  $7,250,000 

Per  mile  .    .  10,210 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  710.10  miles  of  road,  including  the  412.79 

miles  from  Sandusky,  O.,  to  Peoria,  111.;  158.64  miles  from  Indianapolis  to  Michigan  City; 
and  the  104.59  miles  from  Fort  Wayne  to  Connersville,  Ind.;  also  on  equipment  and  future 
acquisitions. 

Trustee:  Central  Trust  Company,  New  York. 

The  Lake  Erie  &  Western  Railway  Company  was  formed  January  1,  1880,  as  a  consolidation 
of  the  Lafayette,  Bloomington  &  Mississippi  Railroad,  the  Lafayette,  Muncie  &  Bloomington,  the 
Indianapolis  &  Sandusky,  and  the  Lake  Erie  &  Louisville  Railroad  Companies.  In  1886  the  road 
was  sold  under  foreclosure.  In  1887  the  Lake  Erie  &  Western  Railroad  Company  was  formed  to 
purchase  the  property  of  the  old  company. 

The  road  is  operated  by  its  own  organization,  but  is  controlled  by  the  Lake  Shore  &  Michigan 
Southern  Railway  Company  through  ownership  of  $5,940,000  of  the  $11,840,000  common  stock  and 
$5,930,000  of  the  $11,840,000  preferred  stock. 

These  bonds  sold  in  1902  on  a  3.80  to  3.95  basis 


1903 

3.90 

4.15 

1904 

3.90 

4.15 

1905 

3.90 

4.00 

1906 

3.95 

4.20 

1907 

4.15 

4.45 

1908 

4.15 

4.60 

1909 

4.05 

4.25 

1910 

4.20 

4.45 

1911 

4.30 

4.45 

1912 

4.35 

4.55 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Mai: 


[  354  ] 


LAKE   ERIE    &   WESTERN   RAILROAD 
Second  Mortgage  5s 

Dated  June  30,  1891  Maturing  July  1,  1941 

Interest  payable  January  1  and  July  1  at  the  Chase  National  Bank,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $3,625,000  Outstanding  $3,625,000 

Per  mile  .    .  5,100 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  same  property  covered  as  a  first 

mortgage  by  the  Lake  Erie  &  Western  5s  of  1937  (see  above). 

Trustee:  Central  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  4.05  to  4.20  basis 


1903 

4.30 

4.50 

1904 

4.20 

4.45 

1905 

4.15 

4.30 

1906 

4.25 

4.40 

1907 

4.55 

4.62 

1908 

4.65 

5.00 

1909 

4.45 

4.55 

1910 

4.55 

4.60 

1911 
1912 

4.75 
4.75 

NORTHERN   OHIO   RAILWAY 

First  Mortgage  5s 

Dated  October  1,  1895  Maturing  October  1,  1945 

Interest  payable  Ajjril  1  and  October  1  at  the  Chase  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  i)rincipal. 

x\uthorized  $4,000,000  Outstanding  $2,500,000 

Per  mile  .    .  15,430 

Provisions  of      The  above  bonds  were  authorized  to  the  amount  of  $4,000,000,  of  which  $2,500,000  were  issued 
issue:  at  once  on  the  road  completed  at  the  date  of  the  indenture.    The  residue,  $1,500,000,  are  to 

be  issued  at  the  rate  of  $15,000  per  mile  of  completed  road  either  constructed  or  acquired. 

Security:  The  bonds  are  secured  by  a  first  mortgage  on  161.75  miles  of  road  extending  from  Akron  to 

Delphos,  O.;  also  on  terminals,  land,  rolling  stock,  incomes,  etc. 

These  bonds  are  GUARANTEED   as  to  PRINCIPAL  and  INTEREST  by  the  Lake  Erie 
&  Western  Railroad  Company. 

Trustee:  Central  Trust  Company,  New  York. 

[  355  ] 


The  Northern  Ohio  Railway  Company  was  formed  in  1895  to  take  over  the  property  of  the  Pitts- 
burgh, Akron  &  Western  Railroad  Company  which  had  been  sold  under  foreclosure.  This  latter  road 
was  the  result  of  a  consolidation  in  1890  of  the  Pittsburgh,  Akron  &  Western  Railway  and  the  Cleve- 
land &  Western  Railroad  Companies. 

On  October  1,  1895,  the  Northern  Ohio  Railway  Company  leased  its  property  for  999  years  to 
the  Lake  Erie  &  Western  Railroad  Company  which  guarantees  the  principal  and  interest  on  its 
$4,000,000  First  Mortgage  5%  bonds,  mentioned  above.  The  entire  common  stock  of  the  road  is 
owned  by  the  Lake  Erie  &  Western  Railroad  Company. 


These  bonds  sold  in  1902  on 

a  4.20  to  4.35  basis 

1903 

4.25 

4.50 

1904 

4.15 

4.50 

1905 

4.00 

4.125 

1906 

4.125 

1907 

4.35 

4.45 

1908 

4.35 

4.70 

1909 

4.22 

4.30 

1910 

4.35 

4.50 

1911 

4.40 

4.55 

1912 

4.70 

4.75 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


NEW   YORK,    CHICAGO    &   ST.   LOUIS   RAILROAD 

First  Mortgage  Sinking  Fund  4s 

Dated  October  1,  1887  Maturing  October  1,  1937 

Interest  payable  April  1  and  October  1  at  tiie  Union  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  .$20,000,000  Outstanding  $18,979,000 

Per  mile  .    .  38,300 

$1,021,000  bonds  of  the  above  issue  have  been  retired  by  the  sinking  fund. 

Sinking  fund:  "Whenever  the  net  earnings  for  the  year  ending  September  30  shall  equal  or  exceed  $900,000 
the  company  shall  pay  to  the  trustee  $100,000  to  be  applied  to  the  purchase  of  bonds  at  not 
exceeding  102  and  accrued  interest,  the  bonds  to  be  obtained  through  advertisements.  If  in 
any  year  $900,000  be  not  earned  over  operating  expenses,  or  if  the  trustee  be  unable  to  pur- 
chase any  bonds  at  said  price,  the  company  shall  not  be  required  to  make  this  payment." 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  494.72  miles  of  road  extending  from  Buffalo, 

N.  Y.,  to  the  Indiana-Illinois  State  Line,  and  on  trackage  rights,  lands,  buildings,  equipment 
and  future  acquisitions. 

Trustee:  The  (Central  Trust  Company,  New  York. 

The  New  York,  ('hicago  &  St.  Louis  Railway  Company  was  organized  in  1881  l)y  the  consolida- 
tion of  comj)anies  that  had  been  incorporated  but  not  constructed.     Construction  was  commenced 

[  856  ] 


immediately  after  the  organization  and  the  road  was  opened  in  October,  1882.  In  1885  interest 
was  defaulted  and  a  receiver  appointed.  In  1887  the  Railway  Company  was  sold  under  foreclosure 
and  the  new  company  consolidated  with  the  Erie  &  State  Line  Railroad,  the  Cleveland  &  State  Line 
Railroad  and  the  Fort  Wayne  &  Illinois  Railroad  Companies,  forming  the  present  company. 

The  New  York,  Chicago  &  St.  Louis  Railroad  Company,  although  operated  as  an  independent 
organization,  is  controlled  by  the  Lake  Shore  &  Michigan  Southern  Railway  Company  through 
ownership  of  $2,503,000  of  the  $5,000,000  first  preferred,  $6,275,000  of  the  $11,000,000  second  pre- 
ferred, and  $6,240,000  of  the  $14,000,000  common  stocks. 

These  bonds  sold  in  1902  on  a  3.60  to  3.80  basis 


1903 

3.75 

4.08 

1904 

3.67 

3.85 

1905 

3.67 

3.77 

1906 

3.67 

3.90 

1907 

3.80 

4.40 

1908 

3.80 

4.30 

1909 

3.87 

4.02 

1910 

3.98 

4.15 

1911 

3.98 

4.10 

1912 

3.95 

4.15 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


NEW   YORK,    CHICAGO    &   ST.   LOUIS   RAILROAD 
25-year  Debenture  Gold  4s 

Dated  March  28,  1906  Maturing  May  1,  1931 

Interest  payalile  May  1  and  November  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Registered  bonds  of  $1,000,  $5,000,  $10,000,  $20,000,  $50,000  and  multiples  of  $5,000. 

Coupon  and  registered  bonds  interchangeable. 

.Authorized  $10,000,000  Outstanding  $10,000,000 

Security:  The  abo\-e  bonds,  although  not  secured  by  a  mortgage,  are  a  direct  obligation  of  the  company, 

which  covenants  that  "so  long  as  any  of  said  bonds  are  outstanding  and  unpaid,  the  Railroad 
Company  will  not  make  any  new  mortgage  upon  its  railroad,  without  also  thereby  including 
therein  every  bond  issued  under  this  indenture  equally  and  ratably  with  every  bond  issued 
under  and  secured  by  any  such  mortgage;  but  this  covenant  shall  not  prevent  the  renewal 
or  extension  of  any  existing  mortgage." 

Trustee:  Guaranty  Trust  Company,  New  York. 

For  history  of  the  New  York,  Chicago  &  St.  Louis  Railroad  Company,  see  above. 

These  bonds  sold  in  1908  on  a  3.67  to  4.10  basis 

1909  4.45   4.63 

1910  4.60   4.75 

1911  4.60   4.80 

1912  4.70   5.00 
[  357  ] 


PITTSBURGH    &   LAKE   ERIE   RAILROAD 
First  Mortgage  6s 

Dated  January  1,  1878  Maturing  January  1,  1928 

Interest  payable  January  1  and  July  1  at  the  Company's  oflSce,  Pittsburg. 

Coupon  bonds  of  $1,000. 

Authorized  $2,000,000  Outstanding  $2,000,000 

Per  mile  .    .  28,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  71.25  miles  of  road,  including  the  64.73 

miles  from  Pittsburg,  Pa.,  to  Hazelton,  O.;  also  on  all  property,  branches,  lands,  buildings, 
rolling  stock,  incomes  and  franchises. 

Trustee:  Safe  Deposit  Company  of  Pittsburg. 

The  Pittsburgh  &  Lake  Erie  Railroad  Company  was  chartered  under  the  laws  of  Pennsylvania 
on  May  18,  1875.  The  line  was  opened  for  traffic  in  1879.  The  road  is  operated  independently, 
but  is  controlled  by  the  Lake  Shore  &  Michigan  Southern  Railway  Company  through  ownership 
of  $12,600,200  capital  stock. 

These  bonds  were  quoted  in  1909  on  a  4.10  basis  (bid) 

1910  4.30 

1911  4.30 

1912  4.55 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Maine, 
Connecticut  and  Rhode  Island. 


PITTSBURGH    &   LAKE   ERIE   RAILROAD 

Second  Mortgage  5s 

Dated  April  1,  1889  Maturing  January  1,  1928 

Interest  payable  Ajnil  1  and  October  1  at  the  New  York  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $2,000,000  Outstanding    $2,000,000 

Per  mile  .    .  28,000 

Security :  The  above  bonds  are  secured  by  a  second  mortgage  on  the  same  ]}roperty  covered  by  the  first 

lien  of  the  Pittsburgh  &  Lake  Erie  First  6s  of  1928. 

Trustee:  New  York  Trust  Comi)any,  New  York. 

For  history  of  the  Pittsburgh  &  Lake  Erie  Railroad  Com])any,  see  above. 

[  358  ] 


These  bonds  sold  in  1906  on 

a  4.45  basis 

1908 

5.00 

1909 

5.00 

1910 

5.00  (bid) 

1911 

4.70  (bid) 

1912 

4.55 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode 
Island. 


BEAVER    &   ELLWOOD   RAILROAD 

First   Mortgage  4s 

Dated  July  1,  1899  Maturing  June  1,  1919 

Interest  payable  June  1  and  December  1  at  the  Guaranty  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $150,000  Outstanding  $150,000 

Per  mile  .    .       20,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  7.51  miles  of  road,  branches  and  spurs, 

including  the  2.93  miles  from  Ellvvood  Junction  to  Ellwood   City,  Pa.,  also  on  buildings,  ex- 
tensions, real  estate,  franchises,  etc. 

Redemption :      These  bonds  are  redeemable  at  par  and  interest. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  Beaver  &  Ellwood  Railroad  Company  was  chartered  under  the  law.s  of  Pennsylvania  and 
constructed  in  1890.  The  road  was  leased  for  "20  years  from  May  1,  1899,  to  the  Pittsburgh  &  Lake 
Erie  Railroad  Company,  which  owns  the  entire  capital  stock. 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 

The  eMire  issue  was  called  for  payment  on  December  1,  1912. 


[  359  ] 


PITTSBURGH,   McKEESPORT    &  YOUGHIOGHENY   RAILROAD 
First  Mortgage  6s 

Dated  July  1,  1882  Maturing  July  1,  1932 

Interest  payable  January  1  and  July  1  at  the  Union  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $2,250,000  Outstanding  $2,250,000 

Per  mile  .    .  36,880 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  61.23  miles  of  road,  including  the  56.83 

miles  extending  from  Pittsburg  to  New  Haven,  Pa.;  also  on  lands,  buildings,  rolling  stock, 
franchises  and  incomes. 

The  bonds  are  GUARANTEED  jointly  and  severally  as  to  PRINCIPAL  and  INTEREST 
by  the  Lake  Shore  &  Michigan  Southern  Railway  Company  and  the  Pittsburgh  &  Lake  Erie 
Railroad  Company. 

The  Pittsburgh,  McKeesport  &  Youghiogheny  Railroad  Company  was  chartered  under  the 
laws  of  Pennsylvania,  August  4,  1881.  The  road  was  opened  for  traffic  in  1883.  On  January  1,  1884, 
the  property  was  leased  for  999  years  from  August  3,  1881,  to  the  Pittsburgh  &  Lake  Erie  Railroad 
Company,  at  an  annual  rental  equal  to  the  interest  on  the  first  and  second  mortgage  bonds  and  divi- 
dends at  the  rate  of  6%  on  the  stock.  In  addition,  the  principal  and  interest  on  the  first  and  second 
mortgage  bonds,  and  dividends  on  the  stock  are  guaranteed  by  the  Pittsburgh  &  Lake  Erie  and  the 
Lake  Shore  &  Michigan  Southern  Railway  Companies,  which  agree  to  redeem  the  stock  on  July  1, 
1934,  at  par. 

These  bonds  sold  in  1903  on  a  3.80  basis 

1909  3.95 

1910  4.40  (bid) 

1911  4.47  (bid) 
December,  1912  4.70  (bid) 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massa- 
chusetts, Connecticut  and  Rhode  Island. 


PITTSBURGH,   McKEESPORT   &  YOUGHIOGHENY   RAILROAD 

Second  Mortgage  6s 

Dated  July  15,  1884  Maturing  July  1,  1934 

Interest  payable  January  1  and  July  1  at  the  Union  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $1,750,000  Outstanding  $1,000,000 

Per  mile  .    .  16,400 

Security :  The  above  bonds  are  secured  I>y  a  second  mortgage  on  the  property  covered  by  the  first  mortgage 

of  the  Pittsburgh,  McKeesport  &  Youghiogheny  First  6s  of  1932  (see  above). 

[  360  ] 


The  bonds  are  GUARANTEED  jointly  and  severally  as  to  PRINCIPAL  and  INTEREST 
by  the  Pittsburgh  &  Lake  Erie  Railroad  and  the  Lake  Shore  &  Michigan  Southern  Railway 
Companies  by  endorsement. 

For  history  of  the  Pittsburgh,  McKeesport  &  Youghiogheny  Raih-oad  Company,  see  page  360. 

These  bonds  were  quoted  in  1909  on  a  4.40  basis  (bid) 

1910  4.60 

1911  4.40 
December,  1912           4.35 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


McKEESPORT    &   BELLE   VERNON   RAILROAD 

First  Mortgage  6s 

Dated  July  2,  1888  Maturing  July  1,  1918 

Interest  payable  January  1  and  July  1  at  Fidelity  Title  &  Trust  Company,  Pittsburg. 

Coupon  bonds  of  .$1,000,  registerable  as  to  principal. 

Authorized  .$600,000  Outstanding    .$()00,000 

Per  mile  .    .        21,430 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  27.80  miles  of  road,  extending  from  Rey- 

noldton  to  Belle  Vernon,  Pa.;  also  on  lands,  buildings,  rolling  stock,  franchises,  incomes,  etc. 

The  bonds  have  been  ASSUMED  by  the  Pittsburgh,  McKeesport  &  Youghiogheny  Railroad 
Company. 

Trustee:  Fidelity  Title  &  Trust  Company,  Pittsburg. 

The  McKeesport  &  Belle  Vernon  Railroad  Company  was  chartered  in  1886,  and  the  road  was 
opened  for  traffic  in  1890.  In  1890  tlie  company  was  consolidated  with  the  Pittsburgh,  McKeesport 
&  Youghiogheny  Railroad  Company,  which  owned  the  entire  capital  stock. 

These  bonds  were  quoted  in  1909  on  a  4.45  basis  (bid) 

1910  4.95 

1911  4.65 

1912  5.00 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Connecticut. 


BOND   DESCRIPTIONS    OF   CONTROLLED   ROADS 

Following  is  a  descrii)tion  of  the  bond  issues  of  com])anies  operated  independently  but  con- 
trolled through  stock  ownership  by  the  Lake  Shore  &  Michigan  Southern  Railway  Company: 

[  361  ] 


INDIANA  HARBOR  BELT  RAILROAD 


General  Mortgage  4s  and  2s 

Dated  July  1,  1907  Maturing  July  1,  1957 

Interest  payable  January  1  and  July  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000  and  multiples  of  $5,000. 

Coupon  and  registered  bonds  interchangeable. 


Authorized  $25,000,000 


Outstanding  (4s)   $1,725,000 

(2s)     2,500,000 

Per  mile   .    .    .  98,250 


Provisions  of      The  $4,225,000  outstanding  comprise  two  issues,  $1,725,000  bearing  4%  interest  per  annum, 
issue:  and  $2,500,000  bearing  interest  at  the  rate  of  2%  per  annum  the  first  five  years,  3%  per  annum 

the  second  five  years,  and  4%  per  annum  thereafter. 

In  addition  to  the  amount  outstanding,  $18,275,000  are  reserved  for  improvements,  additions, 
etc.,  and  $2,500,000  are  reserved  to  retire  a  like  amount  of  Cincinnati,  Hamilton  &  Western 
6s  of  1927. 


Security:  These  bonds  are  secured  by  a  direct  mortgage  on  42.68  miles  of  road.     They  are  secured  by  a 

first  mortgage  on  16.99  miles,  and  by  a  second  mortgage  on  25.69  miles,  covered  as  a  first  lien 
by  the  Chicago,  Hammond  &  Western  First  6s  of  1927  (see  below).  They  are  also  secured  by 
mortgage  on  lands,  buildings,  rolling  stock  and  franchises  in  connection  with  said  railroads, 
and  all  projierties  hereafter  acquired  by  the  use  of  bonds  issued  hereunder,  and  all  incomes 
thereof. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  jointly  and  severally 
by  the  Lake  Shore  &  iNIichigan  Southern  Railway  Company  and  the  Michigan  Central  Rail- 
road Company. 


Trustee:  Guaranty  Trust  Company,  New  York. 


The  Indiana  Harbor  Belt  Railroad  was  chartered  under  the  laws  of  Indiana  on  May  16,  1896, 
as  the  East  Chicago  Belt  Railroad  Company.  On  June  29,  1907,  the  present  title  was  adopted.  The 
road  connects  the  Atchison,  Topeka  &  Santa  Fe,  the  Baltimore  &  Ohio,  the  Chicago,  Milwaukee  & 
St.  Paul,  the  Chicago  &  Northwestern,  the  Chicago,  Burlington  &  Quincy,  the  Chicago,  Rock  Island 
&  Pacific,  the  Cleveland,  Cincinnati,  Chicago  &  St.  Louis,  the  Erie,  the  Illinois  Central,  the  Lake 
Shore  &  Michigan  Southern,  and  other  roads  entering  Chicago. 

The  road  is  operated  independently.  Of  the  capital  stock,  60%  is  owned  ecjually  by  the  Lake 
Shore  &  Michigan  Southern  Railway  and  the  Michigan  Central  Railroad  Companies,  and  40%  is 
owned  equally  by  the  Chicago  &  Northwestern  and  the  Chicago,  Milwaukee  &  St.  Paul  Railway 
Companies. 


The  above 


bonds  are  considered  a  legal  investment  for  savings  banks  in  New 


Hampshi 


ire. 


362  ] 


CHICAGO,   HAMMOND    &  WESTERN  RAILWAY 
First  Mortgage  6s 

Dated  January  1,  1897  Maturing  January  1,  1927 

Interest  payable  January  1  and  July  1  at  the  Central  Trust  Company,  New  York. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $2,500,000  Outstanding  $2,500,000 

Per  mile  .    .  96,150 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  25.69  miles  of  road,  including  11.21  miles 

from  Franklin  Park  to  McCook,  111.,  and  14.48  miles  from  Blue  Island,  111.,  to  Whiting,  Ind.; 
also  on  lands,  buildings,  franchises  and  incomes. 

The  bonds  have  been  ASSUMED  by  the  Indiana  Harbor  Belt  Railroad  Company. 

Equity:  This  issue  is  prior  in  lien  to  the  Indiana  Harbor  Belt  Railroad  General  4s  and  2s  of  1957,  a 

sufficient  number  of  which  have  been  reserved  to  provide  for  the  retirement  of  this  issue. 

Trustee:  E.  Francis  Hyde,  Esq. 

The  Chicago,  Hammond  &  Western  Railway  Company  was  chartered  under  the  laws  of  Illinois 
on  April  21,  1896.  In  1898  it  was  consolidated  with  the  Chicago  &  Indiana  State  Line  Railway  under 
the  name  of  the  Chicago  Jimction  Railway.  July  1,  1907,  the  Chicago  Junction  Railway  Company 
sold  the  property  that  had  been  the  Chicago,  Hammond  &  Western,  now^  known  as  the  "Outer 
Line,"  to  the  Indiana  Harbor  Belt  Railroad,  which  assumed  the  First  Mortgage  6s  of  1927  as  above. 

These  bonds  were  quoted  in  1909  on  a  4.65  basis  (bid) 

1910  4.70 

1911  4.60 

1912  4.50 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


TOLEDO    &   OHIO   CENTRAL   RAILWAY 

First  Mortgage  5s 

Dated  July  1,  1885  Maturing  July  1,  1935 

Interest  payable  January  1  and  July  1  at  the  Central  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $5,000,000  Outstanding  $3,000,000 

Per  mile  .    .  15,230 

In  accordance  with  the  terms  of  the  Toledo  &  Ohio  Central  Western  Division  Mortgage  and 
the  General  JSIortgage,  no  further  bonds  are  to  be  issued. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  197.27  miles  of  road,  including  the  160.57 

miles  from  Toledo  to  Bremen,  O.;  also  on  all  extensions  hereafter  made  or  acquired  to  or 
[  363  ] 


within  Toledo  and  Columbus,  and  on  terminal  property  hereafter  acquired  in  Toledo,  Columbus 
and  Coming.     They  are  also  secured  on  lands,  buildings,  rolling  stock,  franchises,  incomes,  etc. 

Equity:  These  bonds  are  prior  in  lien  to  $2,500,000  Toledo  &  Ohio  Central  Western  Division  5s  of  1935 

and  $2,000,000  General  5s  of  1935. 

Trustee:  Central  Trust  Company,  New  York. 

The  Toledo  &  Ohio  Central  Railway  Company  was  incorporated  under  the  laws  of  Ohio  on 
June  30,  1885,  as  a  reorganization  of  the  Ohio  Central  Railroad  Company.  The  road  is  controlled 
by  the  Lake  Shore  &  Michigan  Southern  Railway  Company  through  ownership  of  the  entire  out- 
standing capital  stock. 

These  bonds  sold  in  1902  on  a  4.20  to  4.30  basis 


1903 

4.25 

4.48 

1904 

4.125 

4.27 

1905 

4.05 

4.15 

1906 

4.05 

4.30 

1907 

4.30 

5.00 

1908 

4.40 

4.875 

1909 

4.20 

4.35 

1910 

4.20 

4.60 

1911 

4.30 

4.40 

1912 

4.35 

4.62 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


TOLEDO   &   OHIO   CENTRAL   RAILWAY 

Western  Division 
First  Mortgage  5s 

Dated  October  1,  1892  Maturing  October  1,  1935 

Interest  payable  April  1  and  October  1  at  the  Central  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $2,500,000  Outstanding  $2,500,000 

Per  mile  .    .  6,330 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  394.91  miles  of  road.     They  are  secured 

by  a  first  mortgage  on  137.74  miles  from  Whitmore  to  Truro  Junction,  O.;  and  by  a  second 
mortgage  on  the  197.27  miles  covered  as  a  first  lien  by  the  Toledo  &  Ohio  Central  First  5s  of 
1935;  and  by  a  third  mortgage  on  59.90  miles  covered  as  a  first  lien  by  the  St.  Mary's  Division 
First  4s  of  1951. 

Equity:  This  issue  is  prior  in  lien  to  the  Toledo  &  Ohio  Central  General  5s  of  1935. 

Trustee:  New  York  Trust  Company,  New  York. 

For  history  of  the  Toledo  &  Ohio  Central  Railway  Company,  see  above. 

[  364  ] 


These  bonds  sold  in  1902  on 

a  4.22  basis 

1903 

4.25 

to  4.40  basis 

1904 

4.35 

1905 

4.05 

4.15 

1906 

4.10 

4.30 

1907 

4.30 

5.35 

1908 

4.40 

4.875 

1909 

4.25 

1910 

4.375  (bid) 

1911 

4.45 

(bid) 

1912 

4.45 

TOLEDO    &   OHIO   CENTRAL   RAILWAY 
General  Mortgage  5s 

Dated  June  1,  1894  Maturing  June  1,  1935 

Interest  payable  June  1  and  December  1  at  the  Central  Trust  Company,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $2,000,000 


Outstanding  $2,000,000 
Per  mile   .    .    .       5,065 


Security:  These  bonds  are  secured  by  direct  mortgage  on  394.91  miles  of  road.     They  are  secured  by  a 

second  mortgage  on  the  137.74  miles  covered  as  a  first  lien  by  the  Toledo  &  Ohio  Central 
Western  Division  First  5s  of  1935;  by  a  third  mortgage  on  the  197.27  miles  covered  as  a  first 
lien  by  the  Toledo  &  Ohio  Central  First  5s  of  1935;  and  by  a  fourth  mortgage  on  the  59.90 
miles  covered  as  a  first  lien  by  the  Toledo  &  Ohio  Central  St.  Mary's  Division  First  4s  of  1951. 
They  are  also  secured  by  mortgages  on  rolling  stock,  real  estate,  terminal  properties,  franchises, 
incomes,  etc. 

Trustee:  Central  Trust  Company,  New  York. 

For  history  of  the  Toledo  &  Ohio  Central  Railway  Company,  see  page  364. 

These  bonds  .sold  in  1902  on  a  4.40  to  4.60  basis 


1903 

4.27 

4.70 

1904 

4.55 

4.80 

1905 

4.30 

4.55 

1906 

4.45 

4.625 

1907 

4.50 

5.35 

1908 

4.75 

5.30 

1909 

4.65 

4.95 

1910 

4.65 

5.05 

1911 

4.70 

4.90 

1912 

4.70 

4.80 

[  305 


TOLEDO    &   OHIO   CENTRAL  RAILWAY 

St.  Mary's  Division 
First  Mortgage  4s 

Dated  February  1,  1901  Maturing  February  1,  1951 

Interest  payable  February  1  and  August  1  at  the  Guaranty  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $500,000  Outstanding  $500,000 

Per  mile  .    .         8,330 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  59.90  miles  of  road  extending  from  Peoria  to 

St.  Mary's,  O.;  also  on  future  acquisitions,  etc. 

Equity:  This  issue  is  prior  in  lien  to  $500,000  St.  Mary's  Division  First  Preferred  Income  4s  of  1951; 

$2,500,000  Western  Division  First  5s  of  1935,  and  $2,000,000  General  5s  of  1935. 

Trustee :  Guaranty  Trust  Company,  New  York. 

For  history  of  the  Toledo  &  Ohio  Central  Railway  Company,  see  page  364. 

These  bonds  were  quoted  in  1909  on  a  4.40  basis  (bid) 

1910  4.60 

1911  4.70 

1912  4.85 


TOLEDO    &   OHIO    CENTRAL   RAILWAY 

St.  Mary's  Division 
First  Preference  Income  4s 

Dated  February  1,  1901  Maturing  February  1,  1951 

Interest  payable,  if  earned,  October  1  at  the  Second  National  Bank,  Toledo,  Ohio. 

Registered  bonds  of  $1,000. 

Authorized  $500,000  Outstanding  $500,000 

Per  mile  .    .         8,330 

Provisions  of      "  The  Company  .  .  .  shall  ascertain  and  declare  the  net  earnings  and  income  applicable  to 
issue:  the  payment  of  interest  on  the  bonds  issued  hereunder,  by  deducting  from  the  gross  earnings 

of  the  branch  line  herein  described,  all  sums  paid  for  interest  on  bonds  having  prior  lien,  and 
all  expenses  and  losses  of  operating  said  branch  railroad,  and  for  maintenance,  taxes,  repairs, 
renewals  and  such  betterments  to  the  road,  equipment  and  property  used  on  said  road  as  the 
Company  may  deem  necessary  and  apply  such  net  earnings  to  the  payment  of  the  interest  on 
the  bonds  issued  hereunder." 

[  366  ] 


Security:  These  bonds  are  secured   by   a  second  mortgage  on  the  59.90  miles  of  railroad  extending 

from  Peoria  to  St.  Mary's,  O.,  covered,  as  a  first  lien,  by  the  St.  Mary's  Division  First  4s 
of  1851. 

Trustee:  Standard  Trust  Company,  New  York. 

For  history  of  tlie  Toledo  &  Ohio  Central  Railway  Company,  see  page  364. 


TOLEDO   &   OHIO   CENTRAL   RAILWAY 

Equipment  Trust  Obligations 

On  December  31,  1911,  the  company  had  $1,304,000  of  Equipment  Trust  obligations  out- 
standing as  follows: 

$96,000  43-^s  maturing  semi-annually  to  January  1,  1913. 
308,000  4s  maturing  semi-annually  to  May  15,  1917. 
960,000  4s  maturing  semi-annually  to  January  1,  1920. 


KANAWHA   &   MICHIGAN   RAILWAY 
First  Mortgage  4s 

Dated  June  3,  1890  INIaturing  April  1.  1990 

Interest  payable  April  1  and  October  1  at  the  Central  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $15,000  per  mile  Outstanding  $'2,469,000 

Per  mile  .    .  14,700 

Security:  The  above  bonds  are  secured  bj'  direct  first  mortgage  or  by  first  collateral  mortgage  on  167 

miles  of  railroad  and  bridge.  They  are  secured  by  a  first  mortgage  on  167  miles  of  line,  includ- 
ing the  94  miles  from  Gauley  Bridge,  W.  Va.,  to  Point  Pleasant,  W.  Va.,  and  the  57  miles  from 
Corning  to  Hobson,  O.  They  are  secured  by  collateral  consisting  of  $1,000,000  Point  Pleas- 
ant Bridge  First  Mortgage  Bonds  (the  entire  issue)  and  $998,000  of  the  $1,000,000  capital 
stock. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Toledo  & 
Ohio  Central  Railway  (Company  by  endorsement. 

Trustee:  Central  Trust  Company,  New  York. 

The  Kanawha  &  Michigan  Railway  Company  was  chartered  April  23,  1890,  under  the  laws  of 
Ohio  and  West  Virginia  as  successor  to  the  Kanawha  &  Ohio  Railway  Company.  Control  of  the  road, 
which  had  been  held  by  the  Hocking  Valley  Railroad  Company,  was  sold  in  March,  1910,  to  the  Ches- 

[367] 


apeake  &  Ohio  Railway  and  the  Lake  Shore  &  Michigan  Southern  Railway  Companies,  and  these 
two  roads  now  own  jointly  practically  the  entire  outstanding  capital  stock. 


These  bonds  sold  in  1902  on  a  4.05  to  4.25  basis 

1903 

4.10 

4.55 

1904 

4.15 

4.40 

1905 

4.02 

4.20 

1906 

4.02 

4.20 

1907 

4.15 

5.05 

1908 

4.25 

4.80 

1909 

4.20 

4.40 

1910 

4.25 

4.45 

1911 

4.35 

4.45 

1912 

4.30 

4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


KANAWHA   &   MICHIGAN   RAILWAY 

Second  Mortgage  5s 

Dated  July  1,  1907  Maturing  July  1,  1927 

Interest  payable  January  1  and  July  1  at  the  ofBce  of  J.  P.  Morgan  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $2,500,000  Outstanding  $2,500,000 

Per  mile  .    .  14,800 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  167  miles  of  road  and  bridge  covered 

as  a  first  lien  by  the  Kanawha  &  Michigan  First  4s  of  1990. 

Redemption:  The  company  may  pay  off  any  or  all  of  these  bonds  on  any  interest  day  at  par  and  accrued 
interest,  on  three  months'  notice.  In  case  less  than  the  whole  number  of  bonds  are  to  be  re- 
deemed, the  trustee  shall  select  by  lot  the  numbers  of  those  to  be  paid  off. 

Trustee:  Standard  Trust  Company,  New  York. 

For  history  of  the  Kanawha  &  Michigan  Railway  Company,  see  page  367. 

These  bonds  were  quoted  in  1909  on  a  5.45  basis  (bid) 
These  bonds  sold  in  1910  5.05  to  5.35  basis 

1911  5.10       5.35 

1912  5.05       5.25 


Dated  July  1,  1912 


Authorized  $1,200,000 


KANAWHA   &   MICHIGAN   RAILWAY 

Equipment  Trust  434%  Gold  Notes 

Maturing  $60,000  each  January  1  and  July  1  until  July  1,  1922. 
Interest  payable  January  1  and  July  1  at  New  York. 


Coupon  notes  of  $1,000. 


Outstanding  $1,200,000 


Security :  The  above  notes  are  a  direct  obligation  of  the  company  and  are  secured  by  agreement  covering 

1,000  steel  drop  bottom  coal  cars,  100  Hart  convertible  steel  underframe  coal  and  ballast 
cars,  3  steel  underframe  passenger  cars,  2  steel  underframe  baggage  and  mail  cars,  10  consoli- 
dation freight  locomotives  and  2  switching  locomotives.  This  equipment  cost  $1,333,400, 
for  which  the  company  paid  $133,400  in  cash  and  issued  these  notes  for  the  remainder. 

Title  to  the  equipment  remains  with  the  Union  Trust  Company,  Trustee,  until  the  notes  are 
paid. 

Redemption :      These  notes  are  redeemable  on  any  interest  date  on  30  days'  notice  at  par  and  interest. 

Trustee:  Union  Trust  Company,  New  York. 

For  history  of  the  Kanawha  &  Michigan  Railway  Company,  see  page  367. 


[  369  ] 


LOUISVILLE  &  NASHVILLE  RAILROAD  COMPANY 


LOUISVILLE  &  NASHVILLE  RAILROAD  COMPANY 


HISTORY 

The  Louisville  &  Nashville  Railroad  was  chartered  on  March  5,  1850,  under  the  laws  of  the 
State  of  Kentucky.  The  plan  of  construction  called  for  a  line  from  Louisville,  the  tobacco  center  of 
Kentucky,  to  Nashville,  Tennessee.  After  some  delay,  the  road  was  constructed  and  finally  opened 
to  traffic  in  November,  1859. 

The  company  paid  its  first  dividend  —  6%  —  in  1864.  During  the  reconstruction  period  in 
the  South,  and  up  to  the  panic  of  1873,  the  road  earned  and  paid  substantial  dividends  on  its  out- 
standing stock. 

About  1870  it  began  a  policy  of  extension,  which  has  been  kept  up  even  to  the  present  day. 
As  a  result,  the  mileage  owned,  leased  and  operated  has  increased  from  less  than  400  to  more  than 
4,700  miles,  while  the  total  mileage  of  the  system,  including  controlled  lines,  amounts  to  nearly  8,000 
miles. 

By  far  the  most  important  acquisition  came  in  1902,  when  the  company  purchased  control  of 
the  Atlanta,  Knoxville  &  Northern  Railway,  and  the  Chicago,  Indianapolis  &  Louisville  Railway. 
All  the  capital  stock  of  the  former  was  acquired  in  April  of  that  year.  A  majority  of  the  capital  stock 
of  the  latter  was  purchased  jointly  by  the  Louisville  &  Nashville  Railroad  and  the  Southern  Rail- 
way Companies.  This  purchase  was  financed  through  the  issuance  of  joint  bonds,  of  which  there 
were  outstanding  on  June  30,  1911,  $11,827,000,  secured  by  $3,873,400  preferred  stock  and  $9,796,900 
common  stock  of  the  Chicago,  Indianapolis  &  Louisville  Railway  Company. 

It  was  in  November,  1902,  that  control  of  the  Louisville  &  Nashville  Railroad  was  acquired  by 
the  Atlantic  Coast  Line  Railroad  Company  through  the  purchase  of  $30,600,000,  being  a  majority 
of  the  capital  stock,  paying  therefor  $10,000,000  in  cash,  $35,000,000  in  4%  Fifty-year  Collateral 
Trust  Bonds  and  $5,000,000  in  its  own  conmion  stock. 

The  Louisville  &  Nashville  Railroad  Company  owns  $7,177,600,  or  72%,  of  the  capital  stock 
of  the  Nashville,  Chattanooga  &  St.  Louis  Railway,  a  system  operating  1,230  miles;  also  a  majority 
of  the  stock  of  the  Louisville,  Henderson  &  St.  Louis  Raih-oad,  purchased  in  1905.  The  Louisville 
&  Nashville  Railroad  and  the  Atlantic  Coast  Line  Railroad  Companies  have  leased  jointly  the  Georgia 
Railroad  Company  and  its  dependencies,  operating  a  total  of  571  miles. 

Besides  this,  the  company  owns  one-half  the  capital  stocks  of  the  Central  Transfer  Railway 
&  Storage  Company,  and  the  Woodstock  &  Blockton  Railway  Company,  and  the  entire  capital 
stock  of  the  Madisonville,  Hartford  &  Eastern  Railroad.  In  June,  1909,  the  company  bought  the 
entire  capital  stock  and  the  bonds  of  the  Louisville  &  Atlantic  Railroad  Company,  operating  101 
miles.  In  November,  1909,  the  legal  title  to  the  property  rights,  privileges,  immunities  and  fran- 
chises had  been  conveyed  to  the  Louisville  &  Nashville  Railroad  Company,  and  from  that  time  the 
road  has  been  operated  as  a  part  of  its  system.  On  July  1,  1911,  the  property  of  the  Athens  &  Tellico 
Railway  Company  was  conveyed  to  the  Louisville  &  Nashville  Railroad  Company  and  operated  as  a 
part  of  its  system.  This  company  had  been  organized  in  March,  1910,  to  take  over  the  property 
and  franchises  of  the  Tellico  Railway  Company  and  operated  it  under  its  own  organization  until 
June  30,  1911. 

During  the  fiscal  year  of  1912  the  Louisville  &  Nashville  acquired  all  the  capital  stock  of  the 
Lexington  &  Eastern  Railway  Company,  which  owns  a  line  from  Lexington  to  Quicksand,  Kentucky, 

[  373  ] 


a  distance  of  96  miles.  This  company  is  constructing  a  line  from  Dumont  to  Neon,  Kentucky,  a 
distance  of  97  miles,  with  capital  advanced  by  the  Louisville  &  Nashville  Railroad  Company.  The 
Louisville  &  Nashville  Railroad  and  the  St.  Louis  &  San  Francisco  Railroad  Companies  have  each 
acquired  an  equal  number  of  shares  of  the  preferred  and  common  stock  of  the  New  Orleans, 
Mobile  &  Chicago  Railway  Company,  constituting  a  majority  of  the  outstanding  stock  of  the  same, 
and  under  an  agreement  dated  November  15,  1911,  between  the  two  companies,  the  operation  of 
the  road  will  be  continued  as  a  separate  organization. 

The  property  of  the  Louisville  &  Nashville  Terminal  Company  is  leased  jointly  by  the  Louis- 
ville &  Nashville  Railroad  Company  and  the  Nashville,  Chattanooga  &  St.  Louis  Railway  Company. 
A  new  terminal  at  Memi)his  was  put  into  operation  April  1,  1912,  for  the  joint  use  of  the  above 
and  also  the  Southern  Railway  Company,  the  St.  Louis,  Iron  Mountain,  Southern  Railway  Com- 
pany, and  the  St.  Louis  Southwestern  Railway  Company. 


PROPERTY 

Li  the  annual  report  of  the  company  for  the  fiscal  year  ending  June  30,  1912,  the  following 
statement  of  mileage  is  given: 

Miles  owned  in  fee 3,538.63 

Miles  operated  as  owner  of  entire  capital  stock 632.05 

Miles  operated  under  lease      118.97 

Miles  operated  for  owners 221.88 

Miles  operated  under  trackage  arrangements 228.96 

Total  miles  owned  and  operated 4,740.49 

The  average  miles  operated  by  the  company  were  4,709.93.  The  entire  system,  including 
controlled  lines,  embraced  a  total  mileage  of  7,947.83  miles. 

The  Louisville  &  Nashville  Railroad  System  extends  from  the  commercial  cities  of  Cincinnati, 
Louisville,  Evansville  and  St.  Louis  on  the  north,  southerly  across  the  States  of  Kentucky,  Ten- 
nessee, Alabama  and  Georgia,  to  New  Orleans,  Mobile  and  Pensacola.  It  taps  all  the  important 
points  of  the  Central  South. 

Its  controlled  lines  extend  into  Chicago  and  Indianapolis  on  the  north,  and  Atlanta,  Augusta 
and  Macon,  Ga.,  on  the  east.  The  populations  of  the  States  served  by  the  Louisville  &  Nashville 
Railroad  have  increased  from  6,839,000  in  1890  to  9,162,500  in  1910. 

Following  is  a  table  showing  the  equipment  of  the  Louisville  &  Nashville  Railroad,  and  operated 
lines,  for  the  years  1907  to  1912  inclusive: 


Class 

1907 

1908 

1909 

1910 

1911 

1912 

Locomotives  .    . 

865 

896 

899 

928 

971 

998 

Passenger  cars   . 

559 

572 

573 

590 

611 

620 

Freight  cars    . 

,    39,528 

40,589 

41,720 

43,019 

44,564 

44,727 

Work  cars  .    . 

1,452 

1,503 

1,421 

1,429 

1,648 

1,884 

[374  ] 


CAPITALIZATION 

The  capitalization  of  the  Louisville  &  Nashville  Railroad  Comiiany  for  the  fiscal  year  ending 
June  30,  1912,  was  approximately  as  follows: 

Capital  stock $60,000,000 

Funded  debt 155,220,157 

Nominal  capital $215,220,157 

Rentals  capitalized  @  5% 3,347,600 

Gross  capitalization      $218,567,757 

Securities  owned 27,744,444 

Net  capitalization $190,823,313 

Net  capital  per  mile  operated $40,514 

Average  miles  operated 4,709.93 

Net  income  to  net  capital 9-9% 

Fixed  charges  to  net  income 49.7% 

Margin  of  safety 50.3% 

In  the  foregoing  table  the  funded  debt  includes  all  the  mortgage  and  collateral  trust  bonds  of 
the  company,  $19,117,000  of  which  are  in  the  treasury  of  the  company,  together  with  $24,657  of 
plain  bonds,  debentures  and  notes  —  obligations  of  the  company.  The  rentals,  which  have  been 
capitalized  at  5%,  are  the  guaranteed  dividends  on  the  stock  of  the  Nashville  &  Decatur  Railroad 
and  additions  and  betterments  on  the  same. 

The  Louisville  &  Nashville's  net  capitalization  per  mile  operated,  and  the  ratio  of  net  income  to 
net  capital,  as  given  above,  compare  favorably  with  the  Illinois  Central's  net  capitalization  per 
mile  of  $53,024,  upon  which  it  earned  6.3%,  and  that  of  the  Atlantic  Coast  Line  Railroad,  $34,303, 
with  recorded  earnings  of  9.1%.  The  averages  of  these  three  similar  properties  for  ten  years  ending 
June  30,  1912,  are  as  follows: 

Net  capital  Net  income 

per  mile  to  net  capital 

Louisville  &  Nashville $39,660  9.1% 

Illinois  Central 49,035  8.9 

Atlantic  Coast  Line  (ending  1911) 30,185  8.5 

Since  1900  the  Louisville  &  Nashville  Railroad  has  increased  its  capitalization  nearly  $47,000,000, 
or  28%.  On  the  other  hand,  earnings  have  increased,  in  that  time,  $28,500,000,  or  over  100%.  The 
following  table  shows  these  increases: 

Year  Capital  stock  Funded  debt  Total  Gross  revenue 

1900     ....     $55,000,000       $113,264,660        $168,264,660  $27,742,379 

1912     ....       60,000,000         155,220,157  215,220,157  56,211,788 


Increase $46,955,497  $28,469,409 

Per  cent  of  increase    .    .    .  28%  102% 

To  offset  its  capitalization,  in  1900  the  company  reported  capital  assets  of  approximately 
$153,000,000,  of  which  $115,000,000  represented  cost  of  road  and  equipment.  In  1912  these  capital 
assets  had  increased  to  $216,000,000,  of  which  $177,000,000  was  the  amount  at  which  property  and 

[375  ] 


equipment  was  carried  on  the  balance  sheet.     This  is  a  gain  of  capital  assets  of  approximately 
$63,000,000. 

At  a  meeting  of  the  stockholders  of  the  company  on  October  2,  1912,  the  directors  were  given 
authority  to  issue  $12,000,000  additional  capital  stock  at  par.  Every  stockholder  has  the  privilege 
of  subscribing  to  an  additional  amount  of  shares  equal  to  20%  of  his  holdings. 


CHARACTER   OF  TRAFFIC 

The  Louisville  &  Nashville  Railroad  Company  gives  no  account  of  its  traffic  tonnage.  It  is  a 
well-known  fact,  however,  that  cotton  is  the  principal  commodity  carried.  The  road  also  taps  large 
mineral  deposits  in  Alabama  and  should  have  considerable  tonnage  from  that  source.  It  is  not 
unreasonable  to  suppose  that  the  Louisville  &  Nashville  gets  its  share  of  the  grain  products,  especially 
since  it  touches  important  Gulf  ports.  This  should  be  especially  true  with  the  opening  of  the  Panama 
Canal. 

Based  on  the  earnings  of  the  company,  nearly  three-quarters  of  its  gross  business  is  freight. 
Following  are  some  of  the  more  salient  freight  statistics  of  the  Louisville  &  Nashville  for  the  years 
1907  to  1912  inclusive: 

Year  Freight 

density 

1907 1,020,735 

1908 924,686 

1909 968,785 

1910 1,124,001 

1911 1,108,008 

1912 1,098,169 

In  1908  the  company's  freight  business  decreased,  and  with  a  decline  in  the  average  rate,  earn- 
ings fell  nearly  $4,000,000.  Since  that  time,  however,  the  road's  freight  density  (except  in  1912) 
and  earnings  have  shown  satisfactory  increases.  Efficiency  in  operation  is  shown  by  the  healthy  in- 
crease in  the  average  number  of  revenue  tons  carried  per  train.  Every  train  load  averaged  54  tons 
heavier  in  1912  than  in  1907,  a  gain  of  23%.  For  the  decade  ending  1912,  the  Louisville  &  Nashville's 
average  train  load  has  been  249  tons.  Although  not  as  high  as  the  average  figure  of  the  Illinois  Central. 
340  tons,  it  was  considerably  higher  than  that  of  the  Atlantic  Coast  Line  Railroad,  which  reported 
an  average  for  the  decade  of  but  186  tons. 

Fully  one-quarter  of  the  company's  business  is  passenger.  With  the  exception  of  1909,  there  has 
been  a  steady  increase  since  1907  in  the  number  of  passengers  carried  one  mile  per  mile  of  road,  and 
also  in  passenger  earnings,  even  in  the  face  of  declining  rates. 

Year  Passenger      Number  of  Passenger  Average  rate 

density       passengers  earnings  per  passenger 

per  train  per  mile 

1907 100,509  45  $12,399,326  $.0236 

1908 102,385  47  12,725,556  .0237 

1909 98,719  45  12,335,095  .0232 

1910 104,747  47  13,308,948  .0226 

1911 111,270  48  14,201,524  .0227 

1912 113,052  49  14,806,088  .0229 

Passenger  earnings  in  1907  were  the  largest  the  company  had  ever  reported,  yet  during  the 
fiscal  year  1912  the  number  of  passengers  ca,rried  one  mile  per  mile  of  road  showed  an  increase  of 

[  376  ] 


Train 
load 
tons 

Freight 
earnings 

Average  rate 
per  ton 
per  mile 

231 

$35,235,787 

$.0080 

234 

31,334,940 

.0078 

267 

32,465,969 

.0076 

278 

38,421,779 

.0075 

275 

39,066,033 

.0077 

285 

40,601,288 

.0079 

13%  over  tlie  figure  of  1907.  The  number  of  passengers  carried  per  train  averaged  10%  higher, 
while  earnings  were  nearly  20%  gi-eater  in  spite  of  a  decline  in  the  average  rate  per  passenger  per  mile 
from  2.36  cents  to  2.29  cents. 

EARNINGS 


The  earnings  of  the  Louisville  &  Nashville,  especially  in  1910  and  1912,  showed  substantial  gains. 
Following  are  the  gross  and  net  revenues  of  the  company,  also  based  on  the  average  miles  operated, 
for  the  years  1907  to  1912  inclusive: 


Year 

Average 

Gross 

Per  mile 

Net 

Per  mile 

Operating 

miles 

earnings 

earnings 

ratio 

operated 

1907     . 

,     4,306 

$48,263,945 

$11,207 

$12,482,642 

$2,898 

74.14% 

1908     . 

.     4,348 

44,620,281 

10,262 

11,025,990 

2,537 

75.29 

1909     . 

.     4,393 

45,425,891 

10,340 

15,798,392 

3,597 

65.22 

1910     . 

.     4,554 

52,433,382 

11,512 

17,447,803 

3,831 

66.72 

1911     . 

.     4,598 

53,993,741 

11,741 

15,513,918 

3,373 

71.27 

1912     . 

.    .     4,710 

56,211,788 

11,934 

16,585,461 

3,521 

70.19 

Gross  revenues  fell  off  over  $3,600,000  in  1908  from  the  record  figures  of  1907,  due  to  the  general 
business  depression.  A  curtailment  of  expense  followed  this  decline  in  1908  and  1909,  so  that  the 
company,  in  the  latter  year,  was  able  to  show  net  earnings  of  nearly  $15,500,000  as  compared  with 
$11,025,000  in  1908.  The  company's  operating  ratio  in  1909  declined  10%,  to  65.22%,  due  to  an 
increase  in  gross  revenue  of  $800,000  and  a  decrease  in  maintenance  charges  of  $2,200,000  and  in 
transportation  costs  of  $1,750,000. 

In  1910,  with  the  return  of  better  times  in  the  South,  gross  revenues  climbed  to  over  $52,000,000, 
while  operating  expenses  were  increased  but  sufficiently  to  cover  the  cost  of  handling  the  additional 
business  received.  This  enabled  the  company  to  show  a  record  net  revenue  of  nearly  $17,500,000 
for  the  j'car.  Increasing  costs  of  transportation  during  1911,  however,  cut  net  earnings  for  that  year 
considerably.  This  was  due  in  a  considerable  extent  to  a  higher  wage  scale  which  went  into  effect 
early  in  1911.  As  a  result  the  company's  ratio  of  operating  expenses  to  operating  revenues  in- 
creased from  66.72%  in  1910  to  71.27%  in  1911. 


MAINTENANCE 


During  the  decade  ending  1912,  maintenance  has  averaged  $3,500  per  mile.  The  average  traffic 
density  has  been  in  the  neighborhood  of  1,104,750.  The  Illinois  Central,  with  an  average  traffic 
density  of  1,481,240,  spent  but  slightly  over  $3,705  per  mile  during  the  same  period,  while  the  Atlan- 
tic Coast  Lme  Railroad,  with  an  average  density  of  but  384,000,  since  1903,  spent  approximately 
$1,600  each  year. 

The  following  amounts  have  been  spent  for  maintenance  of  way  and  equipment  by  the  Louis- 
ville &  Nashville  since  1907: 

Year  Maintenance  Total  Per  mile 

Way  Equipment  maintenance 

1907 $8,065,898  $8,709,610  $16,775,508  $3,896 

1908 6,291,108  9,020,127  15,311,235  3,520 

1909 5,257,037  7,832,021  13,089,058  2,979 

1910 8,172,166  8,559,104  16,731,270  3,673 

1911 9,178,192  9,490,759  18,668,951  4,060 

1912 8,828,755  10,071,304  18,900,059  4,013 

[  377  ] 


Since  1907,  the  Louisville  &  Nashville  has  spent  $100,000,000  for  maintenance  alone.     This  is 
an  average  of  $16,600,000  each  year,  or  nearly  $3,690  per  mile  of  road  in  operation. 


ADDITIONS   AND   BETTERMENTS 

It  has  been  the  policy  of  the  company  for  a  number  of  years  to  make  liberal  outlays  for  additions 
and  betterments  from  current  income,  in  addition  to  maintenance  expenditures.  Since  July  1,  1907, 
in  accordance  with  the  rulings  of  the  Interstate  Commerce  Commission,  the  road's  disbursements 
for  additions  and  betterments  have  been  charged  to  Property  Investment  Account.  For  the  decade 
prior  to  July  1,  1907,  over  $17,000,000  had  been  charged  to  income  and  put  directly  back  into  the 
property.  The  following  table  shows  the  amounts  spent  since  1908  for  betterments,  all  of  which  have 
been  charged  to  Property  Investment. 

Year  Improvements 

Way  Equipment 

1908 $1,690,468 

1909 866,546 

1910 1,890,462  $1,038,281 

1911 2,365,291  2,758,795 

1912 4,819,586  1,664,199 

$11,632,353  $5,461,275 

11,632,353 

Total $17,093,628 


DIVIDENDS 

The  Louisville  &  Nashville  Railroad  Company  has  paid  from  the  date  of  its  organization  to 
and  including  August,  1912,  63  cash  dividends  aggregating  189^/5%,  or  $61,237,962.  The  follow- 
ing dividends  have  been  paid  since  1880: 


1880 

8% 

100%  (stock) 

1881 

6 

1882 

3 

1888-9 

5%  (stock) 

1890 

1.1 

4.9  (stock) 

1891 

5 

1892 

i'A 

1893 

4 

Year 

Rate 

1894-8 

1899 

3.5% 

1900 

4 

1901-4 

5 

1905-7 

6 

1908-9 

5.5 

1910-12 

7 

The  company,  on  its  balance  sheet  of  June  30,  1912,  showed  a  Profit  and  Loss  of  $37,095,000. 
Besides  this,  there  was  an  appropriated  surplus  of  $2,606,445,  the  two  equalling  66%  of  the  total 
outstanding  capital  stock. 

STATISTICS 

Following  are  the  capitalization,  earnings,  and  traffic  statistics  of  the  Louisville  &  Nashville  Rail- 
road, based  on  the  average  miles  operated,  for  the  year  1900  and  for  the  years  1905  to  1912  inclusive: 

[  378  1 


LOUISVILLE   &  NASHVILLE   RAILROAD 


Fiscal 

Capital 

Funded 

Rentals                  Gross 

Ow 

ned 

Net 

Average 

Extra 

year 

stock 

debt 

@5% 

capital 

by 

capital 

miles 

$1,051 

company 

operated 
3,007 

track 

1900 

$18,290 

$37,667 

$57,008 

$17,843 

$39,165 

50 

1905 

15,082 

29,886 

610 

46,184 

8, 

,220 

37,964 

3.820 

72 

190C 

14,524 

31,264 

814 

46,602 

7. 

,301 

39,301 

4.131 

73 

1907 

13,934 

31,363 

727 

46,024 

0,904 

.39,120 

4.306 

74 

1908 

13.790 

31,433 

734 

45,903 

7,470 

38,493 

4.348 

82 

1909 

13,658 

29,550 

704 

43,912 

6, 

,294 

37,618 

4,393 

112 

1910 

13,175 

34,118 

655 

47,948 

5, 

,238 

42,710 

4,554 

1911 

13,049 

33,784 

758 

47,591 

5, 

,732 

41,859 

4,598 

1912 

12,738 

32.955 

711 

46,404 

5, 

,890 

40,514 

4,710 

Fiscal 

Gross 

Maintenance             Transportation 

Net 

Other 

ToUl 

Fixed 

Surplus 

year 

operating 

and  general      operating 

income 

net 

charges 

available 

revenue 

Way           Equipment 

expense             revenue 

income 

for 

diWdends 

1900 

$9,224 

$1,313 

$1,239 

$3,633             $3,039 

$216 

$3,255 

$2,052 

$1,203 

1905 

10,066 

1,490 

1,658 

3,775 

3,143 

425 

3,568 

1,784 

1,784 

1906 

10,411 

1,583 

1,886 

4,019 

2,923 

379 

3,302 

1,765 

1,537 

1907 

11,207 

1,873 

2,023 

4,413 

2,898 

362 

3,260 

1,764 

1.496 

1908 

10,262 

1,446 

2,074 

4,205 

2,537 

304 

2,841 

1,825 

1,016 

1909 

10,340 

1,197 

1,782 

3,764 

3,597 

317 

3,914 

1,959 

1,955 

1910 

11,512 

1,794 

1,879 

4,008 

3,831 

407 

4,238 

1,952 

2,286 

1911 

11,741 

1,990 

2,064 

4.308 

3,373 

439 

3,812 

1,952 

1,860 

1912 

11,934 

1,875 

2,138 

4,400 

3,521 

517 

4,038 

2,009 

2,029 

Fiscal 

Dividends     Other 

Surplus 

Operating 

Total 

Conducting 

Fixed 

Gross 

^  Net 

Per  cent 

year 

charges 

expenses 

maintenance     transportatio 

n      charges 

earnings 

income 

earned  on 

to 

to  gross 

to  gross 

to  gross 

to  gross 

1           to  gross 

to  net 

capital 

income 

$501 

earnings 

earnings 

earnings 

earning 

s          capital 
;            16.2% 

capital 

8.3% 

stock 

1900 

$702 

67.06% 

27.67% 

39.39% 

22.2*^ 

6.5% 

1905 

941 

843 

68.77 

31.27 

37.50 

17.7 

21.7 

9.3 

11.3 

1906 

871 

666 

71.92 

33.28 

38.64 

16.9 

22.3 

8.4 

10.6 

1907 

836 

660 

74.14 

34.74 

39.40 

15.7 

24.3 

8.3 

10.7 

1908 

759         $389 

132* 

75.29 

34.27 

41.02 

17.8 

22.3 

7.4 

7.3 

1909 

751           197 

1,007 

65.22 

28.68 

36.54 

18.9 

23.5 

10.4 

14.3 

1910 

922 

1,'364 

66.72 

31.87 

34.85 

16.9 

24.0 

9.9 

17.3 

1911 

913 

947 

71.27 

34.45 

30.82 

16.7 

24.0 

9.1 

15.8 

1912 

891 

1,138 

70.49 

33.63 

36.86 

10.8 

25.7 

9.9 

15.9 

Fiscal 

Train              Main 

tenance       Conducting      Train          Rate  per  mile 

Freight            Train 

Freight 

Passenger, 

year 

mile                 per  revenue      transportation 

mile 

dens 

ity            load 

to  all 

freight 

earnings              train  mile         per  revenue  earnings        Per 

Per 

revenue 

!       traffic 

and 

(gross)           Way 

Equip-     train  mile        (i 

aet)       passenger 

ton 

tons 

company 

ment 

cars 

1900 

$1.61         $.230 

$.217 

$.637         $.526        $.0231 

$.0076 

858,544           223 

75% 

24,374 

1905 

1.73           .256 

.285 

.648 

.541          .0229 

.0079 

916,335           229 

72 

34,905 

1906 

1.72           .263 

.313 

.668 

.476          .0243 

.0080 

950,325           230 

73 

38,457 

1907 

1.74           .291 

.315 

.686 

.448          .0236 

.0080 

1,020,7 

'35            231 

73 

41,539 

1908 

1.73           .243 

.349 

.708 

,430          .0237 

.0078 

924,686           234 

70 

42.664 

1909 

1.82           .211 

.314 

.062 

.633          .0232 

.0070 

968,7 

'85           267 

72 

43.714 

1910 

1.90           .295 

.309 

.659 

.637          .0226 

.0075 

1,124,001           278 

73 

45.038 

1911 

1.88           .326 

.337 

.704 

,513          .0227 

.0077 

1,108,008           275 

72 

46.823 

1912 

2.00           .314 

.358 

.736 

.592          .0229 

.0079 

1,098.169           285 

73 

47.231 

*  Deficit. 

[  379  ] 


BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Louisville  &  Nash- 
ville  Railroad   System,   together  with   the   bases   on   which   they 
have  sold  during  the  decade  ending  December  31,  1912: 


LOUISVILLE   &  NASHVILLE  RAILROAD 


Unified  Mortgage  4s 


Dated  June  2,  1890 


Maturing  July  1,  1940 


Interest  payable  January  1  and  July  1  at  71  Broadway,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable  in  lots  of  $5,000. 
Registered  bonds  of  $5,000. 

Authorized  $75,000,000  Outstanding  $57,871,000 

Per  mile  .    .  28,893 

Provisions  of      Of  the  amount  authorized,  $57,871,000  are  in  the  hands  of  the  public  as  above;  $5,739,000 
issue:  are  held  by  the  company  in  the  treasury  and  sinking  fund;  $90,900  have  been  reserved  for 

additions,  etc.,  under  restrictions;  $11,282,100  have  been  reserved  to  retire  prior  liens  and 
$17,000  are  redeemed  or  drawn  for  payment. 


Security: 


Trustee : 


The  above  bonds  are  secured  by  a  direct  mortgage  on  2,003.21  miles  of  the  company's  road,  on 
lands,  terminals,  securities,  equipment  and  future  acquisitions.  They  are  secured  by  a  first 
mortgage  on  724.71  miles;  by  a  second  mortgage  on  1,122.48  miles  covered  by  the  first  mortgages 
of  the  General  6s  of  1930,  Louisville  &  Nashville  First  5s  of  1937,  Louisville,  Cincinnati  & 
Lexington  General  4i^s  of  1931,  Henderson  Bridge  6s  of  1931,  and  the  Newport  &  Cincinnati 
Bridge  General  i^s  of  1945,  and  Birmingham  Mineral  5s  of  1937.  They  are  further  secured  by 
a  third  mortgage  on  156.02  miles  covered  by  the  first  mortgage  of  the  Evansville,  Henderson  & 
Nashville  6s  of  1919  and  by  the  second  mortgage  of  the  General  6s  of  1930. 

They  are  also  secured  by  deposit  with  the  trustee  of  the  following  securities:  $5,101,500  capital 
stock  of  the  Nashville,  Chattanooga  &  St.  Louis  Railway  Company;  $2,000,000  preferred 
stock  and  $1,127,400  common  stock  of  the  South  &  North  Alabama  Railway  Company;  $963,400 
capital  stock  of  the  Owensboro  &  Nashville  Railway  Company;  $19,750  Henderson  Belt 
Railroad  Company;  $980,000  capital  stock  of  the  Southeast  &  St.  Louis  Railway  Company. 
In  addition,  the  company's  report  shows  the  following  securities  deposited  under  this  indenture : 
$3,150,000  First  4s  and  $1,969,000  capital  stock  of  the  Alabama  Mineral  Railroad  Company; 
$1,500,000  preferred  and  $985,000  common  stock  of  the  Louisville,  Cincinnati  &  Lexington 
Railway  Company;  $2,412,600  capital  stock  of  the  Birmingham  Mineral  Railroad  Company; 
$501,000  capital  stock  of  the  Henderson  Bridge  Company;  $2,939,700  capital  stock  of  the 
Mobile  &  Montgomery  Railway  Company;  $3,985,000  capital  stock  of  the  New  Orleans, 
Mobile  &  Texas  Railway  Company;  $615,000  capital  stock  of  the  Nashville,  Florence  &  Shef- 
field Railway  Company;  $285,000  capital  stock  of  the  Pensacola  Railroad  Company;  $100,000 
capital  stock  of  the  Louisville  Transfer  Company;  $589,256  capital  stock  of  the  Shelby ville 
Railroad  Company. 

Central  Trust  Company,  New  York. 


1902  on 

a  3.80  to  4.00  basis 

1903 

3.90 

4.125 

1904 

3.75 

4.10 

1905 

3.70 

3.875 

1906 

3.75 

4.10 

1907 

3.90 

4.45 

1908 

3.85 

4.30 

1909 

3.875 

4.10 

1910 

3.95 

4.20 

1911 

4.05 

4.10 

1912 

4.02 

4.20 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 

[  382  ] 


LOUISVILLE    &   NASHVILLE   RAILROAD 
Evansville,  Henderson  &  Nashville  Division  First  Mortgage  Sinking  Fund  6s 

Dated  December  G,  1879  Maturing  December  1,  1919 

Interest  jjayahle  June  1  and  December  1  at  71  Broadway,  New  York. 

Couj)on  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $2,400,000  Outstanding  $1,080,000 

Per  mile  .    .  6,900 

$1,320,000  of  this  issue  have  been  retired  by  the  sinking  fund.     They  are  redeemable,  $110,000 
annually  until  1914  and  $150,000  annually  from  1915  to  1919,  at  110. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  156.02  miles  of  the  company's  line,  in- 

cluding the  145.02  miles  from  Henderson,  Ky.,  to  Nashville,  Tenn. 

Equity:  These  bonds  are  prior  in  lien  to  the  General  6s  of  1920;  also  to  the  Unified  4s  of  1940,  a 

sufficient  number  of  which  have  been  reserved  to  jirovide  for  the  retirement  of  this  issue. 

Trustee:  Central  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  4.05  to  4.95  basis 


1903 

4.70 

4.95 

1904 

4.55 

4.90 

1905 

4.38 

4.00 

1906 

4.95 

1907 

4.50 

4.80 

1909 

4.55 

4.02 

1910 

4.00 

4.45 

1911 

4.10 

4.35 

1912 

4.125 

4.,30 

These  bonds  are  considered  a  legal  investment  for  savings  hanks  in  New  England. 


LOUISVILLE    &   NASHVILLE   RAILROAD 
General  Mortgage  Sinking  Fund  6s 

Dated  June  1,  1880  Maturing  June  1,  1930 

Interest  payable  June  1  and  December  1,  71  Broadwaj^  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $20,000,000  Outstanding  $4,689,000 

Per  mile  .    .  5,830 

Provisions  of      Although  these  bonds  were  authorized  to  the  amount  of  $20,000,000,  the  terms  of  the  Unified 
issue:  Mortgage,  dated  June  1,  1890,  limited  this  to  $11,900,000,  the  amount  then  outstanding. 

$7,888,000  have  been  retired  by  the  sinking  fund,  $20,000  are  in  the  treasury  of  the  com])any 
and  $4,689,000  are  outstanding  as  above. 
[  383  ] 


Sinking  fund:  By  the  terms  of  the  sinking  fund,  which  became  operative  June  1,  1885,  bonds  are  redeemable 
annually  at  110  to  an  amount  equal  to  ljo%  of  the  total  issued,  the  bonds  to  be  held  in  the 
sinking  fund  and  interest  thereon  added  to  the  fund. 


Security : 

Equity : 
Trustee: 


These  bonds  are  secured  by  a  direct  mortgage  on  803.54  miles  of  the  company's  line;  also 
upon  equipment,  etc.  They  are  secured  by  a  first  mortgage  on  647.52  miles,  including  the 
road  from  Louisville,  Ky.,  to  Edgeville  Junction,  Tenn.,  176.12  miles;  from  Memphis  Jimction, 
Ky.,  to  Memphis,  Tenn.,  259.13  miles,  and  from  Lebanon  Junction  to  Livingston,  Ky.,  110.17 
miles.  They  are  also  secured  by  a  second  mortgage  on  the  156.02  miles  covered  by  the  first 
mortgage  of  the  Evansville,  Henderson  &  Nashville  Division  6s  of  1919. 

The  above  issue  is  prior  in  lien  to  the  Unified  4s  of  1940,  a  sufiicient  number  of  which  have 
been  reserved  to  provide  for  the  retirement  of  these  bonds. 

Central  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  4.60  to  4.95  basis 


1903 

4.80 

5.10 

1904 

4.55 

4.95 

1905 

4.50 

4.70 

1906 

4.60 

4.95 

1907 

4.75 

5.10 

1908 

4.55 

5.05 

1909 

4.70 

4.80 

1910 

4.70 

5.00 

1911 

4.70 

5.00 

1912 

4.55 

4.95 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


LOUISVILLE   &  NASHVILLE   RAILROAD 


First  Mortgage  Fifty-year  5s 


Dated  April  30,  1887 


Maturing  May  1,  1937 


Interest  payable  May  1  and  November  1  at  71  Broadway,  New  York. 
Coupon  bonds  of  $1,000,  rcgisterable  as  to  principal. 


Authorized  $3,500,000 


Outstanding  $1,749,000 
Per  mile  .    .  9,109 


Provisions  of      Although  these  bonds  were  authorized  to  the  amount  of  $3,500,000,  the  terms  of  the  Unified 
issue:  Mortgage,  dated  June  1,  1890,  limited  this  to  $1,764,000.     Of  this  amount  $15,000  are  held 

in  the  company's  treasury  and  $1,749,000  are  in  the  hands  of  the  pubUc. 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  192.20  miles  of  the  company's  line,  including 

the  117.44  miles  from  Corbin,  Ky.,  to  Norton,  Va.,  and  also  upon  future  acquisitions. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Unified  Mortgage  4s  of  1940,  a  sufficient  number  of 

which  have  been  reserved  to  provide  for  the  retirement  of  the  issue. 
[384  ] 


Trustee:  United  States  Trust  Company,  New  York. 


The  above  bonds  sold  in  1902  on 

a  4.05  to  4.15  basis 

1903 

4.30 

4.40 

1904 

4.05 

4.20 

1905 

3.90 

4.05 

1906 

3.80 

4.15 

1907 

4.00 

4.40 

1908 

4.35 

1909 

4.00 

4.15 

1910 

4.12 

4.27 

1911 

4.20 

1912 

4.20 

4.30 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Englaufl. 


NEWPORT   &   CINCINNATI  BRIDGE   COMPANY 

General  Mortgage  4)'2S 

Dated  July  1,  1895  Maturing  July  1,  1945 

Interest  payable  January  1  and  July  1  at  71  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $1,500,000  Outstanding  $1,400,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  a  bridge,  .73  miles  in  length,  crossing  the 

Ohio  River  from  Cincinnati,  O.,  to  Newport,  Ky.;  also  by  a  mortgage  on  realty,  approaches 
and  future  acquisitions. 

Sinking  fund :  These  bonds  are  to  be  purchased  at  par  by  a  fund  obtained  by  yearly  instalments  from  net 
earnings  equal  to  1%  of  the  then  outstanding  bonds.  If  bonds  are  not  obtainable  at  par,  the 
amount  lapses  into  the  treasury  of  the  company. 

These  bonds  have  been  ASSUMED  by  the  Louisville  &  Nashville  Railroad  Company,  and 
are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Pennsylvania  Com- 
pany by  endorsement. 

Equity:  The  above  issue  is  prior  in  lien  to  the  Louisville  &  Nashville  Unified  4s  of  1940. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Newport  &  Cincinnati  Bridge  Company  was  chartered  under  the  laws  of  the  States  of  Ohio 
and  Kentucky  in  1868.  The  bridge  was  opened  for  traffic  in  1872.  It  was  rebuilt  and  put  into  oper- 
ation in  May,  1897.  It  was  operated  as  a  part  of  the  Pennsylvania  Company  until  April,  1904, 
when  it  passed  into  the  control  of  the  Louisville  &  Nashville  Railroad  Company  through  purchase 
of  the  entire  capital  stock. 

[385  ] 


These  bonds  sold  in  1904  on  a  3.90  to  4.10  basis 
1905  4.05 

1909  4.45  (bid) 

1910  4.60  (bid) 

1911  4.45  (bid) 
December,  1912  4.45 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


LOUISVILLE   &   NASHVILLE   RAILROAD 
Louisville,  Cincinnati  &  Lexington  Railway  Company  General  Mortgage  4i^s 

Dated  November  1,  1881  Matnring  November  1,  1931 

Interest  payable  May  1  and  November  1  at  71  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $7,000,000  Outstanding  $3,258,000 

Per  mile  .    .  18,406 

Provisions  of      The  authorized  issue  was  originally  $7,000,000  at  6%,  but  by  an  agreement  of  December  1, 
issue:  1896,  the  issue  was  limited  to  $3,258,000  and  the  interest  rate  was  reduced  to  4J^%. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  176.70  miles  of  the  company's  line,  includ- 

ing the  109.70  miles  from  I^ouisville  to  Newport,  Ky.,  and  the  67  miles  from  La  Grange  to 
Lexington,  Ky. 

These  bonds  have  been   ASSUMED   by  the  Louisville  &  Nashville  Railroad  Companj'. 

Equity:  These  bonds  are  prior  in  lien  to  the  Unified  4s  of  1940,  a  sufficient  number  of  which  have  been 

reserved  to  provide  for  the  retirement  of  this  issue. 

Trustee:  Mercantile  Trust  Company,  New  York. 

On  October  1,  1877,  the  Louisville,  Cincinnati  &  Lexington  Railway  Company  succeeded  the 
Louisville,  Cincinnati  &  Lexington  Railroad  Company,  which  was  sold  under  foreclosure.  The  latter 
road  was  the  result  of  a  consolidation  on  September  11,  1869,  of  the  Louisville  &  Frankfort  Railroad 
and  the  Lexington  &  Frankfort  Railroad  Companies.  In  1881  the  property  of  the  Louisville,  Cincin- 
nati &  Lexington  Railway  Company  was  purchased  by  the  Louisville  &  Nashville  Railroad  Com- 
pany, and  is  now  operated  as  an  integral  part  of  that  system. 

These  bonds  sold  in  1902  on  a  3.95  basis 


1903 

4.00 

1904 

4.15 

1905 

3.95 

1908 

4.20  to  4.25 

1909 

4.00 

1910 

4.05   4.25 

1911 

4.10   4.20 

1912 

4.125  4.20 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 

[  386  ] 


HENDERSON    BRIDGE    COMPANY 


First  Mortgage  6s 

Dated  September  1,  1881  Maturing  September  1,  1931 

Interest  payable  March  1  and  September  1  at  71  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $2,000,000  Outstanding  $1,126,000 

above,  $874,000  are  held  in  the   company's 


Provisions  of      In  addition  to  the  $1,126,000  outstanding 
issue:  treasury. 


Sinking  fund: 


Security : 


Equity: 
Trustee : 


"By  a  supplemental  indenture  dated  February  27,  1884,  it  is  provided  that  the  Company  pay 
to  the  trustees  $20,000  in  bonds  at  par,  or  $21,000  in  cash,  on  August  1,  1885,  and  yearly 
thereafter  until  1894,  and  on  August  1,  1895,  and  yearly  thereafter  $8,000  in  bonds,  or  $8,400 
in  cash.  Which  amounts  shall  be  applied,  first,  to  extraordinary  repairs,  if  any,  and  next  to 
the  redemption  of  these  bonds  at  105,  to  be  drawn  by  lot.  The  bonds  redeemed  shall  be 
held  uncancelled  and  the  interest  collected;  and,  if  it  be  necessary  to  rebuild  or  repair  some 
extraordinary  damage,  the  trustees  shall  re-issue  said  bonds." 

The  above  bonds  are  secured  by  a  first  mortgage  on  the  bridge  across  the  Ohio  River  at  Hen- 
derson, Ky.,  and  the  connecting  railway  and  approaches  to  connect  with  the  Southeast  & 
St.  Louis  Railway,  10.03  miles;  also  on  all  other  property  of  the  company. 

A  yearly  income  from  traffic  of  $200,000  for  99  years  is  guaranteed  by  the  Louisville  &  Nash- 
ville Railroad,  the  Southeast  &  St.  Louis  Railway,  the  Evansville  &  Terre  Haute  Railroad, 
the  Louisville,  Evansville  &  St.  Louis  Railway  and  the  Peoria,  Decatur  &  Evansville  Railway 
Companies. 

This  issue  is  prior  in  lien  to  the  Unified  4s  of  1940. 

Central  Trust  Company  of  New  York. 


The  Henderson  Bridge  &  Railroad  Company  was  organized  muler  the  laws  of  Kentucky,  Sep- 
tember 21,  1880,  and  the  bridge  was  opened  for  traffic  July  30,  1885.  It  was  operated  by  the  Louis- 
ville &  Nashville  Railroad  Company,  which,  with  other  connecting  roads,  guaranteed  to  the  Bridge 
Company  tolls  amounting  to  $200,000  a  year.  Control  of  the  entire  capital  stock  of  the  company 
was  procured  by  the  Louisville  &  Nashville,  $501,000  of  which  is  deposited  as  collateral  to  the  Unified 
Mortgage  4s  of  1940.  The  legal  title  to  the  property,  rights,  privileges  and  franchises  of  the  Hen- 
derson Bridge  &  Railroad  Company  was  conveyed  to  the  Louisville  &  Nashville  Railroad  Com- 
pany by  deed  dated  June  30,  1906. 

These  bonds  were  quoted  in  1906  on  a  5.375  basis  (bid) 


1909 

1910 

1911 

December,  1912 


5.25 
5.75 
5.50 
5.55 


These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


[  387  ] 


LOUISVILLE   &  NASHVILLE  RAILROAD 
New  Orleans  &  Mobile  Division  First  Mortgage  6s 

Dated  May  8,  1880  Maturing  January  1,  1930 

Interest  payable  January  1  and  July  1  at  71  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $5,000,000  Outstanding  $4,993,000 

Per  mile  .    .  35,664 

In  addition  to  the  amibunt  outstanding,  as  above,  $7,000  are  held  by  the  trustee. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  New  Orleans 

to  Mobile,  141.17  miles;  also  on  lands,  buildings,  rolling  stock,  franchises,  incomes,  and  creo- 
sote works  at  West  Pascagoula,  Miss.  They  are  also  secured  by  a  first  collateral  lien  on  7,118 
shares  of  a  total  issue  of  7,484  shares  of  capital  stock  of  the  Pontchartrain  Railroad  Company. 

Equity:  This  issue  is  prior  in  lien  to  the  New  Orleans  &  Mobile  Division  Second  6s  of  1930. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  New  Orleans  &  Mobile  Division  of  the  Louisville  &  Nashville  Railroad  was  chartered  in 
Alabama  in  November,  1866,  as  the  New  Orleans,  Mobile  &  Texas  Railroad.  On  July  1,  1874, 
interest  on  the  first  mortgage  bonds  was  defaulted  and  the  road  was  placed  in  the  hands  of  the  trus- 
tees of  that  mortgage.  The  New  Orleans,  Mobile  &  Texas  Railroad  was  sold  under  foreclosure, 
April  24,  1880,  and  reorganized  as  the  New  Orleans  &  Mobile  Railroad.  The  following  month 
the  road  was  leased  for  50  years  to  the  Louisville  &  Nashville  Railroad  Company,  which  owns 
$3,985,000  of  the  $4,000,000  capital  stock.  On  October  5,  1881,  its  property  was  convej^ed  to  the 
Louisville  &  Nashville  Railroad  Company. 

These  bonds  sold  in  1902  on  a  4.15  to  4.25  basis 


1903 

4.20 

4.625 

1904 

4.05 

4.45 

1905 

3.95 

4.15 

1906 

4.00 

4.20 

1907 

4.25 

4.50 

1908 

4.45 

4.80 

1909 

4.15 

4.20 

1910 

4.125 

4.375 

1911 

4.25 

4.50 

1912 

4.30 

4.37 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Vermont, 
Massachusetts  and  Rhode  Island. 


LOUISVILLE   &  NASHVILLE  RAILROAD 
New  Orleans  &  Mobile  Division  Second  Mortgage  6s 

Dated  October  5,  1881  Maturing  January  1,  1930 

Interest  payable  January  1  and  July  1  at  71  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $1,000,000  ,  Outstanding  $1,000,000 

Per  mile  .    .  7,142 

Security:  These  bonds  are  secured  by  a  second  mortgage  on  the  property  covered  by  the  New  Orleans 

&  Mobile  Division  First  6s  of  1930,  namely,  on  the  company's  line  from  New  Orleans  to  Mobile, 
140.36  miles;  on  lands,  buildings,  rolling  stock,  franchises,  incomes,  creosote  works  at  West 
Pascagoula,  and  on  7,118  shares  of  capital  stock  of  the  Pontchartrain  Railroad  Company. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  4.45  to  4.60  basis 

1903  4.50 

1904  4.40 
1906     4.45 

1909  4.50 

1910  4.,55 

1911  4.55 

1912  4.55 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


LOUISVILLE   &   NASHVILLE   RAILROAD 
Pensacola  Division  First  Mortgage  6s 

Dated  March  1,  1880  Maturing  March  1,  1920 

Interest  payable  March  1  and  September  1  at  71  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $600,000  Outstanding  $274,000 

Per  mile    .    .        6,100 

Provisions  of      In  addition  to  the  $274,000  outstanding,  $6,000  are  in  the  treasury  of  the  company  and  $320,000 
issue:  have  been  redeemed  or  drawn  for  payment  by  the  sinking  fund. 

Sinking  fund :     Under  the  provisions  of  this  fund  the  company  agrees  to  pay  the  trustees  $5,000  annually 
from  1885  to  1890;  $8,000  from  1891  to  1895;  $10,000  from  1896  to  1900;  $15,000  from  1901 
to  1905;  $20,000  from  1906  to  1910;  $25,000  from  1911  to  1915;  and  $36,000  from  1916  to  1920 
[  389  ] 


for  the  purchase  of  these  bonds  at  not  exceeding  105.  If  bonds  cannot  be  obtained  at  the 
price,  they  are  to  be  drawn  by  lot,  and  all  bonds  so  redeemed  are  to  be  reported  in  the  an- 
nual report  to  the  stockholders. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Pensacola  to 

Flomaton  (a  junction  with  the  Mobile  &  Montgomery  Railway),  44.64  miles;  also  on  all  lands 
used  in  connection  with  said  road,  buildings,  rolling  stock  and  franchises. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  4.65  to  4.75  basis 


1905 

4.70 

1906 

5.25 

1909 

5.15 

1910 

4.70   5.30 

1911 

5.20 

mber,  1912 

5.10  (bid) 

The  above  bonds  arc  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and 
Rhode  Island. 


LOUISVILLE    &   NASHVILLE   RAILROAD 
Mobile  &  Montgomery  Railway  First  Mortgage  43^^s 

Dated  September  2,  1895  Maturing  September  1,  1945 

Interest  payable  March  1  and  September  1  at  71  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $5,000,000  Outstanding  $4,000,000 

Per  mile  .    .  22,471 

Provisions  of      $1,000,000  of  the  amount  authorized  is  reserved  for  extensions,  improvements,  etc. 
issue: 

Security:  These  bonds  are  secured  i>y  a  first  mortgage  on  the  company's  line  from  Montgomery  to  Mobile, 

Ala.,  a  distance  of  178.49  niiles;  also  on  lands,  buildings,  rolling  stock,  franchises  and  future 
acquisitions. 

The  bonds  are  a    JOINT    OBLIGATION    of  the  Louisville  &  Nashville  Railroad  and  the 
Mobile  &  Montgomery  Railway  Companies. 

Trustee:  Central  Trust  Company,  New  York. 

The  Mobile  &  Montgomery  Railroad  Comjjany  was  formed  in  1868  as  a  consolidation  of  the  Mo- 
bile &  Great  Northern  and  the  Alabama  &  Florida  Railway  Companies.  It  was  purchased  by  the 
bondholders  and  reorganized  in  1874  as  the  Mobile  &  Montgomery  Railway  Company.     In  1881 

[  390  ] 


tlic  Louisville  &  Nashville  Railroad  Company  leased  the  property  for  20  jears,  the  surplus  income 
to  revert  to  the  lessee.  In  December,  1900,  the  road  was  deeded  to  the  Louisville  &  Nashville 
Railroad  Company,  which  owns  practically  the  entire  capital  stock. 

These  bonds  sold  in  1902  on  a  4.00  basis 


1903 

4.12  to  4.15 

1904 

4.05   4.20 

1905 

4.00   4.10 

1906 

4.00   4.10 

1908 

4.35   4.65 

1909 

4.22  (bid) 

1910 

4.20   4.37 

1911 

4.27  (bid) 

1912 

4.25   4.30 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Vermont, 
Massachusetts  and  Rhode  Island. 


NASHVILLE,   FLORENCE    &   SHEFFIELD   RAILWAY 

First  Mortgage  5s 

Dated  August  1,  1877  Maturing  August  1,  1937 

Interest  payable  February  1  and  August  1  at  71  Broadway,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $2,500,000  Outstanding  $1,996,000 

Per  mile  .    .  19,100 

Provisions  of      The  above  bonds  are  issuable  at  not  exceeding  $20,000  per  mile,  and  in  addition  to  the  amount 
issue:  now  outstanding,  $100,000  are  held  in  the  treasury  of  the  company,  and  $404,000  are  still  to 

be  issued. 

Security:  These  bonds  are  secured  by  a  first  lien  on  104.83  miles  of  the  company's  line,  including  the  road 

from  Columbia,  Tenn.,  to  Sheffield,  Ala.,  82.13  miles;  also  on  all  lands,  buildings,  rolling  stock 
and  franchises,  now  owned  or  hereafter  acquired,  excepting  the  bridge  over  the  Tennessee 
River. 

These  bonds  ha\e  been  ASSUMED   by  the  Louisville  &  Nashville  Railroad  Company. 

Trustee:  Central  Trust  Company,  New  York. 

The  Nashville,  Florence  &  Sheffield  Railway  was  incorporated  May  16,  1887,  as  a  consolidation 
of  the  NashvUle  &  Florence  Railroad  and  the  Tennessee  &  Alabama  Railroad  Companies.  On  April 
10,  1900,  the  road  was  purchased  at  foreclosure  sale  by  the  Louisville  &  Nashville  Railroad  Company, 
subject  to  the  payment  of  $"2,096,000  outstanding  First  Mortgage  5s,  which  were  secured  on  the  road. 
The  road  now  forms  a  part  of  the  Louisville  &  Nashville  Railroad  Company,  which  owns  the  entire 
capital  stock. 

[  391  ] 


These  bonds  sold  in  1902  on 

a  4.20  b 

asis 

1903 

4.20  to  4.62  basis 

1904 

4.10 

4.15 

1905 

4.125 

4.20 

1906 

4.00 

4.35 

1907 

4.20 

1908 

4.20 

4.375 

1909 

4.05 

4.25 

1910 

4.20 

4.60 

1911 

4.20 

4.45 

1912 

4.35 

4.45 

Tliese  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


LOUISVILLE   &   NASHVILLE   RAILROAD 

Paducah  &  Memphis  Division  First  Mortgage  4s 

Dated  February  1,  1896  Maturing  February  1,  1946 

Interest  payable  February  1  and  August  1  at  71  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $5,000,000  Outstanding  $4,619,000 

Per  mile  .    .  18,185 

Provisions  of      These  bonds  were  authorized  to  the  amount  of  $5,000,000,  $3,800,000  on  account  of  the  pur- 
issue:  chase  price  of  the  property  and  $1,200,000  to  be  issued  for  additional  rolling  stock,  additions 
and  improvements.     In  addition  to  the  $4,619,000  in  the  hands  of  the  public,  $217,000  are 
held  in  the  treasury  of  the  company,  and  $164,000  are  still  to  be  issued. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  254.20  miles  of  the  company's  line,  includ- 

ing the  road  from  Paducah,  Ky.,  to  Lexington,  Tenn.,  and  from  Memphis  to  Perry ville,  Tenn.; 
also  on  all  lands,  buildings,  rolling  stock  and  franchises,  now  o^^^led  or  hereafter  acquired  for 
use  in  connection  with  this  line  of  road;  also  all  incomes. 

Trustee:  Manhattan  Trust  Company,  New  York. 

The  Paducah  &  Memphis  Division  of  the  Louisville  &  Nashville  Railroad  Company  comprises 
the  mileage  in  operation  of  the  old  Paducah,  Tennessee  &  Alabama  Railroad  and  the  Tennessee 
Midland  Railway  Companies,  which  were  purchased  in  1895  by  the  Louisville  &  Nashville  Railroad 
Company.  Their  operation  was  assigned  to  the  Nashville,  Chattanooga  &  St.  Louis  Railway  Com- 
pany as  of  January  1,  1896,  for  99  years,  at  a  rental  equalling  5%  of  the  purchase  price  of  the  property 
and  an  additional  rental  of  5%  of  the  costs  of  additions,  betterments  and  equipment. 

These  bonds  were  quoted  in  1909  on  a  4.20  basis  (bid) 
They  sold  in  1910  on  a  4.25  basis 

1911  4.20  to  4.27  basis 

1912  4.22       4.37 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 

[  392  ] 


PENSACOLA   &  ATLANTIC   RAILROAD 
First  Mortgage  6s 


Dated  August  1,  1881 


Maturing  August  1,  1921 


Interest  payable  February  1  and  August  1  at  71  Broadway,  New  York. 
Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $3,000,000 


Outstanding  $1,873,000 
Per  mile  .    .  11,600 


Provisions  of      Of  the  amount  authorized,  $1,873,000  are  in  the  hands  of  the  public  as  above,  and  $1,127,000 
issue:  have  been  redeemed  or  drawn  for  payment. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Pensacola,  Fla., 

to  River  Junction  (a  junction  with  the  Jacksonville,  Pensacola  &  Mobile  Railroad),  160.47 
miles;  also  on  all  property  to  be  used  in  connection  therewith,  and  all  franchises  pertaining 
to  the  road;  on  buildings,  rolling  stock,  machinery,  material,  future  acquisitions  and  land,  but 
not  including  any  land  grants  not  used  in  the  operation  of  the  road. 

These  bonds  have  been  ASSUMED  by  the  Louisville  &  Nashville  Railroad  Company. 

Sinking  fund:  An  amount  equal  to  liV%  of  bonds  issued  is  to  be  applied  to  the  purchase  of  these  bonds  at  110. 
Bonds  so  purchased  are  to  be  kept  alive  in  the  fund  and  the  interest  to  be  added  to  the  annual 
amount.    Bonds  are  to  be  drawn  by  lot  for  the  sinking  fund. 

The  Pensacola  &  Atlantic  Railroad  Company  was  chartered  March  4,  1881,  and  was  com- 
pleted in  1883.  In  1885  the  Louisville  &  Nashville  Railroad  Company  undertook  the  operation  of 
the  road,  and  on  I\Iay  4,  1891,  bought  it  at  foreclosure  sale  for  the  protection  of  its  own  interests 
therein,  as  it  was  a  large  creditor  of  the  Pensacola  &  Atlantic. 

These  bonds  sold  in  1909  on  a  4.80  to  5.00  basis 

1910  4.75 

1911  4.70  (bid) 

1912  4.375  to  4.60 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


[  393  ] 


LOUISVILLE   &  NASHVILLE   RAILROAD 

Southeast  &  St.  Louis  Division 
First  Mortgage  6s.    Second  Mortgage  3s 

Dated  January  27,  1881  Maturing  (6s)  March  1,  1921 

(3.s)  March  1,  1980 
Interest  i)ayable  March  1  and  September  1  at  71  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  ((is)  $3,500,000  Outstanding  (6s)   $3,500,000 

(3s)  $3,000,000  Per  mile  ....  16,746 

(3s)   $2,998,000 
14,344 

Security:  The  above  bonds  are  secured,  in  order  of  their  priority,  by  a  first  mortgage  and  a  second  mort- 

gage respectively  on  208.74  miles  of  the  Southeast  &  St.  Louis  Railway,  including  the  road 
from  East  St.  Ix)uis  to  Evansville,  III.,  162  miles;  also  on  lands,  buildings,  rolling  stock,  fran- 
chises and  incomes. 

These  bonds  have  been  ASSUMED  by  the  Louisville  &  Nashville  Railroad  Company. 

The  Southeast  &  St.  Louis  Railway  Company  resulted  from  the  reorganization  of  the  St.  Ix)uis  & 
Southeustern  Railway  Company  in  1880.  The  latter  was  formed  in  1872  as  the  consolidation  of  the 
St.  Louis  &  Southeastern  Railroad,  the  Evansville,  Henderson  &  Nashville  Railroad,  and  the  Edge- 
field &  Kentucky  Railroad  Companies,  but  upon  default  of  its  interest  payments  in  November, 
1874,  it  was  placed  in  tlie  hands  of  receivers,  who  operated  it  until  the  Southeast  &  St.  Louis  Rail- 
way Company  took  it  over. 

By  an  indenture  dated  January  27,  1881,  the  Southeast  &  St.  Louis  Railway  Company  leased 
its  property  to  the  Louisville  &  Nashville  Railroad  Company  for  49  years  at  an  annual  rental  of 
35%  of  its  gross  earnings,  or  an  amount  at  least  equivalent  to  all  taxes  and  interest  on  the  com- 
pany's bonds. 

Of  the  $1,000,000  capital  stock  of  the  Southeast  &  St.  Louis  Railway  Company,  $980,000  is 
held  by  the  trustees  of  the  Unified  4s  of  1940,  and  the  balance  is  in  the  treasury  of  the  company  or 
owned  by  directors. 

The  property  of  the  company  is  now  operated  as  the  Southeast  &  St.  Louis  Division  of  the 
Louisville  &  Nashville  Systein. 

The  First  6s  sold  in  1902  on  a  3.95  to  4.05  basis 


1904 

4.20 

4.40 

1905 

4.15 

1906 

4.15 

4.40 

1907 

4.10 

4.35 

1909 

4.15 

4.20 

1910 

4.37 

4.50 

1911 

4.,375 

1912 

4.25 

4.30 

[  .'594  ] 


The  Second  3s  sold  in  1902  on  a  3.90  to  4.05  basis 


1905 

4.05 

1906 

4.25 

1907 

4.25   4.90 

1909 

4.30 

1910 

4.30  (bid) 

1911 

4.30 

1912 

4.40 

The  First  Mortgage  6s  are  considered  a  legal  investment  for  savings  banks  in  New  England. 

The  Second  Mortgage  6s  are  considered  legal  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


LOUISVILLE    &   NASHVILLE   RAILROAD 


First  Mortgage  Collateral  Trust  5s 


Dated  AjjHI  1,  U 


Maturing  November  1,  1931 


Interest  payable  May  1  and  November  1  at  71  Broadway,  New  York. 
Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $7,000,000 


Outstanding  $4,705,000 
Per  mile  .    .  17.890 


Provisions  of 
i.ssue : 


Security : 


Trustee: 


Of  the  total  amount  authorized,  but  $5,129,000  have  been  issued,  of  which  $4,705,000  are 
outstanding  in  the  hands  of  the  public  as  above,  and  $424,000  are  held  in  the  treasury  of  the 
company. 

These  bonds  are  in  effect  a  first  mortgage  on  263.03  miles  of  road,  being  secured  by  deposit 
with  the  trustee  of  $5,129,000  bonds  —  $3,929,000  (entire  i.ssue)  Birmingham  Mineral  First  5s 
of  1937  and  $1,200,000  (entire  issue)  Owensboro  &  Nashville  First  6s  of  1931. 

Farmers'  Loan  &  Trust  Company,  New  York. 

The  above  bonds  sold  in  1902  on  a  4.05  to  4.35  basis 


1903 

4.10 

4.45 

1904 

4.00 

4.40 

1905 

3.875 

4.15 

1906 

4.00 

4.15 

1907 

4.40 

4.75 

1908 

4.35 

4.85 

1909 

4.25 

4.375 

1910 

4.25 

4.50 

1911 

4.25 

4.35 

1912 

4.20 

4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Massachusetts  and  New  Hampshire. 


[  395  ] 


LOUISVILLE   &  NASHVILLE   RAILROAD 
Atlanta,  Knoxville  &  Cincinnati  Division  Mortgage  Gold  4s 

Dated  May  1,  1905  Maturing  May  1,  1955 

Interest  payable  JNIay  1  and  November  1  at  71  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000. 

Coupon  and  registered  bonds  interchangeable. 


Authorized  $50,000,000 


Outstanding  $20,245,000 
Per  mile  .    .  24,400 


Provisions  of 
issue: 


Security : 


Trustee: 


In  addition  to  the  amount  outstanding  in  the  hands  of  the  pubHc  as  above,  $4,115,000  are 
held  in  the  treasury  of  the  company;  $8,205,000  are  reserved  to  retire  underlying  liens,  and 
$17,435,000  are  reserved  for  double-tracking  and  for  additional  lines  of  road  at  a  rate  not 
exceeding  $30,000  for  each  mile  of  single  track  or  $40,000  for  each  mile  of  double  track. 

The  above  bonds  are  secured  by  a  direct  mortgage  on  829.99  miles  of  road.  They  are  secured 
by  a  first  mortgage  on  203.68  miles;  by  a  second  mortgage  on  286.53  miles,  including  69.31  miles 
covered  by  the  first  mortgage  of  the  Unified  4s  of  1940,  214  miles  covered  by  the  Kentucky 
Central  1st  4s  of  1987  and  3.2  miles  covered  by  the  General  6s  of  1930;  by  a  third  mortgage  on 
339.78  miles  of  road,  including  the  332.13  miles  covered  by  the  Atlanta,  Knoxville  &  Northern 
First  5s  of  1946.  They  are  also  secured  by  direct  mortgage  on  the  bridge  across  the  Ohio 
River  from  Newport,  Ky.,  to  Cincinnati,  O.;  terminal  property  in  Cincinnati,  all  lands, 
tracks,  branches,  buildings,  rolling  stock,  supplies,  rents,  incomes,  rights,  franchises,  etc., 
used  in  connection  with  the  above  railroads,  whether  now  owned  or  hereafter  acquired,  but 
not  including  any  railways  not  acquired  or  constructed  with  bonds  issued  hereunder  nor  any 
equipment  appertaining  to  the  same. 

United  States  Trust  Company,  New  York. 


These  bonds  sold  in  1907  on  ; 

a  4.60  basis 

1908 

4.20  to  4.75 

1909 

4.15       4.30 

1910 

4.25       4.45 

1911 

4.30       4.40 

1912 

4.35       4.45 

These  bonds  are  considered  a  legal  investment  for  sa\'ings  banks  in  New  Hampshire,  Connecticut  and 
Rhode  Island. 


[  396  ] 


KENTUCKY  CENTRAL  RAILWAY 
First  Mortgage  4s 

Dated  July  1,  1887  Maturing  July  1,  1987 

Interest  payable  January  1  and  July  1  at  71  Broadway,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $7,000,000  Outstanding  $6,704,000 

Per  mile  .    .  31.327 

Provisions  of      Although  these  bonds  were  authorized  to  the  amount  of  $7,000,000,  this  was  limited  by  the 
issue:  terms  of  the  Atlanta,  Knoxville  &  Cincinnati  Division  Mortgage  to  $6,742,000,  of  which 

$6,704,000  are  in  the  hands  of  the  public,  as  above,  and  $32,000  are  in  the  treasury  and  $6,000 
in  sinking  funds  of  the  Louisville  &  Nashville  Railroad  Company. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Kentucky  Central  Railway's  line  for 

214.02  miles,  including  the  road  from  Covington  to  Richmond  and  from  Fort  Estill  to  Sinks, 
Ky.,  146.68  miles;  also  all  the  lands,  buildings,  rolling  stock,  incomes  and  franchises  now 
owned  or  hereafter  acquired,  and  all  the  property  purchased  at  the  foreclosure  sale  of  the 
Kentucky  Central. 

These  bonds  have  been  ASSUMED  by  the  Louisville  &  Nashville  Railroad  Company. 

Equity:  The  above  issue  is  prior  in  lien  to  the  Atlanta,  Knoxville  &  Cincinnati  Division  First  4s  of  1955, 

a  sufficient  number  of  which  have  been  reserved  to  provide  for  the  retirement  of  this  issue. 

Trustee:  Metropolitan  Trust  Company,  New  York. 

The  Kentucky  Central  Railway  Company  was  organized  in  1887  as  a  reorganization  of  the 
Kentucky  Central  Railroad  Company.  The  latter  was  chartered  in  1875,  taking  possession  of  the 
property  of  the  Kentucky  Central  Association,  an  organization  of  the  bondholders  of  the  Covington 
&  Lexington  Railroad  and  the  Maysville  &  Lexington  Railroad  Companies,  which  were  sold  under 
foreclosure  in  1865. 

In  December,  1890,  the  Louisville  &  Nashville  Railroad  Company  acquired  control  of  the  Ken- 
tucky Central  Railway  by  purchase  of  the  entire  capital  stock  on  the  basis  of  $1,500,000  Unified 
4s  and  $2,000,000  South  &  North  Alabama  Railroad  Consolidated  5s  for  $6,908,806  stock.  Since 
1891  the  Kentucky  Central  Railway  has  been  operated  as  an  integral  part  of  the  Louisville  &  Nash- 
ville Railroad  System. 

These  bonds  sold  in  1902  on  a  3.95  to  4.05  basis 


1903 

4.00 

4.15 

1904 

3.95 

4.10 

1905 

3.90 

4.05 

1906 

3.95 

4.05 

1907 

4.10 

4.30 

1908 

4.10 

4.55 

1909 

4.05 

4.20 

1910 

4.10 

4.25 

1911 

4.15 

4.25 

1912 

4.20 

4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 

[  397  ] 


ATLANTA,  KNOXVILLE   &  NORTHERN   RAILWAY 
First  Mortgage  5s 

Dated  December  1,  1896  Maturing  December  1,  1946 

Interest  payable  June  1  and  December  1  at  71  Broadway,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $1,500,000 


Outstanding  $999,000 
Per  mile  .    .         3,009 


Pro\dsions  of      Although  authorized  to  the  amount  of  $1,500,000,  this  issue  has  been  limited  by  the  terms  of 
issue:  the  Atlanta,  Knoxville  &  Cincinnati  Mortgage  to  $1,000,000,  of  which  $1,000  are  in  the  treasury 

of  the  company,  and  $999,000  are  in  the  hands  of  the  public,  as  above. 


Security : 


Equity : 


Trustee: 


The  above  bonds  are  secured  by  a  first  mortgage  on  332.13  miles  of  Atlanta,  Knoxville  & 
Northern  road,  including  the  mileage  from  Junta,  Ga.,  to  Knoxville,  Tenn.,  140.94  miles;  and 
from  Etowah,  Tenn.,  to  Marietta,  Ga.,  142.82  miles,  together  with  all  branches  or  extensions 
which  the  company  may  be  authorized  to  and  may  construct;  also  all  title  and  interest  in  the 
line  of  telegraph  on  its  right  of  way;  also  the  bridge  over  the  Tennessee  River  at  Knoxville; 
and  all  lands,  buildings,  rolling  stock,  franchises  and  incomes. 

These  bonds  have  been  ASSUMED  by  the  Louisville  &  Nashville  Railroad  Company. 

This  issue  is  prior  in  lien  to  $500,000  First  Consolidated  4s  of  2002  and  to  the  Atlanta,  Knox- 
ville &  Cincinnati  Division  4s  of  1955,  a  sufficient  number  of  which  have  been  reserved  to 
provide  for  the  retirement  of  this  issue  at  maturity. 

Central  Trust  Company,  New  York. 


The  Atlanta,  Knoxville  &  Northern  Railway  Company  was  chartered  June  4,  1896,  as  successor 
to  the  Marietta  &  North  Georgia  Railway  Company.  The  latter  was  a  consolidation  in  1887  of  the 
Marietta  &  North  Georgia  Railroad  and  the  Georgia  &  Nortli  Carolina  Railroad  Companies. 

In  1905  the  legal  title  to  the  property  of  the  Atlanta,  Knoxville  &  Northern  was  conveyed  to 
the  Louisville  &  Nashville  Railroad  Company,  subject  to  the  lien  of  the  above  First  Mortgage  5s  and 
the  Consolidated  4s.    The  road  is  now  operated  as  a  part  of  the  Louisville  &  Nashville  System. 


These  bonds  sold  in  1902  on  a  4.25  basis 

1904 

4.35 

1905 

4.25  to  4.30 

1906 

4.15 

1909 

4.55       4.80 

1910 

4.35       4.45 

1911 

4.30       4.35 

1912 

4.30 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


[  398  ] 


ATLANTA,  KNOXVILLE  &  NORTHERN  RAILWAY 
First  Consolidated  4s 


Dated  March  1,  1902 


Maturing  March  1,  2002 


Interest  payable  March  1  and  September  1  at  71  Broadway,  New  York. 
Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $10,000  per  mile 


Outstanding  $500,000 
Per  mile  .    .         1,500 


Provisions  of      These  bonds  were  authorized  at  the  rate  of  $10,000,  but  this  was  limited  by  terms  of  the  Atlanta, 
issue:  Knoxville  &  Cincinnati  Division  5s  to  $1,280,000.     Of  this  amount  $780,000  have  been  redeemed 

and  $500,000  are  in  the  hands  of  the  public,  as  above. 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  mileage  covered  by  the  first  lien  of 

the  Atlanta,  Knoxville  &  Northern  First  5s  of  1946. 

They  are  ASSUMED  by  the  Louisville  &  Nashville  Railroad  Company. 

Equity:  This  issue  is  prior  in  lien  to  the  Atlanta,  Knoxville  &  Cincinnati  Division  4s  of  1955,  a  sufficient 

number  of  which  have  been  reserved  to  provide  for  the  retirement  of  this  issue. 

Trustee:  United  States  Trust  Company,  New  York. 

For  history  of  the  Atlanta,  Knoxville  &  Northern  Railway  Company,  see  page  398. 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


LOUISVILLE   &   NASHVILLE   TERMINAL   COMPANY 
First  Mortgage  4s 

Dated  December  1,  1902  Maturing  December  1,  1952 

Interest  payable  June  1  and  December  1  at  71  Broadway,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $3,000,000 


Outstanding  $2,500,000 


Provisions  of      These  bonds  are  reserved  for  additions  and  improvements  to  the  amount  of  $465,000.    $35,000 
issue:  are  held  in  the  treasury  of  the  Louisville  &  Nashville  Railroad  Company,  and  $2,500,000  are 

in  the  hands  of  the  public,  as  above. 


Security : 


Trustee: 


These  bonds  are  secured  by  a  first  mortgage  on  terminal  property  in  Nashville  and  on  build- 
ings, tracks  and  other  terminal  facilities  now  situated  thereon  or  hereafter  acquired;  and  on 
leases  and  the  income  thereof. 

The  above  bonds  are  GUARANTEED  jointly  and  severally  as  to  PRINCIPAL  and  INTER- 
EST by  the  Louisville  &  Nashville  Railroad  Company  and  the  Nashville,  Chattanooga  &  St. 
Louis  Railway  Company. 

Manhattan  Trust  Company,  New  York. 

[  399  ] 


The  Louisville  &  Nashville  Terminal  Company  was  incorporated  under  the  laws  of  the  State  of 
Tennessee  in  March,  1893.  The  property  of  the  company  is  leased  jointly  by  the  Louisville  &  Nash- 
ville Railroad  and  the  Nashville,  Chattanooga  &  St.  Louis  Railway  Companies  at  a  rental  of  4% 
per  annum  upon  the  cost,  use  of  the  property  and  number  of  cars  handled  determining  the  propor- 
tion paid  by  each  company.    Operating  expenses  are  also  divided  upon  this  basis. 

These  bonds  were  quoted  in  1909  on  a  4.15  basis  (bid) 

1910  4.30 

1911  4.30 
August,  1912  4.30 


SOUTH   &  NORTH  ALABAMA  RAILROAD 


Dated  April  10,  1886 


Consolidated  Mortgage  5s 


Maturing  August  1,  1936 


Interest  payable  February  1  and  August  1  at  71  Broadway,  New  York. 
Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $10,000,000 


Outstanding  $7,292,000 
Per  mile  .    .  36,460 


Provisions  of      In  addition  to  the  $7,292,000  in  the  hands  of  the  public,  $2,208,000  are  in  the  treasury  of  the 
issue:  Louisville  &  Nash^^lle  RaiU-oad  Company,  and  $500,000  are  deposited  as  collateral  for  the 

Georgia  Railroad  lease. 


Security ; 


Equity: 


Trustee: 


These  bonds  are  secured  by  a  first  mortgage  on  200.46  miles  of  road,  including  the  line  from 
Decatur  to  Montgomery,  Ala.,  183  miles;  also  on  any  and  all  tracks  and  road  hereafter  con- 
structed or  acquired  between  said  points. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Louisville  & 
Nashville  Railroad  Company  by  endorsement. 

The  above  bonds  are  prior  in  lien  to  the  South  &  North  Alabama  Railroail  Improvement  5s 
of  1936  which  are  held  in  the  treasury  of  the  Louisville  &  Nashville  Railroad  Company. 

Central  Trust  Company,  New  York. 


The  South  &  North  Alabama  Railroad  was  chartered  under  the  laws  of  the  State  of  Alabama 
on  February  17,  1854.  The  main  line  was  opened  for  traffic  on  October  1,  1872.  The  road  is  operated 
by  the  Louisville  &  Nashville  Railroad  Company,  which  owns  all  the  preferred  stock  and  $1,185,233 
of  the  $1,493,588  common  stock  of  the  company. 


These  bond! 

3  sold  in  1903  on  a  4.65  to  4.75  basis 

1904 

4.05 

4.30 

1905 

4.05 

4.15 

1907 

4.30 

4.45 

1908 

4.25 

1909 

4.05 

4.35 

1910 

4.10 

4.375 

1911 

4.20 

4.30 

1912 

4.25 

4.37 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 

[  400  ] 


WESTERN   RAILWAY   OF    ALABAMA 
Consolidated  First  Mortgage  4)2S 

Dated  October  1,  1888  Maturing  October  1,  1918 

Interest  payable  April  1  and  October  1  at  the  Guaranty  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $1,543,000  Outstandmg  $1,543,000 

Per  mile  .    .  11,690 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  132  miles  of  road  extending  from  Selma,  Ala., 

to  West  Point,  Ga.,  and  on  lands,  depots,  buildings,  rolling  stock  and  equipment,  whether  now 
owned  or  hereafter  purchased  by  the  company  for  use  on  its  railway,  and  on  all  franchises, 
incomes  and  profits  thereof. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Georgia  Railroad 
&  Banking  Company  and  are  GUARANTEED  as  to  INTEREST  jointly  by  the  Atlantic 
Coast  Line  Railroad  and  the  Louisville  &  Nashville  Railroad  Companies  under  the  terms  of 
its  lease. 

Trustee:  The  Metropolitan  Trust  Company,  New  York. 

The  Western  Railway  of  Alabama  was  chartered  Marcli  15,  1883,  under  the  laws  of  the  State  of 
Alabama  and  took  o\er  the  property  of  the  Western  Railroad  of  Alabama,  which  was  organized 
in  1870  as  a  consolidation  of  the  Montgomery  &  West  Point  Railroad  and  the  Western  Railway 
of  Alabama.  The  capital  stock  of  the  Western  Railway  of  Alabama  is  owiied  by  the  Central  of 
Georgia  Railway  Company  and  the  Georgia  Railroad  &  Banking  Company,  and  the  road  is  operated 
jointly  for  the  benefit  of  the  Atlantic  Coast  Line  Railroad  Company  and  the  Louisville  &  Nash- 
ville Railroad  Company. 

The  above  bonds  were  quoted  in  1909  on  a  4.05  basis  (bid) 

1910  4.95 

1911  5.20 
December,  1912           5.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


[401  ] 


LOUISVILLE  &  NASHVILLE  RAILROAD  COMPANY-SOUTHERN  RAILWAY 

Joint  Monon  First  Collateral  Trust  4s 

Dated  July  1,  1902  Maturing  July  1,  1952 

Interest  payable  on  coupon  bonds  January  1  and  July  1;  on  registered  bonds  January  1,  April  1,  July  1 

and  October  1  at  the  oflBce  of  J.  P.  Morgan  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Registered  bonds  of  $1,000,  $5,000  and  $10,000,  or  multiples  of  $10,000. 

Coupon  and  registered  bonds  interchangeable. 


Authorized  $15,500,000 


Outstanding  $11,765,000 


Provisions  of      Of  the  $15,500,000  authorized,  $11,827,000  have  been  issued,  $62,000  of  which  are  held  by  the 
issue:  Louisville  &  Nashville  Railroad  and  Southern  Railway  Companies  and  $11,765,000  are  in  the 

hands  of  the  public  as  above.  $2,000,000  are  reserved  for  improvements  and  betterments  to 
the  Chicago,  Indianapolis  &  Louisville  Railway  property  at  not  over  $500,000  per  year,  and 
$1,673,000  are  issuable  in  exchange  for  the  latter  company's  stock  outstanding  at  the  rate  of 
$90  for  each  share  of  preferred  and  $78  for  each  share  of  common. 

Redemption:  The  above  bonds  are  redeemable  at  105  and  interest  on  any  January  1  or  July  1  on  two  months' 
notice.  Not  less  than  $1,000,000  bonds  shall  be  called  for  redemption  at  any  one  time,  and 
no  registered  bonds  shall  be  called  until  all  coupon  bonds  have  been  redeemed.  If  only  a 
portion  of  the  issue  is  to  be  redeemed,  the  bonds  shall  be  drawn  by  lot. 

Security:  These  bonds  are  a  joint  obligation  of  the  Louisville  &  Nashville  Railroad  and  Southern  Rail- 

way Companies.  They  are  secured  by  a  first  collateral  mortgage  on  $9,796,900  common  stock 
and  $3,873,400  preferred  stock  of  the  Chicago,  Indianapolis  &  Louisville  Railway  Company, 
this  stock  being  owned  in  equal  amounts  by  the  two  issuing  companies.  If  either  company 
defaults  its  obligations  in  regard  to  this  issue,  the  shares  of  the  defaulting  company  shall  be- 
come the  property  of  the  non-defaulting  company  which  shall  become  liable  for  the  full  mortgage. 
As  long  as  these  bonds  are  outstanding,  the  Chicago,  Indianapolis  &  Louisville  Railway  Com- 
pany agrees  not  to  issue  any  new  bonds  except  to  refund  existing  obligations  and  to  acquire 
additional  property. 

Trustee:  Standard  Trust  Company,  New  York. 


These  bonds  sold  in  1903  on  a  4.40  to  4.85 

1904 

4.15 

4.55 

1905 

4.05 

4.20 

1906 

4.10 

4.35 

1907 

4.40 

4.70 

1908 

4.60 

5.20 

1909 

4.45 

4.65 

1910 

4.40 

4.62 

1911 

4.45 

4.65 

1912 

4.55 

4.65 

[  402  ] 


LOUISVILLE    &   NASHVILLE   RAILROAD 

St.  Louis  Property  First  Mortgage  5s 

Dated  February  29,  1896  Maturing  March  1,  1916 

Interest  payable  March  1  and  September  1  at  St.  Louis  Union  Trust  Company,  St.  Louis. 

Coupon  bonds  of  $1,000. 
Authorized  $650,000  Outstanding  $617,000 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  a  block  of  land  bounded  by  Cass  Avenue, 

Broadway,  Dickson  Street  and  Collins  Street,  and  on  lots  of  land  on  Collins  Street  and  Cass 
Avenue,  in  the  City  of  St.  Louis. 

Trustee:  St.  Louis  Union  Trust  Company,  St.  Louis. 

These  bonds  were  quoted  in  1909  on  a  4.65  basis  (bid) 
1910  4.60 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hampshire  and 
Rhode  Island. 


BOND   DESCRIPTIONS   OF   CONTROLLED   ROADS 

Following  are  descriptions  of  the  bond  issues  of  companies  operated  independently  but  con- 
trolled through  stock  ownership  by  the  Louisville  &  Nashville  Railroad  Company. 


LOUISVILLE,   HENDERSON    &   ST.   LOUIS   RAILWAY 
First  Mortgage  5s 

Dated  June  1,  1896  Maturing  July  1,  1946 

Interest  payable  January  1  and  July  1  at  the  Bank  of  America,  New  York. 

Coupon  bonds  of  $500,  registerable  as  to  principal. 

Authorized  $2,500,000  Outstanding  $2,500,000 

Per  mile  .    .  15,150 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  165.20  miles  of  road,  including  the  line  from 

West  Point  to  Henderson,  Ky.,  121.40  miles,  together  with  all  lands,  buildings,  rolling  stock 
and  franchises  now  owned  or  hereafter  acquired  in  connection  with  said  railroad,  and  all  in- 
comes thereof. 

Trustee :  Guaranty  Trust  Company,  New  York. 

[  403  ] 


The  Louisville,  Henderson  &  St.  Louis  Railway  was  incorporated  May  29,  1896,  under  the  laws 
of  Kentucky,  as  the  reorganization  of  the  Louisville,  St.  Louis  &  Texas  Railway  Company.  The  road 
is  operated  by  its  own  organization,  although  controlled  by  the  Louisville  &  Nashville  Railroad  Com- 
pany, which  owns  81.57%  of  the  common  stock  and  38.8%  of  the  preferred  stock. 


These  bonds  sold  in  1902  on  a  4.40  to  5.125 

1903 

4.72       5.05 

1904 

4.40       4.95 

1905 

4.25       4.60 

1906 

4.35       4.55 

1907 

4.55       4.875 

1908 

4.50       4.75 

1909 

4.50  (bid) 

1910 

4.60  (bid) 

1911 

4.50  (bid) 

December,  1912 

4.65  (bid) 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


NASHVILLE,  CHATTANOOGA   &   ST.   LOUIS   RAILWAY 

First  Mortgage  7s 

Dated  July  1,  1873  Maturing  July  1,  1913 

Interest  payable  January  1  and  July  1  at  the  Hanover  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  j^rincipal. 
Registered  bonds  of  $1,000. 

Authorized  $(i,800,000  OuLstandiug  $6,300,000 

Per  mile  .    .  18,530 

Provisions  of      By  the  terms  of  the  Nashville,  Chattanooga  &  St.  Louis  Railway  First  Consolitlatod  Mortgage 
issue:  the  additional  $500,000  of  the  First  Mortgage  7s  are  not  to  be  issued. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  340.22  miles  of  road  including  the  line 

from  Chattanooga,  Teun.,  to  Hickman,  Ky.,  320.21  miles;  on  branch  hues;  on  terminal  prop- 
erties at  Chattanooga  and  Hickman;  on  land  in  Nashville  and  Chattanooga,  and  on  buildings, 
roUing  stock  and  franchises. 

Equity:  These  bonds  are  prior  in  lien  to  the  First  Consolidated  5s  of  1928  and  their  retirement  is  pro- 

vided for  by  the  terms  of  that  mortgage. 

The  Nashville,  Chattanooga  &  St.  Louis  Railway  Company  was  organized  January  24,  1848, 
as  the  Nashville  &  Chattanooga  Railroad  Company.  In  1873  the  present  title  was  adopted.  In 
1880  the  Ix)uisville  &  Nashville  Railroad  Company  acquired  55%  of  the  capital  .stock  of  the  company, 
and  on  June  30,  1911,  it  owned  71.78%,  or  $7,177,600  out  of  a  total  of  $10,000,000.  The  road  is 
operated  by  its  own  management,  although  under  the  control  of  the  Louisville  &  Nashville  Railroad 
Company, 

[  404  ] 


The  above  bonds  sold  in  1902  on  a  3.75  to  4.05  basis 


1903 

3.95 

4.40 

1904 

3.70 

4.30 

1905 

3.65 

4.05 

1906 

3.80 

4.45 

1907 

3.55 

5.40 

1908 

3.50 

4.70 

1909 

3.70 

4.70 

1910 

3.375 

4.70 

1911 

3.60 

4.70 

kily,  1912 

4.125 

(bid) 

These  bonds  are  considered  a  legal  inv^estment  for  savings  banks  in  New  Hampshire,  Connecticut  and 
Rhode  Island. 


NASHVILLE,   CHATTANOOGA   &   ST.   LOUIS   RAILWAY 
Tracy  City  Branch  First  Mortgage  6s 

])at(Ml  .Jatiiiary  1,  1887  Maturing  20,000  each  January  1,  to  1916 

100,000  January  1,  1917 
Interest  payable  January  1  and  July  1  at  the  Hanover  National  Bank,  New  York. 

Coujjon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000. 

Authorized  $600,000  Outstanding    $180,000 

Per  mile  .    .  8,700 

Provisions  of      $420,000  of  this  issue  have  matured  and  been  paid.     The  bonds  are  numbered  from  1  to  600 
issue:  and  are  payable  in  numerical  order.     On  January  1,  1912,  Nos.  401  to  420  were  paid. 

Sccm-ity :  The  above  bonds  are  secured  by  a  first  mortgage  on  20.73  miles  of  road  extending  from  Cowan 

(a  point  on  the  main  line)  to  Tracy  City;  also  on  lands,  buildings,  franchises  and  income; 
also  on  rolling  stock  now  owned  or  hereafter  acquired  for  use  in  connection  with  this  line. 

Equity:  These  bonds  are  \moT  in  Uen  to  the  Nashville,  Chattanooga  &  St.  Louis  Consolidated  5s  of 

1928,  a  sufficient  number  of  which  have  been  reserved  to  pro\ide  for  the  retirement  of  this 
issue. 

Trustee:  Central  Trust  Company,  New  York. 

For  history  of  the  Nashville,  Chattanooga  &  St.  Louis  Railway  Compauy,  see  page  404. 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Connecticut  and 
Rhode  Island. 


[  405  ] 


NASHVILLE,  CHATTANOOGA   &   ST.   LOUIS   RAILWAY 

Fayette  &  McMinnville  Branches  First  Mortgage  6s 

Dated  January  1,  1877  Maturing  January  1,  1917 

Interest  payable  January  1  and  July  1  at  the  Hanover  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000. 

Authorized  $750,000  Outstanding  $750,000 

Per  mile  .    .         5,950 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  126.21  miles  of  road,  including  the  60.63 

miles  of  line  extending  from  Tullahoma  to  Sparta,  Tenn. ;  also  on  equipment,  lands,  buildings, 
rolling  stock,  franchises  and  incomes  pertaining  to  said  lines. 

Equity:  These  bonds  are  prior  in  lien  to  the  First  Consolidated  5s  of  1928  and  their  retirement  is  pro- 

vided for  by  the  terms  of  that  mortgage. 

For  history  of  the  Nashville,  Chattanooga  &  St.  Louis  Railway  Company,  see  page  404. 

These  bonds  sold  in  1909  on  a  4.70  basis  (bid) 

1910  4.55 

1911  4.60  (bid) 

1912  4.25 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Connecticut  and 
Rhode  Island. 


NASHVILLE,  CHATTANOOGA   &   ST.   LOUIS  RAILWAY 

Lebanon  Branch  First  Mortgage  6s 

Dated  October  1,  1877  Maturing  January  1,  1917 

Interest  payable  January  1  and  July  1  at  the  Hanover  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

.\uthorized  $300,000  Outstanding  $300,000 

Per  mile  .    .        10,350 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  29.21  miles  of  line  extending  from  Nash- 

ville to  Lebanon,  Tenn.,  and  on  lands,  buildings,  rolling  stock  and  franchises  in  connection 
with  this  road. 

Ecjuity:  This  issue  is  prior  in  lien  to  the  Consolidated  5s  of  1928,  a  sufficient  number  of  which  have 

been  reserved  to  i)rovide  for  the  retirement  of  these  bonds. 

For  history  of  the  Nashville,  Chattanooga  &  St.  Louis  Railway  Company,  see  page  404. 

[  406  ] 


These  bonds  were  quoted  in  1909  on  a  4.50  basis  (bid) 

1910  4.55 

1911  4.65 
December,  1912  4.85 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Connecticut  and 
Rhode  Island. 


NASHVILLE,  CHATTANOOGA   &   ST.   LOUIS   RAILWAY 

Jasper  Branch  Extension  First  Mortgage  6s 

Dated  January  1,  1883  Maturing  January  1,  1923 

Interest  payable  January  1  and  July  1  at  the  Hanover  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $16,000  per  mile  Outstanding    $371,000 

Per  mile  .    .        20,000 

Provisions  of      This  mortgage  is  closed  by  the  terms  of  the  mortgage  of  Nashville,  Chattanooga  &  St.  Louis 
issue:  First  ConsoUdated  5s. 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  18.50  miles  of  railroad  extending  from  Victoria 

to  Dunlap,  Tenn.,  and  on  lands,  buildings,  and  incomes. 

Equity:  This  issue  is  prior  in  lien  to  the  First  Consolidated  5s  of  1928,  a  sufficient  number  of  which 

are  reserved  to  provide  for  the  retirement  of  these  bonds. 

Trustee:  Central  Trust  Company,  New  York. 

For  history  of  the  Nashville,  Chattanooga  &  St.  Louis  Railway,  see  page  404. 

These  bonds  sold  in  1905  on  a  4.10  to  4.45  basis 

1906  4.35 

1907  4.55 

1909  4.55  (bid) 

1910  4.38 

1911  4.55  (bid) 
December,  1912  4.70  (bid) 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Connecticut  and 
Rhode  Island. 


[  407  ] 


NASHVILLE,  CHATTANOOGA   &   ST.   LOUIS   RAILWAY 

Centreville  Branch  First  Mortgage  6s 

Dated  January  1,  1883  Maturing  January  1,  1923 

Interest  payable  January  1  and  July  1  at  the  Hanover  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $8,000  per  mile  of  narrow  gauge  Outstanding    $376,000 

$15,000  per  mile  of  broad  gauge  Per  mile  .    .  8,175 

Provisions  of      This  mortgage  is  closed  bj'  the  terms  of  the  mortgage  of  the  First  Consolidated  5s  of  1928. 
issue : 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  46. 4()  miles  of  road  extending  from  Dick- 

son to  Etna,  Tenn.,  and  on  equipment  and  future  acquisitions. 

Equity:  These  bonds  are  prior  in  lien  to  the  First  Consolidated  5s  of  1928  which  provide  for  the  re- 

tirement thereof. 

Trustee:  Central  Trust  Company,  New  York. 

For  liistory  of  the  Nashville,  Chattanooga  &  St.  Louis  Railway  Comi)any,  see  page  104. 

These  bonds  were  quoted  in  1909  on  a  4.70  basis  (bid) 

1910  5.00 

1911  4.875 
December,  1912  4.80 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Connecticut  and 
Rhode  Island. 


NASHVILLE,  CHATTANOOGA    &   ST.   LOUIS   RAILWAY 
First  Consolidated  Mortgage  5s 

Dated  A|)rii  2,  ISHH  Maturing  .Vi)ril  1,  )!)2H 

Intcresl  payable  April  1  and  October  1  at  the  Hanover  National  M.ink,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  i)rincipal. 

Authorized  $20,0()0,0()0  Outstanding  $7,608,000 

Per  mile  .    .  9,070 

Provisions  of      $8,297,000  of  the  $20,000,000  authorized  are  re.served  to  retire  prior  liens;  $4,095,000  are 
issue:  issuable  at  not  over  $20,000  per  mile  for  any  additional  railroad  acquired  by  purchase,  con- 

.  struction,  consolidati(jn  or  otherwise;  and  $7,608,000  are  in  the  hands  of  the  public  as  above. 

The  rate  of  interest  has  been  reduced  from  5%  to  4%  on  all  issues  after  July  1,  1905. 

Security:  These  bonds  are  secured  by  direct  mortgage  on  839.03  miles  of  road  and  on  buihlings,  equij)- 

ment  and  future  acquisitions.     They  are  secured  by  a  first  mortgage  on  257.70  miles;  by  a 
[  408  ] 


second  mortgage  on  581.33  miles  covered  by  the  first  mortgages  of  the  First  7s  of  1913;  Cen- 
treville  Branch  6s  of  1923;  Fayette  &  McMinnville  Branches  6s  of  1917;  Jasper  Extension  6s 
of  1923;  Lebanon  Branch  6s  of  1917  and  the  Tracy  City  Branch  6s  due  serially  until  1917  (for 
description  of  mileage  co^•ered  by  these  first  mortgage  issues,  see  above). 

"The  lien  hereof  shall  attach  to  all  additional  mileage  which  shall  be  unincumbered  and  on 
which  these  bonds  may  be  issued  at  the  rate  of  $20,000  per  mile,  and  to  the  equii)ment  and 
])roperty  appurtenant  thereto,  until  the  entire  authorized  amount  (including  the  amount  held 
to  provide  for  prior  liens)  shall  be  issued,  then  no  further  railroad  or  property  shall  be  covered 
hereby." 

Trustee:  United  States  Trust  Company,  New  York. 

For  lii-story  of  the  Nash\ille,  Chattanooga  &  St.  Louis  Railway  Company,  see  page  401. 

These  bonds  sold  in  1902  on  a  4.00  to  4.25  basis 


1903 

4.05 

4.45 

1904 

3.95 

4.30 

1905 

3.875 

4.05 

1900 

3.95 

4.20 

1907 

3.875 

4.90 

1908 

4.10 

4.60 

1909 

4.00 

4.20 

1910 

4.15 

4.30 

1911 

4.10 

4.25 

1912 

4.15 

4.35 

The  above  bonds  are  considered  a  legal  investment  for  sa\'ings  banks  in  New  Hampshire,  Connecticut  and 
Rhode  Island. 


CHICAGO,   INDIANAPOLIS    &   LOUISVILLE   RAILWAY 
Refunding  Mortgage  6s,  5s  and  4s 

Dated  July  1,  1897  Maturing  July  1,  1947 

Interest  payable  January  1  and  July  I  at  the  office  of  J.  P.  Morgan  &  Co.,  New  York. 

Cuu])on  bonds  of  .$1,000,  rcgisterable  as  to  principal. 

Authorized  $15,000,000                                                                                                              OuLslanding  (6s)  $4,700,000 

(5s)  5,000,000 

(4s)  5,300,000 

Per  mile  .    .    .  29,500 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  508.79  miles  of  road,  including  the  line 

from  New  Albany  to  Michigan  City,  288.86  miles  and  from  Hammond  to  Indianapolis,  161.94 
miles;  also  on  equipment  and  future  acquisitions. 

Trustees:  The  Central  Trust  Company,  New  York,  and  James  ]\Iurdock,  Esq. 

The  Chicago,  Indianapolis  &  Louisville  Railway  Company  was  chartered  March  31,   1897, 
under  the  laws  of  Indiana,  as  a  reorganization  of  the  Louisville,  New  Albany  &  Chicago  Railway 

[  409  ] 


Company.    The  latter  company  was  the  result  of  a  consolidation  on  May  5,  1881,  of  a  company  of 
the  same  name  with  the  Chicago  &  Indianapolis  Air  Line  Railway  Company. 

The  Chicago,  Indianapolis  &  Louisville  Railway  Company  is  operated  by  its  own  organization, 
but  is  controlled  by  the  Southern  Railway  and  the  Louisville  &  Nashville  Railway  Companies,  which 
own  jointly  about  93%  of  its  common  stock  and  77%  of  its  preferred  stock. 

The  6s  of  1947  sold  in  1902  on  a  4.35  to  4.62  basis 


1903 

4.45 

4.70 

1904 

4.35 

4.60 

1905 

4.15 

4.25 

1906 

4.12 

4.50 

1907 

4.55 

4.90 

1908 

4.35 

5.00 

1909 

4.40 

4.50 

1910 

4.37 

4.65 

1911 

4.40 

4.50 

1912 

4.35 

4.60 

1902  on  a  4.15  to  4.35  b 

1903 

4.35 

4.55 

1904 

4.15 

4.40 

1905 

4.20 

4.375 

1906 

4.25 

4.30 

1907 

4.40 

4.60 

1908 

4.55 

4.65 

1909 

4.20 

4.35 

1910 

4.60  (bid) 

1911 

4.40 

4.60 

1912 

4.40 

4.45 

The  4s  of  1947  sold  in  1910  on  a  4.27  basis 
1911  4.27 

December,  1912  4.35  (asked) 


CHICAGO,   INDIANAPOLIS   &  LOUISVILLE   RAILROAD 
Equipment  Gold  Bonds  Series  "  A  "  43/^s 

Dated  March  15,  1911  Maturing  $21,000  on  September  15  and  March  15  to  September  15, 

1918,  inclusive,  and  $22,000  March  15  and  September  15  to  March  15, 
1921,  inclusive. 

Interest  payable  March  15  and  September  15  at  the  Equitable  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000. 
Authorized  $425,000  Outstanding  $362,000 

$63,000  were  redeemed  to  December  31,  1912. 

Security:  These  bonds  are  a  direct  obligation  of  the  company  and  are  secured  upon  3  passenger  locomo- 

tives, 7  consolidation  freight  locomotives,  100  automobile  cars,  200  flat  cars,  2  combination 
passenger  and  baggage  cars,  3  first-class  pa.ssenger  cars,  2  parlor  cars  and  1  dining  car  for  which 
[410] 


the  company  issued  the  above  bonds  and  paid  $75,000  in  cash.  The  title  to  this  equipment 
remains  with  the  trustee  until  all  the  bonds  are  paid. 

Trustee:  Equitable  Trust  Company,  New  York. 

Series  "  B  "  4^8 

Dated  October  16,  1911  Maturing  $37,000  April  15  and  $38,000  October  15  from  April  15, 

1912,  to  October  15,  1921. 

Interest  payable  April  15  and  October  15  at  Bankers'  Trust  Company,  New  York. 

Coupon  certificates  of  $1,000. 
Authorized  $750,000  Outstanding  $675,000 

Security:  These  are  a  direct  obligation  of  the  company  and  are  secured  upon  9  Mikado  freight  locomo- 

tives and  1,000  drop  bottom  steel  gondola  cars,  for  which  the  company  issued  these  certificates 
and  paid  $1,315,300  in  cash.  The  title  to  the  equipment  remains  with  the  trustee  until  all 
the  certificates  are  paid. 

Trustee:  Bankers'  Trust  Company,  New  York. 


INDIANAPOLIS  &  LOUISVILLE  RAILWAY 

First  Mortgage  4s 

Dated  January  1,  1906  Maturing  January  1,  1956 

Interest  payable  January  1  and  July  1  at  the  Standard  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $6,000,000  Outstanding  $1,650,000 

Per  mile  .    .  27,500 

Provisions  of      $4,350,000  of  the  above  amount  authorized  are  issuable  as  mileage  is  added  for  extensions, 
issue:  improvements,  betterments,  terminals,  etc.,  at  not  exceeding  $30,000  per  mile. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  59.70  miles  of  road  in  Indiana,  including 

the  54.70  miles  from  Shirley  Hill  to  Wallace  Junction,  on  the  main  line  of  the  Chicago,  Indian- 
apolis &  Louisville  Railway. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Chicago,  Indian- 
apolis &  Louisville  Railway  Company. 

Trustees:  Standard  Trust  Company,  New  York,  and  Edward  M.  F.  Miller,  Esq. 

The  Indianapolis  &  Louisville  Railway  Company  was  chartered  under  the  laws  of  the  State  of 
Indiana  on  March  20,  1899,  the  main  line  being  opened  for  traffic  on  October  1,  1907.  On  January 
1,  1906,  the  road  was  leased  for  99  years  to  the  Chicago,  Indianapolis  &  Louisville  Railway  Company, 

[411  ] 


which  agreed  to  pay  the  fixed  charges  and  to  redeem  the  bonds  at  maturity.     The  entire  capital 
stock  of  the  road  is  owned  by  the  Chicago,  Indianapolis  &  Louisville  Railway  Company. 

The  above  bonds  were  quoted  in  1909  on  a  4.40  basis  (bid) 
The  above  bonds  were  sold  in       1910  4.10  to  4.30  basis 

1911  4.85  (asked) 

1912  4.50  to  4.75 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


[412] 


MAINE  CENTRAL  RAILROAD  COMPANY 


MAINE  CENTRAL  RAILROAD  COMPANY 


HISTORY 

The  Maine  Central  Railroad  Company  was  organized  under  the  laws  of  Maine,  October  28, 
1862,  as  the  result  of  the  consolidation  of  the  Androscoggin  &  Kennebec  Railroad  Company  and  the 
Penobscot  &  Kennebec  Railroad  Company.  On  November  16,  1874,  the  Portland  &  Kennebec  Rail- 
road Company,  the  Somerset  &  Kennebec  Railroad  Company,  and  the  Leeds  &  Farmington  Rail- 
road Company  were  absorbed.  The  Maine  Shore  Line  Railroad  Company  (Mt.  Desert  Branch) 
was  consolidated  with  the  Maine  Central  Railroad,  October  22,  1888,  and  the  Knox  &  Lincoln  Rail- 
way was  absorbed,  February  20,  1901.  May  1,  1907,  the  Maine  Central  Railroad  Company  leased 
the  property  of  the  Portland  &  Rumford  Falls  Railroad  Company  for  999  years  at  an  annual  rental 
of  $328,000. 

It  was  not  until  the  summer  of  1911  that  the  Maine  Central  reached  its  present  size,  when  it 
took  over  the  Somerset  Railway,  the  Washington  County  Railway,  the  Sebasticook  &  Moosehead  Rail- 
road and  the  Androscoggin  Railroad  Companies.  In  August,  1911,  the  Maine  Central  Railroad 
Company  also  purchased  the  entire  capital  stock  ($241,600)  of  the  Sandy  River  &  Rangeley  Lakes 
Railroad,  a  narrow  gauge  railroad  covering  some  90  miles  from  a  northern  terminus  of  the  jVIaine 
Central  to  Bigelow,  Maine,  and  running  through  a  territory  rich  in  forests  and  agricultural  and  in- 
dustrial possibilities.  On  January  1,  1912,  the  company  leased  the  property  of  the  St.  Johnsbury 
&  Lake  Champlain  Railroad  operating  between  Lunenburg  and  St.  Johnsbury,  Vermont,  27  miles, 
at  an  annual  rental  of  $25,000.  During  the  fiscal  year  of  1912  nearly  all  the  capital  stock  of  the 
Bridgton  &  Saco  River  Railroad  was  acquired. 


PROPERTY 

On  June  30, 1912,  the  Maine  Central  Railroad  System,  as  a  result  of  the  above  newly  made  acqui- 
sitions, operated  1,204.08  miles  of  main  track,  of  which  640.78  miles  were  owned  in  fee  and  563.30 
miles  were  leased.  The  company's  lines  extend  from  Portland,  Maine,  to  Lime  Ridge,  Quebec, 
and  from  Portland  to  Bangor,  and  Vanceboro,  Maine.  A  line  also  runs  from  Brewer  Junction  to 
Mt.  Desert,  Eastport,  Calais  and  Princeton,  Maine.  Other  important  branches  (including  the  new 
acquisitions)  connect  Farmington  with  Rangeley,  Calais  with  Washington  Junction,  Oakland  with 
Kineo,  Pittsfield  with  Mainstream,  and  Queljec  Junction  with  St.  Johnsbury,  Vermont. 


[415  ] 


CAPITALIZATION 

At  the  close  of  the  company's  fiscal  year,  June  30,  1912,  the  capital  account  of  the  Maine 
Central  Railroad  stood  as  follows: 

Capital  stock $9,979,700 

Bonded  debt 8,661,500 

Notes 12,000,000 


Nominal  capitalization $30,641,200 

Rentals  capitalized  @  5% 18,921,440 

Gross  capitalization $49,562,640 

Securities  owned 3,400,250 

Net  capitalization $46,162,390 

Net  capital  per  mile  operated $38,726 

Average  miles  operated      1,192.10 

Net  income  to  net  capital 6.7% 

Fixed  charges  to  net  income 83.4% 

Margin  of  safety 16.6% 

From  the  above  figures,  it  will  be  seen  that  the  nominal  capitalization  of  the  Maine  Central 
Raih-oad  proper  amounted  to  $30,641,200.  This  is  at  the  rate  of  $47,802  per  mile  for  the  640.78 
miles  of  road  owned  in  fee  at  the  time  the  figures  were  compiled.  There  were,  also,  over  560  miles 
of  leased  road,  and  the  reports  show  the  capitalization  of  these  leased  lines  to  be  $20,376,700,  a 
figure  slightly  in  excess  of  that  of  rentals  capitalized  at  5%  above. 

The  net  capitalization  shown  in  the  above  table  is  rather  low  for  an  eastern  road.  Its  $38,726 
per  mile  compares  very  favorably  with  $79,119  for  the  Boston  &  Maine  Railroad,  and  $43,834  for 
the  Bangor  &  Aroostook  Railroad.  The  Maine  Central  earned  net  upon  its  net  capitalization 
6.7%  as  compared  with  6.6%  earned  by  the  Boston  &  Maine  and  4.9%  by  the  Bangor  & 
Aroostook. 

On  April  1,  1912,  obligations  of  the  company  amounting  to  $15,484,000  matured.  This  was 
equal  to  over  75%  of  the  total  funded  indebtedness  of  the  road  then  outstanding.  To  meet,  in 
part,  these  obligations,  it  was  deemed  advisable  to  issue  $12,000,000  One  Year  4%  Coupon  Notes, 
rather  than  issue  a  part  of  the  company's  $25,000,000  Fifty  Year  4%  Refunding  Mortgage  Bontl.s 
authorized  in  July,  1911.  These  notes  will  mature  March  15,  1913.  In  April,  1914,  $2,000,000 
Five  Year  4%  Coupon  Notes  will  mature.  With  these  items  refunded,  there  will  be  no  large  amount 
of  securities  maturing  until  1920. 

To  provide  funds  to  assist  in  the  reduction  of  the  company's  indebtedness,  its  directors  voted 
to  increase  the  authorized  capital  stock  from  $10,000,000  to  $15,000,000.  The  new  stock  was 
offered  to  stockholders  of  record  June  15,  1912,  on  the  basis  of  one  share  of  new  stock  for  each 
two  shares  of  stock  held  at  that  time. 


CHARACTER   OF   TRAFFIC 

The  Maine  Central  System  serves  the  central  and  northern  parts  of  Maine.  This  rapidly  de- 
veloping territory  possesses  great  agricultural  and  manufacturing  possibilities.  Fully  60%  of  the  total 
traffic  of  the  road  is  freight,  and  is  diversified  in  character,  as  can  be  seen  by  the  statistics  given 
for  the  years  1908  to  1912  inclusive: 

[  416  ] 


1911 

1910 

1909 

1908 

Tons 

Tons 

Tons 

Tons 

1,163,531 

1,016,143 

1,064,911 

905,463 

102,57(5 

98,519 

99,548 

95,984 

1,039,243 

1,019,224 

868,596 

1,038,978 

2,035,559 

2,107,572 

1,850,745 

1,935,830 

1,311,177 

1,356,257 

1,210,214 

1,291,150 

657,407 

657,685 

569,862 

607,395 

6,309,493 

6,255,400 

5,663,876 

5,874,800 

Products  of  1912 

Tons 

Agriculture      1,321,892 

Animals 122,876 

Mines 963,011 

Forests 2,234,379 

Manufactures      ....  1,336,989 

Miscellaneous     ....  814,372 

Total  tons 6,793,519 

The  passenger  business  of  the  Maine  Central  represents  about  32%  of  the  gross  business  of  the 
system.  In  every  year  but  one  since  1906,  the  passenger  revenue  and  the  number  of  passengers  car- 
ried have  steadily  increased.  In  1907,  3,717,849  passengers  paid  a  total  revenue  of  $2,708,004, 
while  in  the  fiscal  year  of  1912,  4,640,398  passengers  paid  $3,333,504.  Below  is  a  comparative 
statement  of  the  salient  passenger  statistics  of  the  system  for  the  years  1907  to  1912  inclusive: 

Year  Total  passenger      Total  passengers         Average        Average  rate 

revenue  carried  revenue  per        per  mile 

passenger 

1907 $2,708,004  3,717,849  $.728  $.0204 

1908 2,860,992  3,890,364  .735  .0207 

1909 2,774,481  3,878,688  .715  .0203 

1910 2,922,757  4,085,870  .715  .0205 

1911 2,960,662  4,115,603  .719  .0204 

1912 3,333,504  4,640,398  .718  .0206 


EARNINGS 

The  gross  earnings  of  the  road  have  shown  a  steady  increase,  from  $5,613,000  in  1900,  to 
over  $10,600,000  in  1912,  a  gain  of  nearly  90%.  The  net  earnings  also  show  a  proportionate 
gain,  especially  since  1906,  with  no  corresponding  increase  in  mUes  of  road  operated  until  1912.  In 
general,  the  earnings  of  the  road  appeared  to  be  stable  in  spite  of  the  business  depression  which 
afi'ected  most  of  the  American  systems  during  the  years  1908  and  1909.  Below  are  tabulated  the 
gross  and  net  earnings  of  the  railroad  for  the  year  1900  and  for  the  years  1907  to  1912  inclusive: 

Year  Average  mile 

operated 

1900 816 

1907 845 

1908 931 

1909 932 

1910 932 

1911 932 

1912 1,192 


MAINTENANCE 

During  the  six  years  ending  June  30,  1912,  nearly  $15,900,000  was  spent  for  maintenance. 
This  is  an  average  of  $2,650,000  annually,  or  $2,752  a  mile.  This  system,  though  not  as  much  as 
others,  felt  the  general  business  depression  which  prevailed  during  the  years  1908  and  1909,  but  every 

[417  ] 


Gross 

Per  mile 

Net 

Per  mile 

earnings 

earnmgs 

$5,612,924 

$6,878 

$1,858,952 

$2,278 

8,348,139 

9,879 

2,683,966 

3,176 

8,514,256 

9,145 

2,594,656 

2,787 

8,337,723 

8,940 

2,558,445 

2,746 

8,922,312 

9,573 

2,820,025 

3,027 

9,067,803 

9,729 

2,499,254 

2,683 

10,643,051 

8,929 

2,952,205 

2,477 

effort  was  made  to  maintain  its  high  standards  of  efficiency  through  those  somewhat  lean  years. 
With  the  return  of  better  conditions  in  1910  and  1911,  the  company  spent  more  than  ever  before, 
as  is  shown  by  the  following  table: 

Year                                                         Maintenance  Maintenance                       Total                     Per  mile 

of  way  of  equipment                  maintenance 

1907 $1,076,193  $1,244,631     $2,320,824     $2,747 

1908 1,239,497  1,250,245     2,489,742     2,674 

1909 1,231,550  1,180,584     2,412,134     2,587 

1910 1,305,384  1,282,914     2,588,298     2,776 

1911 .   1,416,937  1,335,278     2,752,215     2,952 

1912 1,880,247  1,434,052     3,314,299     2,780 


ADDITIONS   AND   BETTERMENTS 

Since  1907  over  $7,000,000  has  been  expended  for  the  purchase  of  new  equipment  and  for  other 
additions  and  betterments  to  property.  Below  is  a  statement  of  the  amount  thus  spent  annually 
since  1907  and  the  proportion  which  was  charged  to  income: 

Year  Equipment  Other  additions  Total  Amount  charged 

and  betterments  to  income 

1907 $468,895  $255,441  $724,306  $724,306 

1908 357,202  594,985  952,187  194,078 

1909 ...  345,439  345,439  113,733 

1910 143,964  1,303,102  1,447,066  353,956 

1911 2,108,664  857,720  3,026,384  185,470 

1912 49,930  582,272  632,202  114,830 

$7,127,584     $1,686,373 

DIVIDENDS 

From  1884  to  July,  1903,  inclusive,  6%  dividends  upon  outstanding  stock  were  paid  annually. 
From  October,  1903,  to  Jidy,  1907  inclusive,  7%  was  paid,  and  from  October,  1907,  to  July,  1911  in- 
clusive, 8%.  In  July,  1911,  the  du-ectors  reduced  the  dividend  rate  from  8%  to  6%  per  annum, 
this  rate  to  be  paid  upon  both  the  old  stock  and  the  new  stock  beginning  with  the  fiscal  year  of  1912. 

The  Maine  Central  Railroad  Company  has  been  controlled  for  some  time  by  the  Boston  & 
Maine  Railroad  Company  through  ownership  of  a  majority  of  its  capital  stock.  Both  have  had  the 
same  president  for  many  years. 

STATISTICS 

Following  are  given  capitalization,  earnings  and  traffic  statistics  of  the  Maine  Central  Railroad, 
based  on  the  average  miles  operated,  for  the  year  1900  and  the  years  1905  to  1912  inclusive: 


[418  ] 


MAINE    CENTRAL   RAILROAD 


Fiscal 

Capital 

Funded 

Rentals 

Gross               C 

»wned  by 

Net 

Average 

Extra 

year 

stock 

debt 

@  5Vo 

capital               company 

capital 

miles 

main 

operated 

track 

1900 

$6,112 

$13,349 

$15,847 

$35,308 

$598 

$34,710 

816 

41 

1905 

6,112 

13,253 

13,382 

32,747 

1,004 

31,743 

816 

45 

1906 

6,112 

14,573 

13,509 

34,194 

1,357 

32,837 

816 

45 

1907 

5,903 

14,073 

14,339 

34,315 

1,652 

32,663 

845 

50 

1908 

5,358 

12,773 

18,887 

37,( 

318 

1,528 

35,490 

931 

52 

1909 

5,360 

14,905 

18,886 

39, 

151 

1,516 

37,635 

932 

52 

1910 

5,360 

20,270 

21.825 

47,- 

455 

1,516 

45,939 

932 

60 

1911 

5,360 

21,880 

22,312 

49,552 

2,915 

46,637 

932 

61 

191'2 

8,372 

17,333 

15,874 

41,579 

2,853 

38,726 

1,192 

71 

Fiscal 

Gross 

Maintenance        Transportation 

Net 

Other 

Total 

Fixed 

Surplus 

year 

operating 

and  general 

operating 

income 

net 

charges 

available 

revenue 

Way         Equipment 

expense 

revenue 

income 

for 

dividends 

1900 

$6,878 

$963 

$1,989 

$1,648 

$2,278 

$105 

$2,383 

$1,690 

$693 

190.5 

8,700 

1,509 

li003 

3,463 

2,752 

290 

3,015 

1,937 

1,076 

190G 

9,552 

1,940 

1,794 

3,658 

2,160 

120 

2,280 

1,783 

497 

1907 

9,879 

1,274 

1,473 

3,956 

3,176 

115 

3,291 

1,831 

1,460 

1908 

9,145 

1,331 

1,343 

3,684 

2,787 

67 

2,854 

2,208 

646 

1909 

8,946 

1,321 

1,266 

3,613 

2,746 

94 

2,840 

2.181 

659 

1910 

9,573 

1,400 

1,376 

3,770 

3,027 

182 

3,209 

2,498 

711 

1911 

9,729 

1,520 

1,432 

4.094 

2,683 

476 

3,159 

2,695 

464 

1912 

8,929 

1,577 

1,203 

3,672 

2,477 

135 

2,612 

2,169 

443 

Fiscal 

Divi-         Oilier 

Surplus 

Operating 

Total         Conduct- 

Fixed 

Gross 

Net 

Per  cent 

,      Freight 

year 

.lends         ch; 

urges 

expenses    maintenance    ing  trans- 

charges 

earnings      income        earned  o 

n       to  all 

1 

to  gross 

to  gross        ] 

f)ortation 

to  gross 

to  gross 

to  net          eapit.ll 

traffic 

income 

earnings        earnings 

to  gross 

earnings 

capital 

capital           stock 

$366         $224 

$103 

earnings 

24.8% 

16.4% 

1900 

66.88% 

46.3% 

20.6% 

6.9%          11.3% 

,         59% 

1905 

427           606 

43 

67.24 

27.4 

39.8 

22.2 

26.6 

9.5 

17.4 

60 

1906 

427 

70 

77.40 

39.4 

38.0 

23.8 

27.9 

6.9 

8.0 

60 

1907 

412           857 

191 

67.58 

27.8 

40.0 

33.3 

28.8 

10.1 

25.2 

60 

1908 

428           -. 

.'08 

10 

69.53 

29.3 

40.2 

31.2 

24.7 

8.3 

12.0 

00 

1909 

427 

122 

110 

69.31 

29.0 

40.3 

31.7 

22.8 

7.5 

12.3 

60 

1910 

427           233 

51 

68.39 

29.1 

39.3 

33.5 

20.1 

6.9 

13.1 

61 

1911 

427 

29 

7 

72.44 

30.4 

42.0 

27.7 

19.6 

6.7 

8.<; 

61 

1912 

371 

52 

20 

72.26 

31.2 

41.1 

24.4 

21.4 

0.7 

5.3 

62 

Fiscal 

Train 

Maintenance 

Conductiiig         Train 

Kates  per  mile 

Freight 

Train 

Passenger. 

year 

mile 

per 

revenue 

transportati 

ion        mile 

density 

load 

freight  and 

earnings 

tram  mile 

per  revenue       earnings             Per 

Pe 

revenue 

company 

(gross) 
$1.66 

Way 

Equiprae 

$.482 

nt      train  mil 

e            (net) 
$.545 

passenger           ton 

tons 
187 

cars 

1900 

$.233 

$.400 

$.0223         $.0113           355,235 

4,217 

1905 

2.06 

.348 

.231 

.800 

.681 

.0202           .0107           486,194 

277 

5,934 

1906 

2.11 

.428 

.396 

.802 

.484 

.0200           .0103           549,611 

283 

6,569 

1907 

2.10 

.270 

.312 

.340 

.678 

.0204           .0102           580,308 

279 

8,000 

1908 

2.02 

.293 

.296 

.812 

.619 

.020 

7           .0106           514,956 

252 

8,042 

1909 

2.00 

.295 

.283 

.807 

.615 

.0203           .0099           539,646 

268 

7,922 

1910 

2.10 

.307 

.301 

.826 

.666 

.0205           .0098           596 

1,663 

290 

7,843 

1911 

2.09 

.329 

.308 

.880 

.573 

.0204           .0103           573,652 

276 

9,253 

1912 

2.07 

.366 

.279 

.852 

.573 

.0206           .0109           513,854 

251 

10,045 

[419  ] 

BOND    DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Maine  Central 

Eailroad    System,    together    with    the    bases   on   which   they 

have  sold  during  the  decade  ending  June  30,  1912: 


MAINE    SHORE   LINE   RAILROAD 
First  Mortgage  Currency  6s 

Dated  June  1,  1883  Maturing  June  1,  1923 

Interest  payable  June  1  and  DecenilxT  1  at  National  Park  Bank,  New  York,  Second  National  Bank, 
Boston,  First  National  Bank,  Portland,  or  at  ofSce  of  the  Company,  Portland. 

Coupon  bonds  of  $1,000. 

Authorized  $750,000  Outstanding  $81,000 

Per  mile  .    .       1,970 

Provisions  of      $669,000  of  the  above  bonds  have  been  deposited  with  the  trustee  of  the  Collateral  Trust  5s 
issue:  of  1923. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Maine  Shore  Line  Railroad  Company's 

line  from  Brewer  Junction  to  Mt.  Desert  Ferry,  Me.,  41.13  miles,  and  future  acquisitions. 

These  bonds  were  ASSUMED  by  the  Maine  Central  Railroad  Company. 

Equity:  These  bonds  are  prior  in  lien  to  the  new  Maine  Central  Consolidated  Refunding  Mortgage 

Bonds  of  1961,  a  sufficient  number  of  which  are  reserved  to  retire  this  issue. 

The  Maine  Shore  Line  Railroad  was  chartered  March  4,  1881.  The  line  above  mentioned  was 
completed  and  opened  for  traffic  June  23, 1884.  In  1888  the  company  was  consolidated  into,  and  all 
property  was  deeded  over  to,  the  Maine  Central  Railroad  Company,  under  the  terms  of  a  perpetual 
lease. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England,  except  Rhode  Island. 


PENOBSCOT    SHORE   LINE   RAILROAD 
First  Mortgage  Currency  4s 

Dated  August  1,  1890  Maturing  August  1,  1920 

Interest  payable  February  1  and  August  1  at  National  Park  Bank,  New  York,  Second  National  Bank, 

Boston,  First  National  Bank,  Portland,  or  at  office  of  the  Company,  Portlanil. 

Coupon  bonds  of  $1,000,  fully  registerable  in  lots  of  $1,000,  $5,000  and  $10,000. 

Authorized  $1,300,000  Outstanding  $1,300,000 

Per  mile  .    .  27,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Penobscot  Shore  Line  Railroad  Com- 

pany's lines,  totalling  48.57  miles  as  follows:  from  Woolwich  to  Rockland,  Me.,  47.13  miles, 
and  a  branch  in  Rockland,  1.44  miles.  The  bonds  are  further  secured  by  a  first  mortgage  on 
all  the  equipment  of  the  line  and  also  on  the  property  of  the  ferry  line  between  Woolwich  and 
Bath. 

These  bonds  were  ASSUMED  by  the  Maine  Central  Railroad  Company  in  1901. 

[  422  J 


Equity:  These  bonds  are  prior  in  lien  to  the  $400,000  Knox  &  Lincoln  5s  of  1921  and  to  the  new 

Maine  Central  ConsoHdated  Refunding  Mortgage  Bonds  of  19G1,  a  sufficient  number  of  which 
are  reserved  to  retire  this  issue. 

The  Penobscot  Shore  Line  Railroad  Company,  which  prior  to  1890  was  known  as  the  Knox  & 
Lincoln  Railroad  Company,  was  chartered  under  the  latter  name  in  1868  under  the  laws  of  the  State 
of  Maine.  The  road  was  commercially  opened  in  November,  1871.  On  August  1,  1890,  the  road  be- 
gan operations  under  the  management  of  the  Penobscot  Shore  Line  Railroad  Company,  and  in  1891 
its  name  was  changed  to  the  Knox  &  Lincoln  Railway  Company  which  in  1901  was  merged  into  the 
Maine  Central  Railroad  Company's  System. 

These  bonds  were  quoted  in  1910  on  a  4.75  ba.sis  (bid) 
1911  4.85 

July.  1912  4.90 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


WASHINGTON   COUNTY   RAILWAY 

First  Mortgage  Gold  3}  2S 

Dated  January  1,  1904  Maturing  January  1,  1954 

Interest  payable  January  1  and  July  1  at  National  Park  Bank,  New  York,  Second  National  Bank, 

Boston,  First  National  Bank,  Portland. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $20,000  per  mile 


(Outstanding  $2,500,000 
Per  mile  .    .  18,110 


Security :  The  abo\-e  bonds  are  secured  l)y  a  first  mortgage  on  the  Washington  Comity  Railway  Company's 

lines,  totalling  138.03  miles,  as  follows:  from  Calais  to  Washington  Junction,  Me.,  102.49 
miles;  from  Ayer  Junction  to  Eastport,  Me.,  16.48  mUes;  from  St.  Croix  Junction  to  Prince- 
ton, Me.,  17.85  miles;  and  from  Woodland  Junction  to  W'oodland,  Me.,  1.21  miles.  The 
bonds  are  further  secured  by  a  first  mortgage  on  all  the  equipment  of  the  line  and  future 
acquisitions. 

Tlie.se  bonds  were  ASSUINIED  by  the  Maine  Central  Railroad  Company  at  time  of  consolida- 
tion, and  also  bear  the  endorsed  GUARANTEE  of  PRINCIPAL  and  INTEREST  by 
that  company. 

Redemi)tion:      These  bonds  are  redeemable  as  a  whole  at  par  and  interest  on  January  1,  1924,  by  the  company 
or  any  guarantor,  upon  60  days'  notice. 


Equity : 


These  bonds  are  prior  in  lien  to  the  IVIaine  Central  Consolidated  Refunding  Mortgage  Bonds 
of  1961,  a  sufficient  number  of  which  have  been  reserved  to  retire  this  issue. 


Trustee: 


Central  Trust  Company,  New  York. 


The  Washington  County  Railroad  was  chartered  March  7,  1893,  under  the  laws  of  the  State  of 
Maine.  Its  road  was  commercially  opened  throughout  on  January  1,  1899.  In  December,  1903, 
the  Washington  County  Railway  Company  was  chartered  as  successor  to  the  Washington  County 
Railroad  Company,  and  in  1911  the  former  was  merged  into  the  Maine  Central  System. 

[  423  ] 


These  bonds  were  quoted  in  1909  on  a  4.15  basis  (bid) 

1910  4.55 

1911  4.55 
December,  1912           4.60 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


MAINE  CENTRAL  RAILROAD 


Collateral  Trust  Sinking  Fund  Currency  5s 

Dated  June  1,  1883  Maturing  June  1,  1923 

Interest  payable  June  1  and  December  1  at  the  American  Trust  Company,  Boston. 


Coupon  bonds  of  $1,000. 


Authorized  $700,000 


Outstanding    $669,000 
Per  mile  .    .        16,300 


Security :  The  above  bonds  are  secured  by  a  first  lien  through  deposit  with  the  trustee  of  an  equal  amount 

of  Maine  Shore  Line  Railroad  Company  First  Mortgage  Currency  6s  of  1923,  which  cover 
that  company's  hne  from  Brewer  Junction  to  Mt.  Desert  Ferry,  Me.,  41.13  miles.  The 
bonds  thus  deposited  with  the  trustee  are  followed  by  and  provided  for  in  the  new  Maine 
Central  Consolidated  Refunding  Mortgage. 

Sinking  fund:  The  1%  excess  interest  received  on  the  above-mentioned  deposited  bonds,  less  trustee's  fees, 
is  used  as  a  sinking  fund  for  the  purchase  of  these  bonds  at  not  exceeding  105  and  interest,  or, 
if  not  so  purchasable,  the  fund  may  be  invested  in  other  securities  with  the  assent  of  the  com- 
pany. July  1,  1912,  the  fund  amounted  to  $326,396.75,  invested  in  bonds  of  the  Boston  & 
Maine  System. 


Trustee: 


American  Trust  Company,  Boston. 

These  bonds  sold  in  1903  on  a  3.20  to  4.30  basis 


1904 

3.85 

1909 

4.35  (bid) 

1910 

4.40  (bid) 

1911 

4.30  (bid) 

r,  1912 

4.62  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Vermont, 
Massachusetts  and  Connecticut. 


[  424  ] 


UPPER   COOS   RAILROAD 

First  Mortgage  Currency  4s 

Dated  ]\Jay  1,  18!)()  Maturing  May  1,  1030 

Interest  payable  May  1  and  No\enibcr  1  at  New  York,  Boston  and  Portland. 

Coupon  bonds  of  $500  and  $1,000. 

Authorized  $350,000  Outstanding    $350,000 

Per  mile  .    .        15,340 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Upper  Coos  Railroad  Company's 

lines  from  North  Stratford,  N.  H.,  to  the  Canadian  Boundary  Line  at  Beecher  Falls,  22.83 
miles.  The  bonds  are  further  secured  by  a  first  mortgage  on  the  leasehold  of  the  Upper  Coos 
Railroad  of  Vermont,  of  which  the  mortgagor  holds  the  stock. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  under  terms  of  the 
lease  by  the  endorsement  of  the  Maine  Central  Railroad  Company. 

The  Upper  Coos  Railroad  Company  was  chartered  in  October,  1884.  The  road  was  commercially 
opened  throughout  in  May,  1891.  It  was  leased  to  the  Maine  Central  Railroad  Company  for  999 
years  from  May  1,  1890,  at  a  yearly  rental  equivalent  to  taxes,  the  interest  on  all  outstanding  bonds, 
(i%  on  the  capital  stock,  and  $.500  for  organization  expenses.  The  railroad  is  at  present  a  division 
of  the  Maine  Central  Railroad  Company's  system. 

These  bonds  were  quoted  in  1909  on  a  4.07  basis  (bid) 

1910  4.30 

1911  4.30 
December,  1912          4.55 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England,  except  Vermont. 


UPPER   COOS   RAILROAD 
Extension  Mortgage  Currency  4J.2S 

Dated  May  1,  1890  Maturing  May  1,  1930 

Interest  payable  May  I  and  November  1  at  New  York,  Boston  and  Portland. 

Coupon  bonds  of  $1,000. 

Authorized  $21,000  per  mile  Outstanding    $693,000 

Per  mile  .    .        21,320 

Security :  The  above  bonds  arc  secured  by  a  first  mortgage  on  the  Upper  Coos  Railroad  Company's  line 

from  Stratford  to  Quebec  Junction,  N.  H.,  32.5  miles,  also  all  leasehold  interest  in  the  Coos 
Valley  Railroad  Company. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  under  terms  of  the 
lease  of  the  Upper  Coos  Railroad  Company  to  the  Maine  Central  Railroad  Comjiany  by  the 
endorsement  of  the  latter. 

[425  ] 


The  entire  capital  stock  of  tlie  Coos  Valley  Railroad  Company  of  Vermont  is  owned  by  the 
Upper  Coos  Railroad  Company  of  New  Hampshire,  to  whom  the  line  is  leased  for  999  years,  from 
May  1,  1890,  at  a  rental  of  $1  payable  at  the  expiration  of  the  lease.  The  latter,  in  turn,  was  leased 
to  the  Maine  Central  Railroad  Company  for  999  years  from  May  1,  1890. 

These  bonds  quoted  in  1909  on  a  4.07  basis  (bid) 

1910  4.50 

1911  4.50 
December,  1912  4.55 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England,  except  Vermont. 


EUROPEAN   &   NORTH  AMERICAN   RAILWAY 
Refunding  Mortgage  Gold  4s 

Dated  January  2,  1893  Maturing  -January  1,  1933 

Interest  payable  January  1  and  July  1  at  National  Park  Bank,  New  York,  Second  National  Bank, 
Boston,  First  National  Bank,  Portland,  or  at  Treasurer's  office. 

Coupon  bonds  of  $1,000. 

Authorized  $1,000,000  Outstanding  $1,000,000 

Per  mile  .    .  18,200 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  line  from  Bangor,  Me.,  to  Winn, 

55  miles.     This  issue  is  a  JOINT  and  SEVERAL  obligation  of  the  Maine  Central  Railroad 
Company  and  the  Eurojjean  &  North  American  Railway  Company. 

Trustee:  Boston  Safe  Dei)osit  &  Trust  Company,  Boston. 

The  European  &  North  American  Railway  Company  was  chartered  in  1850  under  the  laws  of  the 
State  of  Maine.  It  was  leased  for  999  years  from  April  1,  1882,  to  the  Maine  Central  Railroad  Com- 
pany at  an  annual  rental  of  $125,000,  and  $500  for  organization  expenses.  The  lessee  also  agreed  to 
pay  all  the  debts  and  bonds  of  the  lessor  and  interest  upon  the  same. 

Tlie.se  bonds  quoted  in  1909  on  a  4.07  basis  (bid) 

1910  4.27 

1911  4.27 
December,  1912  4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  of  New  England,  except  Vermont. 


420  ] 


PORTLAND    &   RUMFORD   FALLS   RAILWAY 
Consolidated  First  Mortgage  Gold  4s 

Dated  November  2,  1896  Maturing  November  2,  1926 

Interest  payable  May  1  and  November  1  at  Old  Colony  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  jmncipal. 

Authorized  $1,000,000  .  Outstanding  $933,000 

Per  mile   .    .      14,770 

The  sinking  fund  has  retired  $67,000  of  this  issue. 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  Portland  &  Rumford  Falls  Railway  Com- 

pany's lines,  totalling  63.16  miles  as  follows:  from  Rumford  Junction  to  Rumford  Falls, 
Me.,  53.58  miles;  and  from  Canton  to  Chisholm's  Mills,  Me.,  9.58  miles.  They  are  further 
secured  by  a  first  mortgage  on  all  the  equipment  of  the  above  lines  and  future  acquisitions. 

These  bonds  are  GUARANTEED  as  to  INTEREST  by  the  Portland  &  Rumford  Falls  Rail- 
road under  terms  of  lease. 

Sinking  fund:  Two-thirds  of  1%  per  annum  of  the  par  value  of  all  the  bonds  issued  is  to  be  set  aside  and 
applied  to  the  purchase  of  this  issue  at  not  exceeding  par  and  interest,  or  if  not  so  purchasable 
to  be  invested  in  securities  authorized  by  the  laws  of  Maine  as  investments  for  savings  banks. 

Trustee:  Old  Colony  Trust  Company,  Boston. 

The  Portland  &  Rumford  Falls  Railway  was  organized  under  the  laws  of  Maine,  November  8, 
1890.  The  road  was  conmiercially  opened  for  traffic  on  February  12,  1894.  It  was  leased  for  1,000 
years  from  April  1,  1907,  to  the  Portland  &  Rumford  Falls  Railroad  Company,  which  was  organized 
March  28,  1907,  under  the  laws  of  Maine.  Under  the  terms  of  this  lease  the  Portland  &  Rumford 
Falls  Railroad  is  to  pay  interest  and  sinking  fund  charges  on  all  outstanding  bonds,  8%  on  capital 
stock,  and  $300  for  organization  expenses  — ■  a  total  annual  charge  of  $255,000. 

The  Portland  &  Rumford  Falls  Railroad  Company,  in  turn,  leased  the  projierties  and  franchises 
of  the  Portland  &  Rumford  Falls  Railway  Company  and  the  Rumford  Falls  &  Rangeley  Lakes  Rail- 
road Company  for  a  term  of  999  years  from  May  1,  1907,  to  the  Maine  Central  Railroad  Comi)any. 
The  terms  of  the  lease  provide  for  an  annual  rental  of  $328,000. 

These  bonds  were  quoted  in  December,  1912,  on  a  4.37  basis. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  Massachusetts,  Connecticut 
and  Rhode  Island. 


427  ] 


DEXTER   &  PISCATAQUIS   RAILROAD 

First  Mortgage  Currency  4s 

Dated  July  1,  1889  Maturing  July  1,  1929 

Interest  payable  January  1  and  July  1  at  the  Boston  Safe  Deposit  &  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000,  reglsterable  as  to  i)rineipai. 

Authorized  $175,000  Outstanding    $175,000 

Per  mile  .    .        10,580 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Dexter  &  Piscataquis  Railroad  Com- 

pany's line  from  Dexter  to  Foxcroft,  Me.,  16.54  miles.     They  are  further  secured  by  a  first 
mortgage  on  all  equipment  of  the  line  and  future  acquisitions. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Maine  Cen- 
tral Railroad  Company. 

Trustee:  Boston  Safe  Deposit  &  Trust  Company,  Boston. 

The  Dexter  &  Piscataquis  Railroad  Company  was  chartered  in  1888  under  the  laws  of  the  State 
of  Maine,  and  in  December  of  that  year  was  leased  for  999  years  to  the  Maine  Central  Railroad 
Company  at  an  annual  rental  of  5%  on  the  stock,  interest  on  outstanding  bonds,  and  $250  for 
organization  expenses. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England,  except  Vermont. 


DEXTER   &  NEWPORT  RAILROAD 
First  Mortgage  Currency  4s 

Dated  Se[)tember  1,  1897  :\l:ituring  September  1,  1917 

Interest  payable  March  1  and   September  1  at  National  Park  Bank,  New  York,  Second  National  Bank, 
Boston,  First  National  Bank  or  Treasurer's  ofHce,  Portland. 

Coupon  bonds  of  $1,000. 

Authorized  $175,000  Outstanding    $175,000 

Per  mile  .    .         12,300 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Dexter  &  Newport  Railroad  Company's 

line  from  Newport  to  Dexter,  Me.,  14.23  miles.    They  are  f  urtlier  secured  by  a  first  mortgage  on 
future  acquisitions. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Maine  Cen- 
tral Railroad  Company. 

Trustee:  Portland  Trust  Company,  Portland. 

[  428  ] 


The  Dexter  &  Newport  Railroad  Company  was  chartered  in  1853  under  the  laws  of  the  State  of 
Maine.  It  was  leased  for  999  years  from  November  25,  1888,  to  the  Maine  Central  Railroad  Com- 
pany at  an  annual  rental  of  5%  on  the  stock  and  $250  for  organization  expenses.  The  lessee  also 
agreed  to  pay  and  discharge  all  outstanding  funded  debt. 

These  bonds  are  considered  a  legal  investnieut  for  savings  banks  in  New  England,  except  Vermont. 


BELFAST  &  MOOSEHEAD   LAKE   RAILROAD 

First  Mortgage  Sinking  Fund  Currency  4s 

Dated  May  15,  1888  Maturing  May  15,  1920 

Interest  payable  May  15  and  November  15  at  Belfast  Savings  Bank,  Belfast,  Me. 

Coupon  bonds  of  $500  and  $1,000. 

Authorized  $150,000  Outstanding    $61,000 

Per  mile  .    .        1,840 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Belfast  &  Moosehead  Lake  Railroad 

Company's  line  from  Belfast  to  Burnham,  Me.,  33.13  miles. 

Redemption :      The  above  bonds  are  redeemable  on  any  May  15  for  the  sinking  fund  at  par  and  interest. 

Sinking  fund:  Since  1893  the  sum  of  $9,000  has  been  set  aside  annually  for  the  payment  of  interest  and  the 
balance  remaining  is  applied  to  redeem  any  of  the  outstanding  bonds  at  not  exceeding  par  and 
interest.  In  this  way  $3,000  bonds  are  drawn  yearly  so  that  the  entire  issue  will  have  been 
retired  at  the  expiration  of  the  company's  lease. 

The  Belfast  &  Moosehead  Lake  Railroad  Company  was  chartered  in  1867  under  the  laws  of  the 
State  of  Maine.  From  April  27,  1871,  it  was  leased  for  50  years  to  the  jNIaine  Central  Railroad 
Company  at  an  annual  rental  of  $36,000. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  Massachusetts  and  Connecticut. 


[  429  ] 


PORTLAND    &   OGDENSBURG   RAILWAY 
First  Mortgage  Gold  43^s 

Dated  November  2,  1908  Maturing  November  1,  1928 

Interest  payal)le  May  1  and  November  1  at  New  York,  Boston  and  Portland. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 
Coupon  and  registered  bonds  interchangeable. 

Authorized  $3,000,000  Outstanding  $2,119,000 

Per  mile  .    .  19,180 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Portland  &  Ogdensburg  Railway 

Company's  line  from  Portland,  Me.,  to  Lunenburg.  Vt.,  110.44  miles,  and  future  acquisitions. 

These  bonds  are  ASSUMED  by  the  Maine  Central  Railroad  Company  under  terms  of  its 
lease. 

Trustee:  Boston  Safe  Deposit  &  Trust  Company,  Bo.ston. 

The  Portland  &  Ogdensburg  Railway  Company  was  chartered  in  1886  under  the  laws  of  the 
State  of  Maine.  From  August  20,  1888,  it  was  leased  for  999  years  to  the  Maine  Central  Railroad 
Company  at  an  annual  rental  of  2%  on  the  capital  stock,  the  lessee  also  agreeing  to  assume  and  pay 
the  lessor's  outstanding  debts  and  mortgages. 

These  bonds  were  quoted  in  1910  on  a  4.25  basis  (iiid) 
1911  4.35 

December,  1912  4.40 

These  bonds  are  considered  a  legal  investment  for  sa\ings  banks  in  Maine,  New  Hampshire,  Vermont, 
Massachusetts  and  Rhode  Island. 


SOMERSET   RAILWAY 
First  Mortgage  Currency  5s 

Dated  July  1,  1887  Maturing  July  1,  1917 

Interest  payable  January  1  and  July  1  at  the  National  Shawniut  Bank,  Boston. 

Coupon  bonds  of  $500  and  $1,000. 

Authorized  $225,000  Outstanding  $225,000 

Per  mile  .    .         5,350 

Security:  The  above  bonds  arc  secured  by  a  first  mortgage  on  42.08  miles  of  the  Somerset  Railway  Com- 

pany from  Oakland  to  Bingham,  Me.     They  are  also  secured  by  a  first  mortgage  on  the 
equipment  of  the  line  and  future  acquisitions. 

These  bonds  were  ASSUMED  by  the  Maine  Central  Railroad  Company. 
[  4.S0  ] 


Equity:  The  above  bonds  are  prior  in  lien  to  $172,500  Somerset  Railway  Consolidated  4s  of  1950  and 

also  to  $864,000  Somerset  Railway  First  &  Refunding  4s  of  1955.     They  are  jjrior  to  the  Maine 
Central  Consolidated  Refunding  4s  of  1961,  which  i)rovide  for  the  retirement  of  this  issue. 

The  Somerset  Railway  Company  was  cliartcred  under  the  laws  of  Maine  in  March,  1903,  as 
the  successor  to  the  Somerset  Railroad  Company.  In  1911  it  was  merged  into  the  Maine  Central 
Railroad  Company,  which  assumed  the  above  bonds. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Vermont 
and  Massachusetts. 


SOMERSET   RAILWAY 
Consolidated  Mortgage  Gold  4s 

Dated  July  <i,  1900  Maturing  July  2,  1950 

Interest  payable  January  2  and  July  2  at  the  National  Shawnmt  Bank,  Boston. 

Coupon  bonds  of  $500  and  $1,000. 

Authorized  $420,000  Outstanding  $172,500 

Per  mile  .    .         4,097 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  same  property  covered  by  the  First 

Currency  5s  of  1917. 

These  bonds  were  ASSUMED  by  the  Maine  Central  Railroad  Company. 

Equity:  The  above  bonds  are  subject  to  the  lien  of  $225,000  Somerset  Railway  First  5s  of  1917,  but  are 

prior  to  $225,000  Somerset  Railway  First  &  Refunding  4s  of  1955  and  the  new  Maine  Central 
Consolidatetl  Refunding  Mortgage  which  makes  provision  for  the  retirement  of  this  issue. 

Trustee:  Maine  Trust  &  Banking  (JomiJany,  Gardiner,  Me. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


SOMERSET   RAILWAY 

First  &  Refunding  Gold  4s 

Dated  July  1,  1905  Maturing  July  1,  1955 

Interest  payable  January  1  and  July  1  at  American  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000. 

Authorized  $1,500,000  Outstanding  $864,000 

Per  mile  .    .        9,191 

Provisions  of      Of  the  total  amount  authorized,  $864,000  are  outstanding  as  above,  $420,000  have  been  re- 
issue: served  to  retire  underlying  liens,  and  $216,000  have  been  reserved  for  other  corporate  purposes. 

[  431  ] 


Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  93.99  miles  of  road,  as  follows:  (1)  A 

first    mortgage  on  51.91    miles    from  Austin  Junction    to    Kineo  Station,  Me.;   (2)  A  third 
mortgage  on  the  42.08  miles  covered  by  the  first  lien  of  the  First  5s  of  1917. 

These  bonds  were  ASSUMED  by  the  Maine  Central  Railroad  Company. 

Equity:  The  above  bonds  are  subject  in  hen  to  the  First  5s  of  1917  and  the  Consolidated  4s  of  1950. 

They  are  prior  in  hen  to  the  new  Maine  Central  Consolidated   Refunding   Mortgage  which 
provides  for  the  retirement  of  this  issue. 

Trustee :  American  Trust  Company,  Boston. 

These  bonds  were  quoted  in  1910  on  a  4.80  basis  (bid) 
1911  4.45 

December,  1912  4.25  (asked) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Vermont  and 
Massachusetts. 


KNOX   &  LINCOLN   RAILWAY 

Second  Mortgage  Currency  Ss 
Series  "A" 

Dated  February  1,  1891  Maturing  February  1,  1921 

Interest  payable  February  1  and  August  1  at  First  National  Bank,  Portland,  Second  National  Bank, 
Boston,  National  Park  Bank,  New  York,  or  Treasurer's  oflSce,  Portland. 

Coupon  bonds  of  $1,000. 

Authorized  $400,000  Outstanding    $400,000 

Per  mile  .    .  8,163 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  railroad  and  ferry  from  Bath  to 

Rockland,  Me.,  covered  by  the  first  lien  of  the  Penobscot  Shore  Line  4s,  48.57  miles. 

The.se  bonds  were  ASSUMED  by  the  Maine  Central  Railroad  Company. 

Equity:  The  above  bonds  are  subject  to  the  Penobscot  Shore  Line  4s  of  1920.     They  are  prior  in  lien 

to  the  new  Maine  Central  Consolidated  Refunding  Mortgage  which  provides  for  the  retirement 
of  the  issue. 

Trustee :  Boston  Safe  Deposit  &  Trust  Company,  Boston. 

For  history,  see  Penobscot  Shore  Line  Railroad  First  Mortgage  Currency  4s  of  1920. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


[  432  ] 


MAINE    CENTRAL   RAILROAD 

Sinking  Fund  Improvement  Gold  43/2S 
Series  "A" 

Dated  July  1,  1886  Maturing  July  1,  1916 

Interest  payable  January  1  and  July  1  at  the  First  National  Bank,  Portland,  Second  National  Bank, 

Boston,  National  Park  Bank,  New  York. 

Authorized  $'•200,000  Outstanding  $200,000 

Coupon  bonds  of  $1,000. 

Security:  These  bonds  are  not  secured  by  mortgage,  but  are  a  direct  obligation  of  the  Maine  Central 

Railroad  Company. 

Sinking  fund:  In  addition  to  the  abo\e,  the  bonds  are  secured  by  a  sinking  fund  of  $3,000  per  annum  to  be 
applied  to  the  purchase  of  these  bonds  at  not  exceeding  105  and  interest  and  if  not  so  purchas- 
able to  be  invested  in  approved  securities  with  the  assent  of  the  company.  The  fund 
amounted  to  $131,468.13  on  July  1,  1912. 

Trustee:  New  England  Trust  Company,  Boston. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hampshire. 


MAINE    CENTRAL   RAILROAD 

Sinking  Fund  Improvement  Currency  4V2S 
Series  "B  " 

Dated  July  1,  1887  Maturing  July  1,  1917 

Interest  ])ayablo  Janumy  1  and  July  1  at  the  First  National  Bank,  Portland,  Second  National  Bank, 

Boston,  National  Park  Bank,  New  York. 

Coupon  bonds  of  $1,000. 
Authorized  $2;)0,000  Outstanding  $250,000 

Security:  These  bonds  are  not  secured  by  a  mortgage,  but  are  a  direct  obligation  of  the  Maine  Central 

Railroad  Company. 

Sinking  fund:  In  addition  to  the  above,  these  bonds  are  secured  by  a  sinking  fund  of  $3,750  per  annum  to  be 
applied  to  the  purchase  of  these  bonds  at  not  exceeding  105  and  interest,  or  if  not  so  purchas- 
able, to  be  invested  in  approved  securities  with  the  assent  of  the  company.  On  July  1,  1912, 
the  fund  amounted  to  $156,472.43 

Trustee:  Boston  Safe  Deposit  &  Trust  Company,  Boston. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hampshire. 


[  433 


MAINE   CENTRAL   RAILROAD 

Consolidated  Refunding  Mortgage  Gold  Bonds 
Interest  not  to  exceed  5% 

Dated  July  1,  1911  Maturing  July  1,  1961 

Interest  payable  January  1  and  July  1  at  New  York,  Boston  and  Portland. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000  and  multiples. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $25,000,000  Outstanding  none 

Provisions  of      The  $25,000,000    bonds  authorized    are    to    be  issued  as  follows:    (1)  $5,543,000  to  refund 
issue:  maturing  prior  liens;  (2)  $2,000,000  to  refund  Maine  Central  notes  maturing  April  1,  1914; 

(3)  $17,457,000  issuable  for  any  necessary  and  lawful  purpose,  any  new  property  acquired 
becoming  subject  to  the  lien  hereof. 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Maine  Central  Railroad  Company  and  are 

secured  by  a  direct  mortgage  upon  the  entire  railroad,  equipment,  real  estate,  etc.,  owned  by 
the  company  at  the  date  of  this  mortgage  and  upon  all  other  property  acquired  with  the  pro- 
ceeds of  these  bonds,  excluding  all  leasehold  interests  and  all  property  of  the  company  situated 
in  the  cities  of  Portland,  South  Portland  and  Westbrook,  Me. 

Trustee:  Union  Safe  Deposit  &  Trust  Company,  Portland,  Me. 

This  issue  of  bonds  was  authorized  by  the  stockholders  of  the  company  on  July  5,  1911.  The 
bonds  provide  for  all  the  underlying  liens  of  the  railroad  and  when  entirely  issued  they  should  em- 
brace the  entire  present  funded  debt  of  the  Maine  Central  Railroad  Company. 

These  bonds  are  considered  legal  investments  for  savings  banks  in  Maine,  New  Hampshire  and  Vermont. 


HEREFORD   RAILWAY 

First  Currency  4s 

Dated  May  1,  1890  Maturing  May  1,  1930 

Interest  payable  May  1  and  November  1  at  the  First  National  Bank,  Portland,  Second  National  Bank, 
Boston,  National  Park  Bank,  New  York,  and  at  the  Treasurer's  office,  Portland. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $800,000  Outstanding  $800,000 

Per  mile   .  .       15,094 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Hereford  Railway  Company's  lines 

from  Beecher  Falls  to  Line  Ridge,  Canada,  52.85  miles.     They  are  further  secured  by  a  first 
mortgage  on  any  future  acquisitions. 

The.se   bonds   have   been    GUARANTEED  as  to  PRINCIPAL   and    INTEREST  by  the 
Maine  Central  Railroad  by  endorsement. 
[  434  ] 


The  Hereford  Railway  Company  was  cliartered  June  2:5,  1S87,  under  the  hiws  of  tlie  Dominion 
of  Canada.  The  road  was  commercially  opened  for  traffic  May  1,  1890.  It  was  leased  to  the  Maine 
Central  Railroad  Company  for  999  years  from  May  1,  1890,  at  a  yearly  rental  of  $64,500,  being  the 
interest  on  outstanding  bonds,  4%  on  stock  outstanding,  and  $500  for  organization  expenses. 

These  bonds  were  quoted  in  1909  on  a  4.45  basis  (bid) 

1910  4.55 

1911  4.55 
Dectinber,  1912  4.55 

These  bonds  are  considered  a  legal  iiivesliueiit  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


PORTLAND    &  RUMFORD   FALLS   RAILWAY 

Debenture  Sinking  Fund  Gold  4s 

Dated  August  1,  1897  Maturing  August  1,  1927 

Interest  payable  February  1  and  August  1  at  the  Portland  Trust  Company,  Portland,  Me.,  and  at  Boston. 

Coupon  bonds  of  $500  and  $1,000. 
Authorized  $350,000  Outstanding  $350,000 

Security:  The  above  bonds  are  not  secured  by  a  mortgage,  but  are  direct  obligations  of  the  Portland  & 

Runiford  Falls  Railway  Company,  being  GUARANTEED  as  to  INTEREST  by  the  Portland 
&  Rumford  Falls  Railroad  Company,  under  the  terms  of  lease. 

Sinking  fund:  On  or  before  July  1  of  each  year  until  and  including  19'-27,  the  company  will  pay  to  the 
trustee  $5,000  as  a  sinking  fund  for  the  payment  of  the  principal  of  these  bonds.  This  fund 
shall  be  invested  in  securities  that  are  considered  a  legal  investment  for  savings  banks  in  Maine. 

Trustee:  Portland  Trust  Company,  Portland. 

The  Portland  &  Rumford  Falls  Railway  Company  was  organized  November  8,  1890,  under  the 
laws  of  the  Stale  of  Maine,  and  its  road  was  commercially  opcnctl  for  traffic,  February  T2,  1894. 
It  was  leased  for  a  thousand  years  from  Ai>ril  1,  1907,  to  the  Portland  &  Rumford  Falls  Railroad 
Company,  at  an  annual  rental  e(|ual  to  the  interest  and  sinking  fund  charges  on  the  bonds  outstand- 
ing, dividends  of  8%  on  outstanding  capital  stock,  and  $■'^00  for  organization  expenses.  The  Portland 
&  Rumford  Falls  Railroad,  in  turn,  leased  to  the  ^M.iinc  Central  Railroad  Company  for  a  term  of 
999  years  from  May  1,  1907,  at  an  annual  rental  of  ^-'''^f^.OOO,  liic  i)roperties  and  franchises  of  the 
Portland  &  Rumford  Falls  Railway  and  the  Rumford  Falls  &;  Raugcley  Lakes  Railroad  Companies. 

These  bonds  were  quoted  in  1910  on  a  4.40  basis  (bid) 
1911  4.45 

December,  1912  4.45 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hampshire. 


[  435  ] 


PORTLAND    &  RUMFORD   FALLS   RAILWAY 
Collateral  Trust  Gold  4s 

Dated  February  1,  1904  Maturing  February  1,  1934 

Interest  payable  February  1  and  August  1  at  tlie  Portland  Trust  Company,  Portland. 

Coupon  bonds  of  $500  and  $1,000. 
Authorized  $500,000  Outstanding  $500,000 

Security :  The  above  bonds  are  a  direct  obligation  of  the  Portland  &  Runiford  Falls  Railway  Company. 

They  are  secured  by  a  deposit  with  the  trustee  of  $150,000  6%  Mortgage  Bonds  of  the  Inter- 
national Paper  Company,  and  $450,000  5%  Mortgage  Bonds  of  the  Oxford  Paper  Company. 

These  bonds   are  GUARANTEED   as  to   INTEREST  by  the  Portland  &  Rumford  Falls 
Railroad  Company  under  terms  of  lease. 

Redemption:      These  bonds  are  redeemable  at  par  and  interest  February  1,  1924,  and  annually  thereafter. 
Prior  to  that  date,  they  are  redeemable  for  the  sinking  fund  at  105  and  interest. 

Sinking  fund:     The  company  agrees  to  set  aside  each  year  $10,000  to  redeem  these  bonds  at  not  exceeding  105 
and  interest. 

These  bonds  were  quoted  in  1909  on  a  4.20  basis  (bid) 

1910  4.2,5 

1911  4.25 

Trustee:  Portland  Trust  Company,  Portland. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hampshire. 


RUMFORD   FALLS   &   RANGELEY  LAKES   RAILROAD 

First  Sinking  Fund  Gold  5s 

Dated  October  1,  1897  Maturing  October  1,  1937 

Interest  i)ayable  April  1  and  October  1  at  Old  Colony  Trust  Company,  Boston. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal. 

Authorized  $400,000  Outstanding  $400,000 

Per  mile  .    .       12,775 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Rumford  Falls  &  Rangeley  Lakes 

Railroad  Company's  line  from  Rumford  Falls  to  Bemis,  Me.,  27  miles,  and  Houghton  Branch, 
4.31  miles,  totalling  31 .31  miles.  They  are  further  secured  by  a  first  mortgage  on  all  the  equip- 
ment of  the  line  and  future  acquisitions. 

Sinking  fund:     In  addition  to  the  above  security  there  is  a  sinking  fund  of  $3,000  per  annum  to  purchase  these 
bonds  at  a  price  fixed  by  the  trustee,  subject  to  the  approval  of  the  directors  of  the  com- 
[  436  ] 


pany,  or  if  not  so  purchasable,  to  be  invested  in  securities  which  are  legal  investments  for 
Massachusetts  savings  banks. 

Trustee:  Old  Colony  Trust  Company,  Boston. 

The  Riimford  Falls  &  Rangeley  Lakes  Railroad  Company  was  organized  September  11,  1894, 
under  the  laws  of  the  State  of  Maine.  Its  road  was  opened  throughout  September  1,  1902,  and 
was  leased  for  1,000  years  from  April  1,  1907,  to  the  Portland  &  Rumford  Falls  Railroad  Company  at 
an  annual  rental  of  interest  and  sinking  fund  charges  on  bonds  outstandmg,  2%  per  annum  divi- 
dends on  capital  stock  outstanding,  and  $200  per  year  for  maintaining  the  lessor  company.  The 
Portland  &  Rumford  Falls  Railroad  Company,  in  turn,  leased  the  property  and  franchises  of  the 
Rumford  Falls  &  Rangeley  Lakes  Railroad  Company  and  the  Portland  &  Rumford  Falls  Railway 
Company  to  the  Maine  Central  Railroad  Company  for  999  years  from  May  1,  1907,  at  an  annual 
rental  of  $328,000. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


BRIDGTON    &    SACO   RIVER   RAILROAD 

First  Mortgage  4s 

Dated  June  1,  1898  Maturing  June  1,  1928 

Interest  payable  June  1  and  December  1  at  the  Trustee's  office. 

Coupon  bonds  of  $500  and  $1,000. 
Authorized  $1.S5,000  Outstanding  $135,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  entire  property  owned,  including  the 

company's  line  from  Harrison  to  Bridgton  Junction,  Me.,  21.25  miles. 

Trustee:  Union  Safe  Def)osit  &  Trust  Company,  Portland. 

The  Bridgton  &  Saco  River  Railroad  was  chartered  in  perpetuity,  July  19,  1881,  under  the  laws 
of  Maine.  Its  road  was  opened  for  traffic  from  Bridgton  Junction  to  Bridgton  in  January,  1883, 
and  the  Harrison  Extension  was  completed  in  August,  1898.  On  July  12,  1912,  at  a  private  sale, 
the  Maine  Central  Railroad  Company  purchased  almost  the  entire  capital  stock  of  the  company,  and 
from  that  time  has  operated  it  as  an  integral  part  of  its  own  system. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Massachusetts. 


[  437  ] 


BRIDGTON    &   SACO   RIVER   RAILROAD 

Second  Mortgage  4s 

Dated  June  1,  1901  Maturing  June  1,  1928 

Interest  payable  June  1  and  December  1  at  the  Trustee's  office. 

Coupon  bonds  of  $500  and  $1,000. 
Authorized  $35,000  Outstanding  $35,000 

Security:  The  aljove  bonds  are  secured  by  a  second  mortgage  on  the  property  covered  by  the  First 

Mortgage  4s  of  1928. 

Trustee:  Union  Safe  Deposit  &  Trust  Company,  Portland. 


MAINE   CENTRAL   RAILROAD 

Debenture  4%  Notes 

Dated  April  1,  1909  Maturing  April  1,"  1914 

Interest  payable  January  1,  April  1,  July  1,  and  October  1  at  Boston,  New  York  and  Portland. 

Coupon  notes  of  $1,000. 
Authorized  $2,000,000  Outstanding  $2,000,000 

Security:  The  above  notes  are  a  direct  obligation  of  the  Maine  Central  Railroad  Company,  but  are  not 

secured  by  a  mortgage. 

The  proceeds  of  the  above  issue  were  used  to  refund  $1,000,000  maturing  notes  and  to  provide 
for  new  equipment  and  betterments  to  property. 

These  notes  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


MAINE   CENTRAL   RAILROAD 
Debenture  4%  Notes 

Dated  March  15,  1912  Maturing  March  15,  1913 

Interest  payable  March  15  and  September  15  at  Boston,  New  York  and  Portland. 

Coupon  notes  of  $1,000  and  multiples. 
Authorized  $12,000,000  Outstanding  $12,000,000 

Security:  The  above  notes  are  a  direct  obligation  of  the  Maine  Central  Railroad  Company,  but  are  not 

secured  by  a  mortgage. 

The  proceeds  of  this  issue  were  used  to  refund  maturing  obligations  of  1912. 

These  notes  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 

[  4:58  ] 


PORTLAND    TERMINAL    COMPANY 

First  Mortgage  Gold  4s 

Dated  July  1,  1911  Maturiug  July  1,  1961 

Interest  payable  January  1  and  July  1,  at  New  York,  Boston  or  Portland. 

CouiJou  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000. 

Coupon  and  registered  bonds  are  interchangeable. 

Authorized  $10,000,000  Outstanding  $4,500,000 

Security:  The    above  bonils  are  a  direct   obligation  of   the    Portland   Terminal   Company,   and  arc 

secured  by  a  first  mortgage  on  its  entire  property,  including  freight  and  passenger  terminal 
properties  in  Portland,  South  Portland,  and  Westbrook,  Me.  The  value  of  this  property 
has  been  placed  at  $5,700,000. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Maine 
Central  Railroad  Company  by  endorsement. 

Trustee:  Fidelity  Trust  Company,  Portland. 

The  Portland  Terminal  Company  was  incoqjorated  under  tlie  laws  of  Maine  on  Felnuary  15, 
1887,  as  the  Portland  Union  Railway  Station  Company.  On  March  23,  1911,  its  name  was 
changed  to  the  present  one,  with  enlarged  powers.  The  capital  stock  of  the  company  is  owneil 
jointly  bj'  the  Boston  &  Maine  Railroad  and  IVIaine  Central  Railroad  Companies,  who  pay  as 
rental  a  sum  sufficient  to  provide  for  interest  and  sinking  fund  charges  on  the  company's 
obligations. 


[431)  ] 


MICHIGAN  CENTRAL  RAILROAD  COMPANY 


MICHIGAN  CENTRAL  RAILROAD  COMPANY 


HISTORY 

The  original  line  of  the  Michigan  Central  Railroad  Company  consisted  of  a  road  between  Detroit 
and  Kalamazoo,  Michigan,  144  miles,  which  had  been  built  by  the  State  of  Michigan.  The  Michi- 
gan Central  Railroad  Company  was  incorporated  in  1846  to  acquire  this  line,  the  purchase  price  being 
$2,000,000.  Various  extensions  were  built  and  opened  as  completed,  one  in  1848  extending  the  line 
to  Niles,  Michigan,  47  miles;  another  in  1850  to  Michigan  City,  Indiana,  87  miles.  In  May,  1852, 
the  line  was  opened  throughout  from  Detroit  to  Kensington,  Illinois. 

December  80,  1901,  the  Michigan  Central  Railroad  Company  was  reincorporated  under  the 
General  Railroad  Law  of  the  State  of  Michigan,  and  surrendered  its  original  charter,  which  had  been 
repealed  by  a  special  Act  of  the  Miciugaii  Legislature  the  year  before.  In  connection  with  this  new 
charter,  important  litigation  has  been  pending  for  a  number  of  years  relative  to  the  company's  claim 
against  the  State  growing  out  of  the  repeal  of  its  special  charter.  The  counterclaim  of  the  State 
against  the  company  for  alleged  non-payment  of  back  taxes  during  the  years  1855  to  1893  was  ad- 
justed in  June,  1910,  by  the  payment  to  the  State  of  $125,000. 

Since  1901  several  important  additions  have  been  made  to  the  system.  Effective  January  1, 
1904,  the  Michigan  Central  Railroad  Company  leased  the  property  operated  by  the  Canadian 
Southern  Railway  Company  for  999  years.  The  Michigan  Central  agreed  to  pay  interest  on  the 
Canadian  Southern  bonds,  and  dividends  on  its  $15,000,000  capital  stock  at  the  rate  of  2>2%  annu- 
ally until  January  1,  1910,  and  3%  thereafter.    Of  this  stock,  the  Michigan  Central  owns  $7,810,000. 

In  February,  1902,  the  Michigan  Central  Railroad  Company,  jointly  with  the  Lake  Shore 
&  Michigan  Southern  Railway  CoTupany,  took  over  the  Detroit,  Toledo  &  Milwaukee  Railroad,  133 
miles.  In  January,  1905,  the  Michigan  Central  assumed  the  operation  of  that  part  of  the  hitter's 
line  extending  from  Homer  to  Allegan,  0(5  miles,  agretnng  to  j)ay  all  maintenance  charges,  taxes,  and 
assessments  during  the  corporate  existence  of  the  Detroit,  'i'oicdo  &  Milwaukee  Railroad  Company. 

In  January,  190(5,  the  Michigan  Central  Railroad  leased  directly  the  property  of  the  Toledo, 
Canada  Southern  &  Detroit  Railway  Company  for  the  perioil  of  its  corporate  existence.  In  the  same 
year  the  company  accjuired  $3,000,000  common  stock  of  the  Chicago,  Indiana  &  Southern  Railroad 
Company.  The  balance,  $17,000,000,  was  acquired  by  the  Lake  Shore  &  Michigaii  Southern  Rail- 
way Conipanj'.  In  December,  1900,  a  majority  of  the  capital  stock  of  the  Chicago,  Kalamazoo  & 
Saginaw  Railway  Company  was  acquired.  The  latter  company  owns  a  railroad  from  Pavilion  to 
Woodbury,  Michigan,  55  miles,  and  in  May,  1907,  it  purchased  the  entire  capital  stock  of  the  Detroit 
&  Charlevoix  Railroad  Company,  owning  a  line  from  Frederick  to  East  Jordan,  Michigan,  45  miles. 

The  Michigan  Central  Railroad  Company  controls  two  important  companies  by  ownership  of 
their  entire  capital  stocks,  namely,  the  Detroit  Belt  Line  Railroad  and  the  Detroit  River  Tunnel 
Company.  The  former  was  chartered  in  May,  1909,  with  a  capital  stock  of  $100,000.  It  owns  val- 
uable terminal  and  connecting  railroad  properties  in  Detroit,  which  the  Michigan  Central  Railroad 
Company  began  to  operate  under  an  agreement  dated  July  20,  1909. 

The  Detroit  River  Tunnel  Company  was  formetl  in  1906  to  construct  a  tlouble  tunnel  under 
and  across  the  Detroit  River.  The  work  of  construction  was  begun  in  October,  1906,  and  just  four 
years  later  was  put  into  experimental  use  for  through  freight  traffic.  It  has  proved  an  entire  success, 
earning  during  its  first  fiscal  year  an  amount  sufficient  to  defray  maintenance  and  operating  expenses, 

[443  ] 


taxes,  interest  on  its  bonds,  a  dividend  of  2%  on  its  capital  stock,  and  leave  a  surplus  of  $160,000. 
The  $30,000,000  Detroit  River  Tunnel  Company  Terminal  &  Tunnel  Gold  Bonds,  bearing  the  date 
of  INIay  1,  1911,  as  issued,  have  been  guaranteed  as  to  principal  and  interest  by  the  Michigan  Central 
Railroad  Company. 

Together  with  the  New  York  Central  &  Hudson  River  Railroad  Company,  the  Lake  Shore  & 
Michigan  Southern  Railway  Company,  the  Cleveland,  Cincinnati,  Chicago  &  St.  Louis  Railway  Com- 
pany and  the  Chicago,  Indiana  &  Southern  Railroad  Company,  the  Michigan  Central  has  partici- 
pated in  the  issues  of  1907,  1910,  1912,  and  1913  of  "New  York  Central  Lines  Equipment  Trust 
Certificates."  The  obligation  of  these  issues  has  been  divided  pro  rata  among  the  above,  also  the 
equipment  purchased  by  the  proceeds  of  the  certificates.  (See  New  York  Central  &  Hudson  River 
Railroad  Company.) 

The  Michigan  Central  was  responsible,  December  31,  1911,  for  $2,864,679  of  the  Certificates 
of  1907,  and  $4,747,375  of  the  Certificates  of  1910  outstanding.  The  certificates  represent  in  each 
case  90%  of  the  cost  of  the  equipment  which  they  cover. 

A  majority  of  the  capital  stock  of  the  Michigan  Central  Railroad  Company  is  owned  by  the 
New  York  Central  &  Hudson  River  Railroad  Company.  In  January,  1912,  the  latter  owned 
$16,819,300  of  the  stock  of  this  road,  which  it  had  acquired  in  1898  by  the  exchange  of  its  3>2% 
Collateral  Trust  Gold  Bonds  at  the  rate  of  $115  in  bonds  for  each  $100  in  stock.  In  point  of  fact 
the  Michigan  Central  is  little  more  than  one  of  the  larger  divisions  of  the  New  York  Central. 
Nominally,  it  is  operated  separately  and  owned  separately,  but  it  has  much  the  same  directors 
and  ofiicers  as  the  New  York  Central. 


PROPERTY 

The  annual  report  of  the  Michigan  Central  for  the  fiscal  year  ending  December  31,  1911,  shows 
the  following  mileage: 

Miles  owned  in  fee      270.07 

Miles  of  proprietary  lines 343.31 

Miles  operated  under  lease 1,110.20 

Miles  operated  under  trackage  arrangements 93.18 

Total  miles  operated 1,816.76 

The  mileage  operated  in  1910  was  1,803.29  miles.  There  were  no  additions  during  the  year, 
the  increase  of  13.47  miles  being  an  account  of  corrections  due  to  remeasurement. 

The  company's  lines  extend  from  Buffalo,  across  southern  Ontario,  to  Detroit  and  Toletlo 
(Canadian  Southern  Lines).  From  Detroit,  a  line  runs  northerly  through  central  Michigan  to 
Mackinaw  City,  and  the  original  line  of  the  company  extends  from  Detroit  to  Joliet  and  Chicago, 
via  Kalamazoo. 

As  the  name  implies,  the  bulk  of  the  company's  mileage  (1,216  miles)  lies  in  Michigan,  whose 
population  in  1890  was  approximately  2,094,000,  and,  in  1912,  2,810,000. 


[  444  ] 


CAPITALIZATION 

December  31,  1911,  the  capitalization  of  the  Michigan  Central  Railroad  Company  was  approxi- 
mately as  follows: 

Common  stock $18,738,000 

Funded  debt 41,269,055 

Nominal  capital  of  the  IMicliigan  Central  Railroad $60,007,055 

Leased  line  bonds 22,401,000 

Total  nominal  capitalization $82,408,055 

Rentals  capitalized  at  5% 32,100,000 

Gross  capitalization      $114,508,055 

Securities  owned        9,373,719 

Net  capitalization $105,134,336 

Net  capital  per  mile  operated $57,866 

Average  miles  operated 1,816.76 

Net  income  to  net  capital 10.1% 

Fixed  charges  to  net  income 80.0% 

Margin  of  safety 20.0% 

The  company's  capital  stock  outstanding  per  mile  of  road  owned  (270  miles)  was  $69,382,  as 
compared  with  the  Lake  Shore  &  Michigan  Southern  Railway's  figure  of  $57,405  and  that  of  the 
Cleveland,  Cincinnati,  Chicago  &  St.  Louis  Railway,  $31,708.  The  funded  debts  of  the  tliree  com- 
panies, based  on  miles  of  road  owned,  compare  as  follows: 

Michigan  Central      $110,511 

Lake  Shore 192,620 

C.  C.  C.  &  St.  L 48,548 

The  net  capitalization  of  these  tliree  similar  properties  per  mile  of  road  operated  on  December  31, 
1911,  together  with  the  ratio  of  total  net  income  to  net  capitalization,  was  approximately  as  follows: 

Net  Net  income  to 

capitalization  net  capiUil 

Michigan  Central $57,866  10.1% 

Lake  Shore 144,249  10.7 

C.  C.  C.  &  St.  L 69,597  6.3 

Although  not  earning  as  much  as  the  Lake  Shore,  it  would  seem  that  the  INIichigan  Central 
is  not  over-capitalized  so  far  as  earnings  are  concerned.  The  average  net  capitalization  of  the  com- 
pany for  the  decade  ending  December  31,  1911,  was  in  the  neighborhood  of  $44,300  per  mile,  upon 
which  an  average  of  8%  was  earned. 

As  will  be  noted  above,  the  margin  of  safety  for  the  company's  fixed  charges,  including  the  in- 
terest on  its  bonds,  was  but  20%.  The  company's  securities  have  always  been  considered  a  safe 
good  investment,  and  in  spite  of  this  narrow  margin,  because  of  the  great  stability  of  earnings  which 
the  company  records  and  because  of  the  high  maintenance  charges  which  can  be  reduced  if  necessary. 


[  445  ] 


CHARACTER   OF  TRAFFIC 

Nearly  70%  of  the  Michigan  Central's  business  is  freight.  Of  this,  38%  represents  products 
of  mines,  especially  bituminous  and  anthracite  coal.  Upwards  of  25%  represents  the  carriage  of 
manufactured  articles,  a  profitable  class  of  freight.  The  following  table  shows  the  nimiber  of  revenue 
tons  carried  by  the  Michigan  Central  for  the  five  years  ending  1911 : 


Products  of 

1911 

1910 

1909 

1908 

1907 

Tons 

Tous 

Tons 

Tons 

Tons 

Agriculture     . 

2,455,882 

2,238,490 

2,389,261 

2,373,045 

2,172,775 

Animals  .    .    . 

780,176 

689,069 

766,389 

826,606 

935,581 

Mines      .    .    . 

7,318,605 

7,098,050 

6,133,308 

5,355,084 

6,095,6.35 

Forests    .    .    . 

2,329,004 

2,542,891 

2,271,789 

1,703,955 

2,129,055 

Manufactures 

4,361,304 

4,212,453 

4,056,075 

3,096,461 

3,917,389 

Miscellaneous 

1,483,782 

1,595,525 
18,370,478 

1,201,732 
16,818,554 

992,313 
14,347,464 

1,287,728 

Total  tonnage 

18,728,753 

16,538,163 

Given  below  are  the  freiglit  densities,  train  load  tons,  freight  earnings  and  the  average  rates 
per  ton  per  mile  of  the  Michigan  Central  for  the  years  1907  to  1911  inclusive.  It  will  be  seen  that, 
with  a  practically  stationary  rate  for  the  period,  earnings  varied  as  the  company's  density  figures. 
In  1911  the  Michigan  Central's  freight  earnings  were  $250,000  greater  than  in  1910,  although  nearly 
$400,000  smaller  than  the  record  earnings  of  1907. 

Year  Freight  Train  Freight  Average  rate 

density  load  earnings  per  ton 

tons  per  mile 

1907 1,734,098  420  $19,926,803  $.0064 

1908 1,508,660  379  16,947,001  .0063 

1909 1,670,374  400  18,267,530  .0063 

1910 1,724,972  419  19,282,288  .0063 

1911 1,700,002  424  19,538,684  .0064 

Nearly  one-quarter  of  the  company's  business  is  passenger.  With  the  exception  of  1908,  when 
there  was  a  decline  in  local  and  interline  passenger  traffic,  there  have  been  steady  increases  reported 
in  passenger  density  —  the  number  of  passengers  carrietl  one  mile  jier  mile  of  road  operated  —  pas- 
senger train  load,  and  earnings,  since  1907. 

Year  Passenger       Number  of  Passenger  Average  rate 

density  passengers  earnings  per  passenger 

per  train  per  mile 

1907 183,911  52  $6,541,102  $.0205 

1908 181,791  55  6,0:50,419  .0195 

1909 200,702  54  6,655,698  .0195 

1910 217,085  56  7,404,475  .0195 

1911 219,703  57  7,607,052  .0198 


[  446  ] 


EARNINGS 

Michigan  Central's 

gross  and  net  earnings  for  the  five  years  i 

ending  1911 

are  as  fo 

Year                       Miles 
operated 

Earn! 
Gross 

ngs 

Per  mile 

Earn: 
Net 

'°^^  Per  mile 

Operating 
rate 

1907  .    .    .      1,746 

1908  .    .    .      1,746 

1909  .    .    .      1,746 

1910  .    .    .      1,803 

1911  .    .    .      1,817 

$28,547,109 
24,918,487 
27,415,467 
29,694,815 
30,164,490 

$16,350 
14,272 
15,702 
16,469 
16,601 

$5,415,359 
5,913,135 
8,915,938 
8,065,909 
9,418,259 

$3,102 
3,388 
5,108 
4,474 
5,186 

81.03% 

76.27 

67.48 

72.84 

68.78 

All  the  revenue-producing  departments  of  the  company  reported  decreases  in  gross  earnings 
in  1908.  Freight  earnings  fell  nearly  $3,000,000,  due  to  decreased  movement  in  nearly  all  commodi- 
ties; passenger  and  express  earnings  together  declined  over  $500,000.  Curtailments  of  expense  were 
effected  through  general  economies.  $3,000,000  was  taken  from  the  maintenance  accounts  and 
$1,100,000  less  was  spent  for  transportation  costs  than  in  1907,  reducing  the  operating  ratio  to  76.27% 
as  compared  with  the  relatively  high  figure  of  81.03%  in  1907. 

From  1909  to  1911  substantial  increases  were  reported  in  gross  earnings  and,  with  the  excep- 
tion of  1910,  in  net  earnings.  During  the  fiscal  year  1911  the  Michigan  Central  showed  the  largest 
gross  and  net  earnings  it  had  ever  reported.  Gross  earnings  increased  $470,000  and  operating  ex- 
penses decreased  about  $880,000,  reducing  the  company's  operating  ratio  to  08.78%  as  above. 


MAINTENANCE 

The  Michigan  Central  Railway  Company  has  spent  the  following  amounts  for  maintenance  of 
way  and  equipment  since  1907: 

Year  Maintenance  Total  Per  mile 

Way  Equipment  maintenance 

1907 $4,991,923  $4,070,277  $9,062,200  $5,190 

1908 3,061,374  2,978,743  6,040,117  3,459 

1909 3,458,165  3,756,581  7,214,746  4,131 

1910 4,035,260  4,124,365  8,159,625  4,525 

1911 3,549,204  3,800,772  7,349,976  4,044 

A  glance  at  the  per  mile  column  above  will  show  that  the  Michigan  Central  has  spent  large  sums 
for  maintenance,  especially  in  1907,  when  nearly  $5,200  of  income  per  mile  was  put  directly  back 
into  the  property.  During  the  period  in  question  the  company  spent  nearly  $38,000,000  for  main- 
tenance of  way  and  equipment,  an  average  of  over  $7,500,000  per  year,  or  $4,270  per  mile. 

During  the  decade  the  traffic  density  and  the  maintenance  charges  of  the  Michigan  Central, 
the  Lake  Shore,  and  the  Big  Four,  similar  properties,  have  averaged  as  follows : 

Ten-year  average  Traffic  Maintenance 

density  per  mile 

Michigan  Central      1,730,894  $4,270 

Lake  Shore 3,736,996  8,245 

C.  C.  C.  &  St.  L 1,608,160  3,566 

Relatively  speaking,  the  Michigan  Central's  showing  is  the  best.  The  Lake  Shore's  traffic 
density  is  over  llO^o  greater  than  that  of  the  Michigan  Central's,  while  the  former  spent  93% 
more  than  the  latter.  The  Michigan  Central,  with  a  traffic  density  of  but  123,000  more  than  the  Big 
Four,  spent  $700  a  mile  more  than  the  latter. 

[447  ] 


ADDITIONS   AND   BETTERMENTS 

Not  until  1909  did  the  company  tabulate  the  amounts  it  spent  for  additions  and  betterments. 
The  following  table  shows  how  much  has  been  spent  since  then  and  charged  to  "Cost  of  Property  and 
Equipment": 

Year  Additions  and  betterments  Total 

Main  line  Leased  and  pro- 

prietary lines 

1909 $1,069,702      $872,734       $1,942,436 

1910 10,223,514      1,001,234       11,224,748* 

1911 176,754       544,202         720,954 

$13,888,138 

Since  June  30,  1907,  the  Michigan  Central  has  spent  $3,756,123  of  income  for  additions  to 
property.  This  figure  appears  on  the  balance  sheet  of  December  31,  1911,  in  accordance  with  the 
ruling  of  the  Interstate  Commerce  Commission. 


DIVIDENDS 

Since  1895  the  company  has  paid  the  following  dividends: 

Year  Rate  Year  Rate 

1895-1906 4%  1908 5% 

1907 6  1909-1912 6 

Previous  to  1895  the  Michigan  Central  paid  somewhat  higher  dividends  than  4%,  but  the  pay- 
ments were  not  regular.  On  December  31,  1911,  the  company  showed  a  free  surplus  of  $11,228,059, 
which,  together  with  the  surplus  of  $3,756,123,  appropriated  for  additions  to  property,  amounted  to 
$14,984,182,  or  80%  of  the  company's  outstanding  capital  stock. 


STATISTICS 

Following  are  the  capitalization,  earnings  and  traffic  statistics  of  the  Michigan  Central  Railroad, 
based  on  the  average  miles  operated  for  the  year  1900  and  for  the  years  1905  to  1911  inclusive: 

*  The  1910  figures  include  new  equipment  purchased  with  the  proceeds  of  the  Equi|)mpnt  Trust  Certificates. 


[  448  ] 


MICHIGAN    CENTRAL   RAILROAD 


Fiscal 

CapiUil 

Funded 

Kentals 

Gross 

Owned  by 

Net 

Average 

Extra 

year 

stock 

debt 

@.  5% 

capital 

company 

capital 

miles 

mam 

$11,460 

$25,680 

$5,934 

$43,074 

operated 
1,635 

track 

1900 

$466 

$42,608 

262 

1905 

10,738 

26,416 

6,432 

43,586 

4,117 

39,409 

1,745 

439 

1906 

10,738 

27,316 

6,490 

44,544 

6,208 

38,336 

1,745 

518 

1907 

10,732 

33,886 

5,844 

50,462 

7,186 

43,276 

1,746 

547 

1908 

10,732 

35,465 

5,844 

50,041 

4,660 

45.381 

1.746 

547 

1909 

10,732 

36,976 

5,844 

53,552 

5,360 

48.192 

1,746 

547 

1910 

10,392 

35,047 

6,493 

52,532 

4,791 

47,741 

1,803 

610 

1911 

10.312 

35,041 

17,672* 

63,025 

5,159 

57,866 

1.817 

610 

Fiscal 

Gross 

Ma 

ntenanre 

Transportation 

Net 

Other 

Total 

Fixed 

.Surplus 

year 

operatmg 

and  general 

operatmg 

income 

net 

charges 

available 

revenue 

Way 
$1,616 

Equipment 

$1,472 

expense 

revenue 

$27 

$2,452 

$1,940 

for  dividends 

1900 

$10,229 

$4,716 

$2,425 

$512 

1905 

13,343 

1,959 

2.513 

6,338 

2,533 

181 

2,714 

2,155 

559 

1906 

15,057 

2.000 

3,176 

7.277 

2,604 

230 

2,834 

2,269 

565 

1907 

16,350 

2.859 

2.331 

8.058 

3,102 

402 

3,504 

2,513 

991 

1908 

14,272 

1,753 

1,700 

7,425 

3,388 

375 

3,763 

2,830 

933 

1909 

15,702 

1,980 

2,151 

6.463 

5,108 

539 

5,447 

3,686 

1,761 

1910 

16,469 

2,238 

2,287 

7,470 

4,474 

606 

5,080 

4,127 

953 

1911 

16.601 

1.953 

2.091 

7,372 

5,186 

649 

5.835 

4,668 

1,167 

Fiscal 

Divi- 

Other 

Surplus 

Operating 

Total  main- 

Conducting 

Fixed 

Gross 

Net 

Per  cent 

year 

dends 

charges 

expenses 

tenance 

transporta- 

charges 

eammgs 

income 

earned  on 

to 

to  gross 

to  gross 

tion  to  gross 

to  gross 

to  gross 

to  net 

capital 

$453 

income 
$49 

$10 

earnings 

eammgs 

eammgs 

earnings 

capital 

capital 
5.7% 

stock 

1900 

76.28% 

29.2% 

47.1% 

19.0% 

23.7% 

4.5% 

1905 

424 

135 

81.03 

33.4 

47.0 

16.2 

30.6 

6.8 

5.2 

1906 

5.37 

28 

82.70 

34.2 

48.5 

15.1 

33.8 

7.4 

5.3 

1907 

860 

131 

81.03 

32.6 

49.4 

15.4 

.32.4 

8.1 

9.2 

1908 

640 

293 

76.27 

24.3 

52.0 

20.0 

28.5 

8.3 

8.7 

1909 

640 

314 

807 

67.48 

26.3 

41.2 

23.4 

29.3 

11.3 

16.4 

1910 

623 

138 

192 

72.84 

27.3 

45.5 

25.1 

31.4 

10.7 

9.1 

1911 

618 

549 

68.78 

24.4 

44.4 

26.1 

26.3 

10.1 

14.5 

Fiscal 

year 

Train 

mile 

earnings 

(gross) 

Maintenance 
train  mile 
Way      Equipmen 
$.194         $.177 

Conducting 
transpor- 
tation per 
revenue 
train  mile 

$.567 

Train 

earnings 
(net) 

Rate  per 

Per 

passenger 

mile 

Per 

ton 

Freight 
density 

Train 

load 

revenue 

228 

Freight 
to  all 
traffic 

71%, 

Passenger 

freight 

and 

company 

cars 

1900 

$1.23 

$.29 

$.0219 

$.0059 

1,226,974 

14,827 

1905 

1.96 

.287 

.369 

.930 

38 

.0206 

.0062 

1,481,375 

418 

70 

17,340 

1906 

2.06 

.273 

.434 

.994 

36 

.0210 

.0063 

1,668,100 

439 

70 

20,024 

1907 

2.16 

.377 

.308 

1.064 

41 

.0205 

.0064 

1,734,098 

420 

70 

20,394 

1908 

2.00 

.246 

.239 

1.041 

47 

.0195 

.0063 

1,508,660 

379 

08 

20,074 

1909 

2.10 

.265 

.288 

.866 

68 

.0195 

.0063 

1,670,374 

406 

67 

19,780 

1910 

2.19 

.297 

.303 

.991 

59 

.0198 

.0063 

1,724,972 

419 

65 

19,450 

1911 

2.24 

.264 

.282 

.996 

70 

.0198 

.0064 

1.700,002 

424 

65 

18.766 

Increase  ilue  to  tolls  on  the  Detroit  Uiver  Timnc 

[  449  ] 


BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Michigan  Central 

Railroad  System,  together  with  the  bases  on  which  they  have 

sold   during  the  decade  ending   December   31,    1912: 


MICHIGAN   CENTRAL  RAILROAD 


First  Mortgage  33^s 


Dated  May  1,  1902  Maturing  May  1,  1952 

Interest  payable  May  1  and  November  1  at  the  Guaranty  Trust  Company,  New  York. 


Coupon  bonds  of  ■ 
Authorized  $18,000,000 


,000,  registerable  as  to  principal  or  fully  registerable. 


Provisions  of 
issue : 

Security : 


Trustee : 


Outstanding  $14,000,000 
Per  mile  .    .  51,850 


Of  the  $18,000,000  authorized,  $14,000,000  are  outstanding  as  above,  and  the  balance, 
$4,000,000,  have  been  reserved  for  additions  and  improvements,  with  restrictions. 

The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Detroit,  Mich., 
to  Kensington,  111.,  via  Kalamazoo,  Mich.,  270.07  miles,  together  with  terminal  properties  on 
the  line  and  future  acquisitions.  The  mileage  mortgaged  above  is  the  best  part  of  the  comi)any's 
entire  property. 

Guaranty  Trust  Company,  New  York. 

These  bonds  sold  in  1903  on  a  3.50  to  3.60  basis 


1904 

3.62 

3.65 

1905 

3.50 

3.60 

1906 

3.55 

3.72 

1907 

3.75 

3.85 

1908 

3.87 

4.10 

1909 

3.80 

4.05 

1910 

4.00 

4.20 

1911 

4.05 

4.15 

1912 

4.20 

4.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Enghmd. 


MICHIGAN   CENTRAL  RAILROAD 

Detroit  &  Bay  City  Railroad  First  Mortgage  5s 

Dated  March  10,  1881  Maturing  March  1,  1931 

Interest  payable  on  cou])on  bonds  on  March  1  and  September  1;  on  registered  bonds  March  1,  June  1, 

September  1  and  December  1,  at  the  Union  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  exchangeable  for  registered  bonds. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 


Authorized  $4,000,000 


Outstanding  $4,000,000 
Per  mile  .    .  23,400 


Security:  The  above  bonds  are  a  direct  obligation  of  the  Michigan  Central  Railroad  Company,  and  are 

secured  by  a  first  mortgage  on  170  miles  of  the  Detroit  &  Bay  City  Railroad's  lines,  including 
I  452  ] 


the  one  from  Detroit  to  Bay  City,  Mich.,  107  miles.     The  above  mortgage  was  executed 
jointly  by  the  Michigan  Central  Railroad  and  the  Detroit  &  Bay  City  Railroad  Companies. 

Trustee:  Union  Trust  Company,  New  York. 

The  Detroit  &  Baj-  City  Railroad  was  organized  in  May,  1871.  Its  main  line  was  opened  through- 
out July  31,  1873.  Interest  payments  on  the  company's  funded  debt  were  defaulted  in  May,  1875, 
and  the  property  was  sold  under  foreclosure,  February  12,  1881,  being  purchased  for  the  account  of 
the  Michigan  Central  Railroad  Company,  which  took  possession  April  1,  1881,  and  has  operated  it 
ever  since. 

These  bonds  sold  in  1905  on  a  3.75  basis 

1910  4.30  (bid) 

1911  4.25  (bid) 
December,  1912  4.50  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


MICHIGAN   CENTRAL   RAILROAD 
Jackson,  Lansing  &  Saginaw  Railroad  First  Mortgage  33  ^s 

Dated  September  1,  1901  Maturing  September  1,  1951 

Interest  payable  ]March  1  and  September  1  at  the  Guaranty  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000. 

Authorized  $2,000,000  Outstanding  $1,723,000 

Per  mile  .     .  4,650 

Trovisions  of      Of  tiie  $2,000,000  authorized  and  issued,  $1,723,000  are  outstanding  as  above,  and  $277,000 
issue:  ha\c  been  purchased  and  retired  by  the  Land  Grant  Trustees. 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Michigan  Central  Railroad  C'ompany,  and  are 

secured  by  a  first  mortgage  on  370.07  miles  of  the  Jackson,  Lansing  &  Saginaw  Railroad's  lines, 
including  the  one  from  Jackson  to  Mackinaw  City,  Mich.,  296  miles.  The  above  mortgage 
was  executed  by  the  Jackson,  Lansing  &  Saginaw  Railroad  Company. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  Jackson,  Lansing  &  Saginaw  Railroad  Company  was  organized  February  24,  1865,  in  Mich- 
igan, to  take  over  the  incomplete  Amboy,  Lansing  &  Traverse  Bay  Railroad,  which  had  been  opened 
between  Owosso  and  Lansing,  Michigan,  in  1863.  It  was  leased  in  perpetuity  to  the  Michigan 
Central  Railroad  Company,  commencing  September  1,  1871.  By  an  agreement  the  latter  possesses 
and  operates  the  road,  and  owns  $674,300  of  the  $2,000,000  capital  stock  of  the  company. 

In  December,  1912,  a  4.15  basis  was  asked  for  these  bonds. 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 

[453  ] 


MICHIGAN   CENTRAL  RAILROAD 

Kalamazoo  &  South  Haven  Railroad  First  Mortgage  Currency  5s 

Dated  November  1,  1889  Maturing  November  1,  1939 

Interest  payable  May  1  and  November  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000. 
Registered  bonds  of  $1,000  and  $5,000. 

Authorized  $700,000  Outstanding    $700,000 

Per  mile  .    .        17,500 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Michigan  Central  Railroad  Company,  and  are 

secured  by  a  first  mortgage  on  the  Kalamazoo  &  South  Haven  Railroad  Company's  line  from 
Kalamazoo  to  South  Haven,  Mich.,  39.5  miles,  together  with  future  acquisitions.  The  above 
mortgage  was  executed  jointly  by  the  Michigan  Central  Railroad  and  the  Kalamazoo  &  South 
Haven  Railroad  Companies. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  Kalamazoo  &  South  Haven  Railroad  was  organized  April  15,  1869,  in  Michigan.  Its 
line  was  opened  for  traffic,  January  2,  1871,  when  it  was  operated  under  a  lease  by  the  Michigan  Cen- 
tral Railroad  Company,  who  guaranteed  interest  on  the  company's  bonds  and  assumed  its  funded 
obligations.  The  latter  owns  $257,500  of  the  $325,400  capital  stock  of  the  Kalamazoo  &  South 
Haven  Railroad. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts and  Connecticut. 


MICHIGAN   CENTRAL  RAILROAD 
Michigan  Air  Line  Railroad  First  Mortgage  Currency  4s 

Dated  January  1,  1890  Maturing  January  1,  1940 

Interest  payable  January  1  and  July  1  at  the  Union  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000. 
Registered  bonds  of  $1,000  and  $5,000. 

Authorized  $2,600,000  Outstanding  $2,600,000 

Per  mile  .    .  22,600 

Security :  The  above  bonds  are  a  direct  obligation  of  the  Michigan  Central  Railroad  Company,  and  are 

secured  by  a  first  mortgage  on  the  Michigan  Air  Line  Railroad's  line  from  Jackson,  Mich.,  to 
South  Bend,  Ind.,  115.16  miles,  together  with  future  acquisitions.  These  bonds  were  executed 
jointly  by  the  Michigan  Central  and  the  Michigan  Air  Line  Railroad  Companies. 

Trustee:  Union  Trust  Company. 

The  Michigan  Air  Line  Railroad  was  organized  August  25,  1868,  and  consolidated  with  the  St. 
Joseph  Valley  Railroad  Company  in  October,  1870.    Its  line  was  thrown  open  for  traffic  in  February, 

[  454  ] 


1871,  from  which  time  it  was  leased  for  999  years  to  the  Michigan  Central  Railroad  Company  at  a 
rental  equal  to  the  interest  accruing  on  issued  bonds.  The  latter  owns  $334,262  of  the  $392,750 
capital  stock  of  the  Michigan  Air  Line  Railroad  Company. 

These  bonds  sold  in  1909  on  a  4.00  to  4.08  basis 

1910  4.15  basis  (bid) 

1911  4.10  (asked) 

1912  4.12 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Vermont, 
Massachusetts  and  Connecticut. 


MICHIGAN   CENTRAL   RAILROAD 

Joliet  &  Northern  Indiana  Railroad  First  Mortgage  4s 

Dated  July  10,  1907  Maturing  July  10,  1957 

Interest  payable  January  10  and  July  10  at  the  Guaranty  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000. 
Coupon  and  registered  bonds  interchang 


Authorized  $3,000,000  Outstanding  $1,500,000 

Per  mile  .    .  33,330 

Security :  The  above  bonds  are  a  direct  obligation  of  the  Michigan  Central  Railroad  Company,  and  are 

secured  by  a  first  mortgage  on  the  Joliet  &  Northern  Indiana  Railroad's  line  from  Lake  Sta- 
tion, Ind.,  to  Joliet,  111.,  45  miles,  together  with  future  acquisitions.  The  above  mortgage 
was  executed  jointly  by  the  Michigan  Central  and  the  Joliet  &  Northern  Indiana  Railroad 
Companies. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  Joliet  &  Northern  Indiana  Railroad  Company  was  leased  from  the  date  of  its  completion 
in  September,  1854,  in  perpetuity,  to  the  Michigan  Central  Railroad  Company,  at  a  rental  equal  to 
5%  on  the  company's  outstanding  stock,  interest  on  the  company's  bonds,  and  organization  expenses. 
The  entire  capital  stock  of  this  company  is  owned  by  the  Michigan  Central  Railroad  Company. 

These  bonds  were  quoted  in  December,  1912,  on  a  4.30  basis. 

These  bonds  are  considered  a  legal  investment  for  all  savings  banks  in  New  England  except  Vermont. 


[  455  ] 


MICHIGAN   CENTRAL  RAILROAD 
Grand  River  Valley  Railroad  First  Mortgage  4s 

Dated  September  1,  1909  Maturing  September  1,  1959 

Interest  payable  March  1  and  September  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000  and  multiples. 
Coupon  and  registered  bonds  interchangeable. 

Authorized  $4,500,000  Outstanding  $1,500,000 

Per  mile  .    .  17,850 

Provisions  of      Of  the  total  amount  authorized,   $1,500,000  are  outstanding  as  above,  and   the   balance, 
issue:  $3,000,000,  lias  been  reserved  for  improvements,  additions  and  extensions,  with  restrictions. 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Michigan  Central  Railroad  Company,  and  are 

secured  by  a  first  mortgage  on  the  Grand  River  Valley  Railroad  line  from  Rives  Junction  to 
Grand  Rapids,  Mich.,  83.79  miles,  together  with  future  acquisitions.  The  above  mortgage 
was  executed  jointly  by  the  Michigan  Central  and  the  Grand  River  Valley  Railroad  Companies. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  Grand  River  Valley  Railroad  was  chartered  under  the  laws  of  the  State  of  Michigan  in  1846, 
and  opened  for  traffic  in  the  spring  of  1870.  It  was  leased  from  the  date  of  its  opening  to  the  Mich- 
igan Central  Raihoad  Company,  which  pays  as  a  rental  the  interest  on  the  company's  bonds  and  5% 
on  its  stock.    The  Michigan  Central  Railroad  Company  owns  $156,900  of  its  $491,200  capital  stock. 

The.se  bonds  were  quoted  in  Deceml)er,  191!^,  on  a  4.35  basis  (bid). 

The.se  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Connecticut 
and  Rhode  Island. 


MICHIGAN   CENTRAL   RAILROAD 

Twenty-year  Debenture  Gold  4s 

Dated  April  I,  1909  Maturing  April  1,  1929 

Interest  payable  April  1  and  October  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000,  and  multiples  of  $10,000. 

Authorized  $25,000,000  Outstanding  $7,034,000 

Security:  The  above  bontls  arc  a  direct  obligation  of  the  Michigan  Central  Railroad  Company,  but  are 

not  secured  by  a  mortgage.     The  company,  however,  agrees  in  its  indenture  to  make  no  new 
mortgage  upon  its  road  without  equally  securing  thereby  the  bonds  of  this  issue. 

Trustee:  Guaranty  Trust  Comj)any,  New  York. 

[  456  J 


These  bonds  were  sold  in  190!)  on  a  4.35  to  4.G5  basis 

1910  4.60       4.90 

1911  4.60       4.80 

1912  4.70       5.00 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


TOLEDO,   CANADA   SOUTHERN   &  DETROIT   RAILWAY 
First  Mortgage  4s 

Dated  January  2,  1906  Maturing  January  1,  1956 

Interest  payable  January  1  and  July  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $4,500,000  Outstanding   $3,100,000 

Per  mile  .    .  52,550 

Provisions  of      Of  the  total  amount  authorized,  $1,600,000  are  outstanding  in  the  hands  of  the  public,  and 
issue:  $1,500,000  are  owned  by  the  Canada  Southern  Railway,  upon  which  no  interest  is  i)aid.    The 

balance,  $1,400,000,  has   been  reserved   for   extensions,  imi)rovements  and  additions,  with 
restrictions. 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Canada  Southern  Railway's  line  from 

West  Detroit  to  Canada  Southern  Junction,  O.,  59  miles.     These  bonds  were  issued  to  the 
Canada  Southern  Railway  Company  in  payment  of  old  bonds  and  arrears  of  interest  thereon. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  endorsement  by 
the  Michigan  Central  Railroad  Company. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  Toledo,  Canada  Southern  &  Detroit  Railway  was  chartered  July  li),  1872,  under  the  laws 
of  Michigan  and  Ohio,  as  the  consolidation  of  the  Detroit  &  State  Line  Railroad  Company  of  jNIicli- 
igan  and  the  Jinietion  Railway  Company  of  Ohio.  It  was  leased  in  perpetuity  to  the  Michigan 
Central  Railway  Company  January  2,  1906,  at  a  rental  equal  to  the  principal  and  interest  on  the 
above  bonds. 

These  bonds  were  (pioted  in  1909  on  a  4.30  basis  (bid) 

1910  4.35 

1911  4.35 
December,  1912           4.37 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


[  457 


BATTLE   CREEK   &   STURGIS   RAILWAY 
First  Mortgage  3s 

Dated  December  1,  1889  Maturing  December  1,  1989 

Interest  payable  June  1  and  December  1  at  the  Union  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $500,000  Outstanding  $500,000 

Per  mile  .    .       12,200 

Security :  These  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Battle  Creek  to  Sturgis, 

Mich.,  41  miles,  together  with  all  property  now  owned  or  hereafter  acquired,  and  all  franchises 
and  incomes. 

These  bonds  are  GUAEANTEED  as  to  PRINCIPAL  and  INTEREST  by  endorsement  by 
the  Michigan  Central  Railroad  Company.  The  Lake  Shore  &  Michigan  Southern  Railway 
GUARANTEES  bonds  numbered  1  to  79  inclusive. 

The  above  mileage  is  operated  by  both  the  Michigan  Central  Railroad  and  the  Lake  Shore  & 
Michigan  Southern  Railway  Companies,  the  former  operating  33.8  miles  from  Battle  Creek  to 
Findlay,  Mich.,  the  latter  7.2  miles  from  Findlay  to  Sturgis. 

Trustee:  Metropolitan  Trust  Company,  New  York. 

The  Battle  Creek  &  Sturgis  Railway  was  chartered  November  14,  1889,  under  the  laws  of  the 
State  of  Michigan,  being  organized  to  take  over  the  property  of  the  St.  Louis,  Sturgis  &  Battle  Creek 
Railway  Company  which  had  been  placed  in  the  hands  of  a  receiver  in  January  of  that  year.  The 
entire  capital  stock  of  the  Battle  Creek  &  Sturgis  Railway  Company  is  owned  by  the  Michigan  Cen- 
tral Railroad  and  the  Lake  Shore  &  Michigan  Southern  Railway  Companies,  the  former  holding 
$417,500,  and  the  latter  $82,500  of  the  $500,000  stock. 

These  bonds  were  quoted  in  1909  on  a  4.35  basis  (bid) 

1910  4.35 

1911  4.35 
December,  1912  4.55 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


[  458  ] 


BAY   CITY   &   BATTLE   CREEK  RAILWAY 

First  Mortgage  3s 

Dated  December  1,  1889  Maturing  December  1,  1989 

Interest  payable  June  1  and  December  1  at  the  Union  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $1,800,000  Outstanding  $250,000 

Per  mile  .    .       13,890 

Provisions  of      Of  the  amount  outstanding,  as  above,  $202,000  are  held  by  the  public,  and  $48,000  are  in  the 
issue:  treasury  of  the  Michigan  Central  Railroad  Company.     The  balance,  $1,550,000,  is  issuable 

for  new  construction  at  $15,000  a  mile. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line,  from  Bay  City  to 

Battle  Creek,  Mich.,  18  miles,  together  with  all  property  of  every  kind  acquired  or  hereafter 
acquired,  and  also  all  rights  and  franchises. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  endorsement  by 
the  Michigan  Central  Railroad  Company. 

Trustee:  Metropolitan  Trust  Company,  New  York. 

The  Bay  City  &  Battle  Creek  Railway  Company  was  chartered  November  14,  1889,  under  the 
laws  of  Michigan.  Its  road  was  opened  for  traffic  in  December,  1889,  and  it  passed  under  the  control 
of  the  Michigan  Central  Railroad  Company  June  1,  1890,  through  the  ownership  of  the  company's 
entire  capital  stock. 

These  bonds  were  quoted  in  1909  on  a  4.35  basis  (bid) 

1910  .      4.35 

1911  4.35 
December,  1912  4.55 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


CANADA   SOUTHERN   RAILWAY 

First  &  Refunding  Consolidated  Mortgage  5s 

Dated  October  1,  1912  Maturing  October  1,  1962 

Interest  payable  April  1  and  October  1  at  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $40,000,000  Outstanding  $22,500,000 

Provisions  of      Of  the  total  amount  authorized  $22,500,000  are  outstanding  as  above,  $130,000  have  been 
issue:  reserved  to  retire  prior  liens,  and  $17,370,000  have  been  reserved  for  improvements  and 

extensions,  limited  by  the  terms  of  the  indenture  to  $3,000,000  annually. 
[  459  ] 


Security:  The  above  bonds  are  a  direct  obligation  of  the  Canada  Southern  Railway  Company,  and  are 

secured  by  a  direct  first  lien  on  366.24  miles  of  road,  including  the  lines  from  Windsor  to 
Suspension  Bridge  226.18  miles,  St.  Clair  Junction  to  Courtrigge  62.63  miles,  and  Niagara 
to  Fort  Erie  30.6  miles,  all  in  Ontario.  They  are  further  secured  by  a  second  mortgage  on 
13.80  miles  from  Comber  to  Leamington  covered  by  the  first  lien  of  the  Leamington  & 
St.  Clair  First  Mortgage  4s  of  1945. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Michigan  Cen- 
tral Railroad  Company. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  Canada  Southern  Railway  Company  was  chartered  February  28,  1868,  under  the  Laws  of 
the  Dominion  of  Canada.  The  entire  line  was  open  for  traffic  November  15,  1873.  On  January 
1,  1883,  the  Michigan  Central  Railroad  Company  began  to  operate  the  property  of  the  Canada 
Southern  Railway  Company,  under  a  s])eciai  agreement  which  terminated  January  1,  1904.  On  the 
same  day  the  Michigan  Central  Railroad  Company  took  a  lease  of  the  property  for  999  years, 
agreeing  to  pay  as  rentals,  dividends  at  the  rate  of  2^%  per  annum  until  January  1,  1910,  and 
3%  per  annum  thereafter,  at  the  same  time  assuming  all  the  obligations  of  the  company. 

The  Michigan  Central  Railroad  Company  owns  $7,810,000  of  the  $15,000,000  capital  stock  of 
the  Canada  Southern  Railway  Company.  J.  P.  Morgan  &  Companj'  offered  $20,000,000  of  the 
above  bonds  to  the  holders  of  First  Mortgage  5s  and  Second  Mortgage  5s  maturing  respectively 
January  1,  1913,  and  March  1,  1913,  in  exchange  for  the  same.  The  balance.  $2,500,000,  was 
offered  to  the  public  at  106  and  interest. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


LEAMINGTON    &   ST.   CLAIR   RAILWAY 
First  Mortgage  4s 

Dated  October  1,  1805  ALaturing  October  1,  1945 

Interest  payable  April  1  and  October  1  at  the  Bank  of  Montreal,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $130,000  Outstanding    $130,000 

Per  mile  .    .  9,300 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Leamington  &  St.  Clair  Railway  from 

Leamington  to  Comber  Station,  Ontario,  13.80  miles;  also  on  lands,  buildings,  rolling  stock, 
incomes  and  franchises  now  owned  or  hereafter  acquired. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Canada  Southern 
Railway  Company  by  endorsement. 

Equity:  The.se  bonds  are  prior  in  lien  to  the  Canada  Southern  Railway  First  5s  of  1962. 

The  Leamington  &  St.  Clair  Railway  Company  was  chartered  March  2,  1887.    The  road  was 
opened  throughout  in  November,  1888.    In  June,  1895,  the  company  was  purchased  by  the  Canada 

[  460  ] 


Southern  Railway  Companj',  and  was  merged  in  that  road  in  1904.  The  Canada  Southern  Railway 
Company  owns  the  entire  capital  stock  and  guarantees  principal  and  interest  on  the  bonds  by 
endorsement. 


DETROIT   RIVER   TUNNEL   COMPANY 
Detroit  Terminal  &  Tunnel  First  Mortgage  4}/is 


Dated  May  1,  1911 


Maturing  May  1,  1961 


Interest  payable  May  1  and  November  1  at  New  York. 


Coupon  I)onds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000. 

Coui)on  and  registered  bonds  interchangeable. 


Authorized  $30,000,000 


Outstanding  $14,000,000 


Provisions  of      Of   the   $30,000,000   authorized,   $14,000,000   are  outstanding   as   above,   and   the   balance, 
issue:  $16,000,000,   has    been    reserved    for    additions,   improvements,    extensions,    additional    real 

estate,  equipment  or  other  property,  with  restrictions. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  all  terminal  and  tunnel  property  now  or 

hereafter  constructed,  and  all  property  used  in  connection  therewith;  also  on  interest  in  any 
agreement  made  between  the  company  and  the  Michigan  Central  Railroad  Company  for  main- 
tenance and  operation  of  this  property;   also  on  all  incomes  and  franchises. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Michigan  Central 
Railroad  Company  by  endorsement. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  Detroit  River  Tunnel  Company  was  formed  in  1906  to  construct  a  double  tunnel  under  and 
across  the  Detroit  River.    In  1910  the  work  was  completed  and  the  tunnel  put  in  operation. 

These  bonds  were  quoted  in  December,  1912,  on  a  4.02  basis  (bid). 
These  bonds  are  considered  a  legal  invostment  for  savings  banks  in  New  Ham[)s]iire  and  Rhode  Island. 


[  461  ] 


NEW  YORK  CENTRAL  &  HUDSON  RIVER  RAILROAD  COMPANY 


NEW  YORK  CENTRAL  &  HUDSON  RIVER  RAILROAD  COMPANY 


HISTORY 

The  New  York  Central  &  Hudson  River  Railroad  Company,  one  of  the  most  important  in  the 
United  States,  actually  operates,  directly  and  through  controlhng  interests,  over  12,700  miles 
of  main  track,  including  the  properties  of  the  Lake  Shore  &  Michigan  Southern  Railway,  the  Michi- 
gan Central  Railroad,  the  New  York,  Chicago  &  St.  Louis  Railway,  the  Lake  Erie  &  Western  Rail- 
road, the  Cleveland,  Cincinnati,  Chicago  &  St.  Louis  Railway,  the  Chicago,  Indiana  &  Southern 
Railroad,  the  Cincinnati  Northern  Railroad,  the  Pittsburgh  &  Lake  Erie  Railroad,  the  Toledo  & 
Ohio  Central  Railway,  besides  its  own  system  of  directly  operated  and  leased  lines  located  east  of 
Buffalo  and  Lake  Erie. 

The  system  covers  a  thickly  settled  territory,  including  most  of  the  important  commercial 
centres  in  the  States  of  New  York,  Ohio,  Indiana,  Illinois  and  Michigan.  It  serves  the  cities  of 
New  York,  Chicago,  St.  Louis,  Boston,  Cleveland,  Pittsburg,  Detroit,  Buffalo,  Columbus,  Cincin- 
nati, etc. 

The  New  York  Central  &  Hudson  River  Railroad  Company  proper  was  organized  November 
1,  1869,  as  the  consolidation  of  the  New  York  Central  Railroad  and  the  Hudson  River  Railroad 
Companies.  The  former  had  been  organized  as  early  as  1853  to  consolidate  the  railroads  between 
Albanj'  and  Buffalo,  New  York.  The  Hudson  River  Railroad  Company  was  chartered  May  12, 
1846,  and  the  road  was  thrown  open  to  traffic  over  its  entire  length  from  New  York  to  Albany  in 
the  fall  of  1851. 

From  the  outset  the  New  York  Central  &  Hudson  River  Railroad  Company  began  building  up 
a  system  of  leased  lines.  The  New  York  &  Harlem  Railroad,  which  had  been  chartered  in  1831, 
was  leased  for  400  years  from  April  1,  1873,  its  rental  being  8%  on  the  company's  stock  and  interest 
on  its  bonds.  The  Spuyten  Duyvil  &  Port  Morris  Railroad  was  leased  from  November,  1871,  to 
December  31,  1970,  at  a  rental  of  8%  on  its  cost.  The  Dunkirk,  Allegheny  Valley  &  Pittsburgh 
Railroad,  the  Syracuse  Junction  Railroad,  the  Junction  Railroad  of  Buffalo,  the  Geneva  &  Lyons 
Railroad  and  others  were  leased  prior  to  1885. 

The  West  Shore  Railroad,  an  important  line  operating  nearly  500  miles  of  main  track,  was 
leased  to  the  New  York  Central  for  475  years  from  January  1,  1886,  at  a  rental  of  4%  yearly  on 
$50,000,000  first  mortgage  bonds.  This  road  was  the  reorganized  New  York,  West  Shore  &  Buffalo 
Railroad,  which  has  been  sold  under  foreclosure  in  November,  1885. 

In  1900,  for  the  purpose  of  gaining  terminal  rights  in  Boston,  the  New  York  Central  leased  the 
Boston  &  Albany  Railroad  for  99  years  at  a  rental  equivalent  to  the  interest  on  the  Albany's 
outstanding  bonds,  8%  on  its  outstanding  capital  stock,  and  $10,000  per  year  for  expenses  of 
organization. 

Adopting  a  plan  sunilar  to  that  of  The  New  York,  New  Haven  &  Hartford  Railroad,  the  New 
York  Central  has  secured  control  of  several  important  traction  companies  and  lighting  properties 
which  it  controls  through  holding  companies.  The  lighting  companies  are  held  by  the  Mohawk 
Valley  Company  and  the  traction  lines  by  the  New  York  State  Railways  Company.  On  December 
31,  1911,  the  New  York  Central  owned  $5,114,300  of  the  capital  stock  of  the  Mohawk  Valley  Com- 
pany, upon  which  dividends  of  6%  are  being  paid.  It  is  reported  that  the  New  York  Central  desires 
to  divest  itself  of  the  lighting  properties  held  by  the  Mohawk  Valley  Company,  and  that  an  eastern 
banking  syndicate  has  an  option  on  the  Central's  holdings  in  the  same. 

[  465  ] 


The  New  York  State  Railways  Company  was  incorporated  March  23,  1909,  to  take  over  the 
traction  companies  formerly  held  by  the  Mohawk  Valley  Company.  It  operates  over  400  miles  of 
street  railway  lines  adjacent  to  and  in  Rochester,  Syracuse,  Utica,  Schenectady,  Albany,  Troy 
and  Rome,  New  York.  On  December  31,  1911,  the  New  York  Central  owned  $13,604,900  of  the 
$23,814,900  of  the  capital  stock  outstanding.  In  July,  1910,  an  initial  quarterly  dividend  of  13^^% 
was  paid  on  the  common  stock. 

During  1910  the  operation  of  trains  by  electricity  was  extended  from  New  York  to  Hastings, 
on  the  Hudson  River  Division.  For  trains  equipped  with  the  multiple  unit  system,  the  extension  of 
electric  operation  on  the  Harlem  Division  from  Wakefield  to  North  ^Yhite  Plains  was  also  accom- 
plished. In  November,  1911,  the  operation  by  electricity  of  trains  on  the  Hudson  River  Division 
was  extended  to  Tarrytown,  New  York. 

In  order  to  procure  equipment  sufficient  to  meet  the  steadily  growing  requirements,  the  New 
York  Central  &  Hudson  River  Railroad  Company,  together  with  the  Lake  Shore  &  Michigan  South- 
ern Railway  Company  and  the  Michigan  Central  Railroad  Company,  the  Cleveland,  Cincinnati, 
Chicago  &  St.  Louis  Railway  Company,  and  the  Chicago,  Indiana  &  Southern  Railroad  Company 
became  a  party  to  equipment  trust  agreements  in  1907,  1910,  1912  and  1913  known  as  the  "New 
York  Central  Lines  Equipment  Trusts"  of  the  above-named  years.  The  agreement  provides  for  the 
issuance  of  equipment  trust  certificates  at  90%  of  the  total  cost  of  equipment  to  be  furnished  under 
the  term  of  each  of  the  agreements.  The  certificates  mature  serially  and  the  obligations  incurred 
are  divided  pro  rata  among  the  various  companies  which  are  parties  to  the  agreements. 

The  following  statement  shows  the  amount  of  equipment  and  certificates  outstanding,  also  the 
pro  rata  distribution  of  both,  under  the  terms  of  the  Equipment  Trusts  of  1907  and  1910: 

Equipment  Trust  of  1907 

Road  Equipment  Certificates 

Issued  Outstanding 

N.  Y.  C.  &H.  R.  R.  R 4,535  $11,904,902  $8,730,261 

L.  S.  &  M.  S.  Ry 4,350  6,708,393  4,919,488 

C.  I.  &  S.  R.  R." 3,560  3,779,976  2,771,983 

M.  C.  R.  R 3,720  3,906,382  2,864,680 

C.  C.  C.  &  St.  L.  Ry 1,754  3,700,347  2,713,588 

Totals 17,919        $30,000,000        $22,000,000 

Equipment  Trust  of  1910 

Road 

N.  Y,  C.  &  H.  R.  R.  R 

L.  S.  &M,  S.  Ry. 

C.  I.  &  S.  R.  R 

M.  C.  R.  R 

C.  C.  C.  &  St.  L.  Ry 

Totals 23,207 

The  Equipment  Trust  of  1912  provides  for  an  issue  of  $15,000,000  equipment  trust  certificates 
bearing  interest  at  4}/^%  per  annum,  being  90%  of  the  total  cost  of  equipment  furnished  under  its 
terms.  They  mature  $1,000,000  annually,  beginning  January  1,  1913.  The  cost  of  the  equipment 
assigned  to  the  New  York  Central  &  Hudson  River  Railroad  Company  was  approximately  $7,950,000, 
and  the  pro  rata  amount  of  the  certificates  representing  90%  of  the  costs  a]Ji)roximated  $7,155,000. 

[  466  ] 


Certificates 

Issued 

Outstanding 

4,157 

$6,509,466 

$6,075,502 

12,910 

13,771,066 

12,852,995 

1,033 

1,038,607 

1,529,367 

3,421 

5,086,474 

4,747,375 

1,686 

2,994,387 

2,794,761 

23,207 

$30,000,000 

$28,000,000 

Under  the  date  of  January  1,  1913,  a  new  issue  of  equipment  trust  certificates  was  issued 
bearing  interest  at  4}  9%.  The  total  authorized  amount  was  $24,000,000,  and  the  proceeds  were 
to  be  expended  for  the  cost  of  new  equipment  and  not  to  exceed  90%  of  the  same.  The  Equipment 
Trust  certificates  of  1913  mature  $830,000  annually,  beginning  January  1,  1914.  The  equipment 
purchased  will  be  distributed  pro  rata  among  the  companies  which  jointly  and  severally  covenant 
to  pay  the  principal  and  interest  of  the  same. 

In  February,  1911,  the  New  York  Central  sold  to  The  New  York,  New  Haven  &  Hartford 
Railroad  Company  one-half  of  its  holdings  in  the  preferred  stock  of  the  Rutland  Railroad  Com- 
pany, thereby  sharing  its  control  with  the  latter  in  that  property.  The  Public  Service  Commission 
of  the  State  of  New  York  approved  the  sale  of  the  other  half  of  the  New  York  Central's  holdings 
to  the  New  Haven,  but  in  December,  1912,  this  sale  had  not  gone  through. 

Effective  July  1,  1911,  a  ten-year  agreement  was  entered  into  by  the  New  York  Central  with 
The  New  York,  New  Haven  &  Hartford,  whereby  the  latter  receives  extensive  trackage  rights  over 
the  Boston  &  Albany  Railroad.  In  return  for  this  right  the  residts  of  operation  of  the  Boston  & 
Albany  will  be  shared  equally  by  both,  and  each  will  have  a  half  interest  in  the  net  results  of  the 
New  York  Central's  operations  under  the  lease  of  July  1,  1900. 

In  December,  1911,  the  New  York  Central  &  Hudson  River  Railroad  Company  applied  to  the 
Public  Service  Commission  of  New  York  for  permission  to  purchase  all  or  any  part  of  the  $10,000,000 
stock  of  the  New  York  &  Harlem  Railroad  at  not  over  $175  per  $50  share.  At  the  same  thne  it 
applied  for  permission  to  acquire  the  majority  holdings  of  The  New  York,  New  Haven  &  Hartford 
of  the  common  stock  in  the  New  York,  Ontario  &  Western  Railway  Company.  The  commission 
granted  permission  in  the  former  case;  and,  pending  minor  arrangements  between  the  parties  in 
question,  the  capital  stock  of  the  New  York  &  Harlem  Railroad  was  taken  over  during  the  1912 
fiscal  year.  The  conmiission  refused  the  company  the  right  to  take  over  the  holdings  of  the  "New 
Haven"  in  the  New  York,  Ontario  &  Western  Railway. 

Under  the  date  of  April  10,  1912,  the  New  York  Central  offered  the  stockliolders  of  the  Rome, 
Watertown  &  Ogdensburg  Railroad,  a  company  operated  by  it  under  lease,  $128  per  share  in 
cash  for  the  outstanding  capital  stock  of  that  company,  and  independent  of  this  offer,  to  give  these 
same  stockholders  the  right  to  subscribe  for  New  York  Central  Thirty-year  4%  Debentures  of 
January  1,  1912,  at  92. 

These  recent  attempts  of  the  New  York  Central  to  procure  control  of  the  cai^ital  stocks  of  the 
various  companies  which  it  leases  is  in  accordance  with  the  plan  of  consolidation  which  was  an- 
nounced late  in  1911.  This  plan  calls  for  the  merging  of  the  various  lines  comprising  the  New  York 
Central  System  into  one  company,  and  if,  in  the  near  future,  the  holders  of  the  New  York  Central- 
Lake  Shore  Collateral  3}^%  bonds,  secured  by  the  stock  of  the  Lake  Shore  &  Michigan  Southern 
Railway  Company,  consent,  it  is  expected  that  the  latter  company  will  be  merged  into  that  of  the 
New  York  Central. 


EQUITIES 

This  amalgamation  of  the  operating  companies  of  the  New  York  Central  System  brings  up  the 
cjuestion  of  the  equities  of  the  New  York  Central  proper  in  the  stocks  and  earnings  of  these  com- 
panies. That  these  equities  are  extremely  valuable  is  attested  by  the  fact  that  they  produced  in 
1911  over  $12,000,000  in  the  form  of  interest  on  funded  debt  owned  and  dividends  on  stocks  owned 
or  controlled.  This  was  upon  securities  held  in  the  treasury  of  the  company  having  a  book  value 
of  $167,085,772.  The  income  therefrom  was  equivalent  to  7.2%  on  the  investment,  and  5.3%  on  the 
Central's  outstanding  capital  stock. 

In  the  first  place,  the  New  York  Central  owns  over  90%  of  the  stock  of  the  Lake  Shore  &  Michi- 
gan Southern  Railway  Company,  which,  besides  being  an  important  operating  company,  is  also  a 
large  holding  company,  controlling  the  Cleveland,  Cincinnati,  Chicago  &  St.  Louis  Railway,  the 
Pittsburgh  &  Lake  Erie  Railroad  and  others,  also  valuable  equities  in  the  Reading  Company,  which, 

[467  ] 


in  turn,  controls  the  properties  of  the  Philadelphia  &  Reading  Coal  &  Iron  Company,  the  Reading 
Iron  Company,  the  Philadelphia  &  Reading  Railway  Company  and  the  Central  Railroad  of  New  Jer- 
sey, and  so  on.  Nearly  90%  of  the  stock  of  the  Michigan  Central  Railroad  is  owned  by  the  New 
York  Central.  The  latter  owns  the  stocks  of  the  Chicago,  Kalamazoo  &  Saginaw  Railway  and  the 
Detroit  &  Charlevoix  Railroad  Companies,  also  a  majority  of  the  stock  of  the  Canada  Southern 
Railroad  Company.  Besides  this,  the  Central  controls  the  Mohawk  Valley  Company  and  the  New 
York  State  Railways,  described  above,  and  there  are  substantial  equities  behind  both  of  these 
holding  companies. 

The  total  capital  stock  outstanding  of  the  New  York  Central,  the  Lake  Shore  &  Michigan 
Southern  and  its  subsidiaries,  including  the  Reading  Company,  the  Michigan  Central  Railroad 
Company  and  its  subsidiaries,  the  Mohawk  Valley  Company,  the  New  York  State  Railway,  the  Rut- 
land Railroad,  the  St.  Lawrence  &  Adirondack  Railway,  the  Toronto,  Hamilton  &  Buffalo  Rail- 
way, the  Indiana  Harbor  Belt  Railroad  and  the  American  Express  Company  amounted  to  $737,- 
643,800  on  December  31,  1911.  Of  this  amount,  $246,496,050  was  owned  by  or  in  the  interest  of  the 
New  York  Central.  This  was  33.42%  of  the  total.  The  total  undivided  surpluses  of  these  com- 
panies, as  shown  by  their  balance  sheets,  amounted  to  $131,297,050.  Figured  on  the  basis  of  the 
Central's  holdings  in  the  respective  properties,  its  proportion  in  the  above  undivided  surpluses  was 
$79,218,650.  This  latter  figure  does  not  include  equities  in  the  properties  of  the  holding  com- 
panies mentioned  above.  They  are  not  accurately  or  easily  obtainable,  but  if  they  could  be  included 
it  seems  probable  that  the  New  York  Central's  share  would  be  increased  to  well  over  $100,000,000. 


PROPERTY 

The  New  York  Central  &  Hudson  River  Railroad  Company  operated  during  the  fiscal  year 
ending  December  31,  1911,  including  lines  directly  owned  and  leased  lines,  a  total  mileage  of  3,790.23 
miles  as  follows: 

Miles  owned  in  fee 805.49 

Miles  of  proprietary  lines 3.06 

Miles  operated  under  lease 2,626.31 

Miles  operated  under  contract 81.70 

Miles  operated  under  trackage  arrangements 273.67 

Total  miles  operated 3,790.23 

During  the  year  5.2  miles  of  road  were  added,  due  to  the  construction  of  a  branch  line  on  the 
Rome,  Watertown  &  Ogdensburg  Railroad,  running  from  Sanfords  to  a  point  on  the  Cape  Vincent 
Branch,  forming  thereby  a  new  route  for  freight  traffic  between  Watertown  and  Sanfords,  New 
York. 

The  New  York  Central's  lines  directly  owned  extend  from  New  York  to  Syracuse,  via  Albany, 
and  from  Syracuse  connect  with  Buffalo  and  Niagara,  New  York,  over  two  parallel  lines.  The 
leased  and  subsidiary  roads  extend  from  New  York  to  Buffalo  with  branches  southerly  from  Geneva 
and  Dunkirk,  extending  into  Pennsylvania,  northerly  from  Niagara,  Rochester,  Syracuse  and  Rome, 
forming  a  network  over  northern  New  York,  and  the  lines  of  the  Boston  &  x\lbany  connecting  Albany 
and  Chatham  with  North  Adams,  Springfield,  Winchendon  and  Boston,  Massachusetts. 

The  main  lines  operated  are  almost  entirely  confined  to  New  York  State,  except  the  Boston  & 
Albany  line.  The  population  of  this  State  in  1890  was  approximately  6,000,000;  in  1900  it  had 
increased  to  over  7,250,000,  and  in  the  Census  of  1910  the  population  was  reported  to  be  9,110,000. 


[  468 


CAPITALIZATION 

With  2,626  of  its  3,790  miles  under  operation,  those  of  leased  properties,  during  the  past  fiscal 
year,  the  New  York  Central  paid  as  rentals,  mainly  in  the  form  of  interest  and  dividends  on  guar- 
anteed stocks  and  bonds,  $10,036,832  as  compared  witli  $9,162,019,  the  interest  on  its  own  funded 
obligations.  Capitalizing  this  rental  charge  at  5%,  over  $200,000,000  is  thereby  added  to  the  com- 
pany's nominal  capitalization.  Following  are  the  capital  figures  of  the  New  York  Central  as  of 
December  31,  1911: 

Capital  stock $222,729,300 

Funded  debt 299,870,608 

Nominal  capital $522,599,908 

Rentals  capitalized  at  5%      200,736,640 

Gross  capitalization $723,336,548 

Securities  owned 138,254,500 


Net  capitalization $585,082,048 

Net  capital  per  mile  operated      $154,374 

Average  miles  operated 3,790.23 

Net  income  to  net  capital .  7.8% 

Fixed  charges  to  net  income 66.7% 

Margin  of  safety 33.3% 

The  amount  of  capital  stock  outstanding  per  mile  of  road  owned  (805)  was  $276,514.  The 
amount  of  bonds  outstanding  per  mile  of  road  owned,  excluding  the  Lake  Shore  and  Michigan 
Central  Collaterals,  and  the  Spuyten  Duyvil  &  Port  Morris  First  Mortgage  Bonds,  was  $225,845. 

Since  1900  there  have  been  various  increases  in  the  company's  capital  stock.  In  April,  1900, 
$15,000,000  of  stock  was  issued  to  stockholders  at  par  to  provide  for  new  equipment.  In  1902  the 
authorized  stock  was  increased  from  $115,000,000  to  $150,000,000,  and  $16,912,900  of  stock  was 
issued  to  stockholders  at  $125  per  share,  the  proceeds  to  be  used  for  improvements.  The  stock- 
holders were  given  an  opportunity  to  subscribe  for  $16,947,800  stock  at  par  in  March,  1906.  One 
month  later  the  authorized  amount  of  stock  was  increased  to  $250,000,000,  and  $28,984,900  addi- 
tional stock  was  issued  to  be  used  for  improvements  and  betterments  to  the  New  York  Terminal. 
The  last  increase  of  importance  was  in  January,  1910,  when  $44,097,300  stock  was  issued  at  par  to 
stockliolders  of  record,  one  half  of  the  proceeds  of  the  sale  of  which  was  used  to  refund  maturing 
notes,  and  the  other  half  for  extensions  and  improvements. 

The  increase  in  the  company's  nominal  capitalization  since  1900  can  best  be  shown  by  the  fol- 
lowing table.  It  will  be  seen  that  whereas  the  company's  capitalization  has  increased  73%,  gross 
earnings,  on  the  other  hand,  have  increased  over  90%. 

Year  Capital  stock  Funded  debt  Total  capital  Gross  earnings 

1900 $115,000,000         $185,758,021         $300,758,021         $54,562,952 

1911 222,729,300  299,870,608  522,599,908         103,954,862 


Increase $221,841,887         $49,391,910 

Per  cent  increase 73%  90% 

The  company's  net  capital  per  mile  of  road  operated  was  $154,374,  as  compared  with  $123,072 
of  the  Pennsylvania,  and  $153,512  of  the  Lackawanna.  Upon  its  net  capital,  the  New  York  Central 
earned  7.8%  during  the  past  fiscal  year  (1911)  as  compared  with  12.9%  earned  by  the  Pennsylvania 

[  469  ] 


and  15.4%  by  the  Lackawanna.  It  would  seem,  therefore,  that  the  Central  was  rather  more  highly 
capitalized  than  the  other  roads  named,  but  it  operates  through  the  densest  territory  in  the  entire 
country  and  has  large  equities  in  its  subsidiaries. 

FLxed  charges  consumed  66.7%  of  the  company's  total  net  income.  The  total  net  income  of 
the  New  York  Central  could  decline  33.3%  before  its  interest,  rentals  and  taxes  would  be  impaired. 
This  margin  of  safety  for  New  York  Central  issues,  however,  depends  largely  upon  the  produc- 
tivity, in  the  form  of  interest  and  dividends,  of  the  stocks  and  bonds  which  the  company  owns. 
Were  the  New  York  Central  dependent  upon  its  net  operating  earnings  alone  to  meet  its  fixed 
charges,  undoubtedly  its  credit  would  be  much  lower  than  it  is.  In  point  of  fact,  during  1911, 
the  company  could  not  have  shown  a  surplus  over  charges  without  the  aid  of  its  "other  income." 

The  New  York  Central's  margin  of  safety  of  33%  compares  with  the  Pennsylvania's  margin  of 
62%  and  that  of  the  Lackawanna,  61%. 


CHARACTER   OF  TRAFFIC 

But  58%  of  the  company's  business  is  freight.  This  is  so  generally  well  distributeci  that  it  is 
doubtful  if  a  depression  in  any  one  industry  could  seriously  affect  its  traffic  or  resulting  earnings. 
The  following  table  shows  that,  of  its  freight,  the  largest  single  items  are  the  products  of  mines, 
46%,  while  manufactures  and  miscellaneous  commodities  represent  about  30%  of  the  company's 
freight  business,  the  latter  returning  a  higher  rate: 

Products  of  1911  1910  1909  1908  1907 

Agriculture    ....  12.89%  11.74%,  12.07%  13.84%  12.73% 

Animals 4.81  4.49  4.92  5.90  4.81 

Mines 46.31  47.08  46.54  46.55  46.41 

Forests 6.24  6.43  6.57  6.45  6.47 

Manufactures    .    .    .  27.41  27.89  28.16  22.78  21.87 

Miscellaneous    .    .    .  2.34  2.39  1.74  4.48  7.71 

Total 100.00%        100.00%        100.00%        100.00%        100.00% 

The  number  of  tons  of  revenue  freight  moved  in  1907  was  47,422,174,  in  1908  but  39,105,955, 
in  1909  44,171,956,  in  1910  47,066,839,  and  during  the  fiscal  year  of  1911  revenue  freight  car- 
ried amounted  to  48,250,535  tons,  an  increase  of  1,183,696  tons  over  1910,  and  828,361  tons  over 
1907,  which  had  the  highest  previous  record  as  to  tonnage. 

Following  are  some  of  the  more  salient  trafiic  statistics  of  the  New  York  Central  for  the  past 
five  years: 

Year  Freight  Train  Freight  Average  rate 

density  load  eaming.s  per  ton 

tons  per  mile 

1907 2,475,535  419  $59,406,446  $.0062 

1908 2,059,531  384  51,200,547  .0064 

1909 2,291,148  404  54,449,281  .0063 

1910 2,460,620  417  58,411,234  .0063 

1911 2,558,896  430  61,1.33,310  .0063 

Freight  earnings  in  1908  declined  over  $8,000,000,  due  to  a  decreased  tonnage  in  nearly  all  the 
classified  commodities,  the  greatest  reduction  being  in  grain  and  bituminous  coal.  The  latter  was 
due  to  the  suspension  of  labor  in  the  Morris  Run  District  during  eight  months  of  the  year.  The 
average  rate  per  ton  per  mile  showed  a  slight  improvement,  due  largely  to  the  fact  that  the  loss  in 
tonnage  of  merchandise  and  other  freight  of  the  higher  classes  was  not  proportionately  as  great  as 

[  470  ] 


in  the  tonnaf^e  of  coiinnodities  of  lower  grade.  Since  1908  substantial  increases  in  freight  earnings 
have  been  reported. 

During  1911  freight  earnings  reached  the  highest  point  in  the  company's  history,  being  over 
$1,700,000  greater  than  the  previous  high  record  of  1907. 

Passenger  traffic  is  heavy  and  yields  over  30%  of  gross  income.  It  will  be  noted  in  the  following 
table  that,  with  the  exception  of  1908,  the  company's  passenger  density  and  earnings  have  shown 
satisfactory  increases.  The  decline  in  passenger  density  in  1908  was  due  primarily  to  the  fact  that 
the  immigrant  business  was  practically  suspended  during  that  year.  This  caused  a  decline  in  the 
average  number  of  passengers  per  train,  and  an  increase  in  the  average  rate  owing  to  the  reduction 
of  this  class  of  transportation. 

Year  Passenger       Number  of  PassenRor  Average  rate 

density  passengers  earnings  per  passenger 

per  train  per  mile 

1907   481,051  70  $29,837,859  $.0172 

1908   437,713  67  27,824,491  .0176 

1909   474,773  66  29,001,911  .0175 

1910   506,301  66  30,992,856  .0175 

1911    513,532  68  31,759,238  .0177 


EARNINGS 

The  New  York  Central's  gross  and  net  earnings  for  the  past  five  years  are  as  follows: 


Year 

Average  miles 

Gross 

Per  mile 

Net 

Per  mile 

Operating 

operated 

earnmgs 

earnings 

ratio 

1907    . 

.      3,782 

$98,369,059 

$26,009 

$22,565,725 

$5,967 

77.06% 

1908    . 

.    3,781 

88,849,367 

23,498 

23,430,282 

6,197 

73.63 

1909    . 

.     3,782 

93,171,860 

24,637 

28,578,034 

7,559 

69.33 

1910    . 

.    3,785 

99,908,478 

26,396 

25,829,391 

6,821 

74.15 

1911    . 

.     3,790 

103,954,862 

27,427 

29,482,284 

7,778 

71.63 

The  decline  in  earnings  in  1908  has  been  referretl  to  above.  Together  with  this  decline  in  gross 
revenues  came  a  rigid  curtailment  of  operating  expenses,  especially  in  the  costs  of  conducting  trans- 
portation, which  were  cut  over  $7,000,000.  This  enabled  the  company  to  report  a  slightly  higher 
net  than  in  1907,  and  reduced  the  operating  ratio  from  over  77%  to  73.63%.  A  further  reduction  of 
transportation  costs  in  1909,  together  with  a  substantial  increase  in  gross  revenue,  brought  about  a 
still  lower  operating  ratio,  and  the  company  reported  a  new  record  for  net  earnings. 

During  the  fiscal  year  of  1911  the  New  York  Central's  gross  revenue  passed  the  $100,000,000 
mark,  while  net  earnings  were  nearly  $29,500,000,  both  being  high  records  for  the  company.  The 
gross  earnings  per  mile  and  the  operating  ratios  of  the  New  York  Central,  the  Pennsylvania,  and  the 
Lackawanna,  for  1911,  are  as  follows: 

Property  Gross  earnings      Operating         Maintenance     Transportation 

per  mile  ratio  to  gross  to  gross 

New  York  Central $27,427  71.6%  29.4%  42.2% 

Pennsylvania 39,195  71.9  31.1  40.8 

Lackawanna 44,890  61.0  27.1  33.9 

The  earnings  of  the  New  York  Central  System,  including  the  New  York  Central  proper,  the 
Mohawk  Valley  Company,  the  New  York  State  Railways,  the  Rutland  Railroad,  the  Lake  Shore 
&  Michigan  Southern  Railway  and  its  controlled  companies,  the  Michigan  Central  Railroad,  and 

[471  ] 


the  other  principal  controlled  companies  in  the  system,  have  been   compiled  from  their  income 
sheets  for  the  fiscal  year  ending  December  31,  1911,  as  follows: 

Gross  earnings      $331,690,800 

Operating  expenses  (including  taxes) 248,219,700 

Net  earnings $83,471,100 

Other  income 34,973,000 

Total  net  income $118,444,100 

Charges      $67,536,319 

Dividends 37,342,081 

Surplus  for  year  after  all  deductions $13,565,700 


MAINTENANCE 

The  New  York  Central  &  Hudson  River  Railroad  Company  has  spent  the  following  amounts 
for  maintenance  of  way  and  equipment  since  1907: 

Year  Maintenance  Total  Per 

Way  Equipment  maintenance  mile 

1907      $12,462,046        $14,823,630        $27,285,676  $7,214 

1908  10,768,284  13,420,282  24,188,566  6,397 

1909  11,494,023  15,421,648  26,915,671  7,116 

1910  14,060,177  16,936,253  30,996,430  8,193 

1911  13,723,709  16,911,146  30,634,855  8,083 

During  the  past  five  years  the  company  has  spent  from  its  income  over  $140,000,000  for  main- 
tenance of  way  and  equipment.  This  is  an  average  of  $28,000,000  a  year,  or  an  average  of  $7,400 
per  mile. 

Following  is  a  comparison  of  the  traffic  density  of  the  Central,  Pennsylvania  and  Lackawanna, 
together  with  the  total  amounts  spent  for  maintenance  per  mile.  The  figures  are  altogether  favor- 
able to  the  New  York  Central. 

Five-year  average  Traffic  Maintenance 

density  per  mile 

New  York  Central 2,851,820  $7,400 

Pennsylvania 5,316,000  12,355 

Lackawanna 4,848,890  10,950 


[  472 


ADDITIONS   AND   BETTERMENTS 

Biised  on  the  annual  reports  of  the  company,  the  following  table  has  been  prepared  showing 
the  amounts  which  have  been  spent  for  additions  and  betterments  by  the  company  and  charged  to 
Cost  of  Property  and  Equipment  Accounts: 

Year  Additions  and  betterments  Total 

Main  line  Leased  roads 

1907 $6,431,915  $9,014,975  $15,440,890 

1908 5,603,731  7,644,337  13,248,068 

1909 6,216,748  2,389,382  8,606,130 

1910 26,259,284*  8,492,007  34,751,291 

1911 6,568,419  7,804,014  14,372,433 


Total $86,424,812 

Special  Improvement  Fund      2,351,231 

Grand  total $88,776,043 

In  accordance  with  the  rulings  of  the  Interstate  Commerce  Commission,  the  company  item- 
izes on  its  balance  sheet  the  amounts  of  income  spent  since  June  30,  1907,  for  additions  to  property. 
On  December  31,  1911,  the  company  had  spent  thus  $4,857,367. 


NEW  YORK  TERMINAL 

Any  analysis  of  the  New  York  Central  would  be  incomplete  without  a  consideration  of  the  large 
sums  which  the  company  has  spent  upon  its  New  York  Terminal.  On  January  26,  1912,  the  main 
portions  of  the  "Grand  Central  Terminal,"  as  it  is  known,  were  opened  to  the  public.  This  station 
with  its  approaches  has  taken  several  years  to  complete  and  has  already  cost  approximately 
$90,000,000.    This  expense  has  been  carried  along  with  no  income  return. 

The  new  terminal  as  planned  will  be  the  most  costly  railroad  station  in  the  world.  It  is  as  con- 
venient as  it  possibly  can  be  made  and  is  centrally  located.  It  has  been  equipped  to  handle  traffic 
by  electric  power  through  a  moderate  terminal  plant  of  ample  capacity.  Built  on  the  continental 
plan  with  loadmg  and  unloading  platforms  on  different  levels  and  with  the  construction  of  loop 
tracks  permitting  the  arrival  and  departure  of  trains  without  crossing  each  other's  paths,  the  ter- 
minal will  have  a  maximum  daily  capacity  of  250,000  passengers  and  over  1,400  trains. 


DIVIDENDS 

The  road,  since  its  existence  as  a  consolidated  property,  has  never  defaulted  a  bond,  nor 
a  year  without  a  dividend.    This  is  indeed  a  most  satisfactory  record,  covering  a  period,  as  it  does, 
in  which  most  severe  business  depressions  have  prevailed. 

The  New  York  Central's  record  since  1869  is  as  follows: 


Year 

Rate 

Year 

Rate 

Year 

Rate 

Year 

Rate 

1869-84. 

QO/ 

1891 

.   41^% 

1900     . 

.  m% 

1908 

.   5% 

1885 

.    5 

1892-4    . 

.   5 

1901-5 . 

.   5 

1909 

.   5 

1886-89. 

.    4 

1895 

.   41^ 

1906     . 

.    5M 

1910 

.   6 

1890 

.    3 

1896-99 

.   4 

1907     . 

.   6 

1911-12. 

.   5 

Including  the  proceeds  of  the  Equipment  Trust  Certificates  of  1910. 

[  473  ] 


The  company's  Profit  and  Loss  (free  surplus)  as  reported  on  its  balance  sheet  of  December  31, 
1911,  was  $13,448,668,  and,  together  with  the  appropriated  surplus  of  $4,970,036,  is  equivalent 
to  8%  on  the  company's  outstanding  capital  stock. 

STATISTICS 

Following  are  the  capitalization,  earnings,  and  traffic  statistics  of  the  New  York  Central  & 
Hudson  River  Railroad,  based  on  the  average  miles  operated,  for  the  year  1900,  and  for  the  years 
1905  to  1911  inclusive: 


[  474  ] 


NEW  YORK   CENTRAL   &   HUDSON   RIVER   RAILROAD 


Fiscal 

Capital 

Funded 

Rentals 

Gross 

Owned  by 

Net 

Average 

Extra 

year 

slock 

debt 

at  5% 

capital 

company 

capital 

miles 
operated 

mam 
track 

1900 

$40,823 

$65,942 

$49,266 

$156,031 

$45,273 

$110,758 

2.817 

1,551 

1905 

35,042 

61,093 

50,399 

146,524 

38.041 

108,483 

3,774 

2,011 

1906 

47,088 

60,931 

50,217 

158,236 

40.806 

117,430 

3.784 

2,037 

1907 

47,232 

67,474 

50,936 

105,042 

42,204 

123,438 

3,782 

2,152 

1908 

47,244 

71,030 

51,351 

169,625 

40,097 

128,928 

3.781 

2,201 

1909 

47,232 

72,730 

52,583 

172,545 

35,748 

136,797 

3,782 

2,255 

1910 

58,845 

71,624 

53,148 

183.017 

37.038 

140,579 

3.785 

2,311 

1911 

58,707 

79,121 

52,904 

190,852 

30,478 

154.374 

3,790 

2.335 

Fiscal 

Gross 

Maintenance 

Transportation 

Net 

Other 

Total 

Fixed 

Surplus  avail- 

year 

operatmg 

and  general 

operating 

income 

net 

charges 

able  for 

revenue 

Way 

Equipment 

expense 

revenue 

nicome 

dividends 

1900 

$19,308 

$2,552 

$1,987 

$7,548 

$7,281 

$1,074 

$8,955 

$6,010 

$2,939 

1905 

22,812 

2,645 

3,507 

9,730 

0,924 

1,728 

8,052 

5.893 

2,758 

1906 

24,336 

2,832 

3,850 

10,482 

7,172 

2,035 

9,207 

5,904 

3,242 

1907 

26,009 

3,295 

3,919 

12,828 

5,907 

3,034 

9.001 

0,070 

2,931 

1908 

23.498 

2,848 

3,549 

10,904 

0,197 

2,742 

8,939 

0,539 

2,400 

1909 

24,637 

3,039 

4,077 

9,902 

7.559 

3.000 

10,025 

7,001 

3,024 

1910 

20,390 

3,714 

4.479 

11.382 

0.821 

4,080 

10,901 

7,130 

3,771 

1911 

27,427 

3,621 

4,462 

11.500 

7.778 

4,307 

12,147 

8,109 

4,030 

Fiscal 
year 


Divi- 
dends 


Other        Surplu 
charges 
to  in- 


Operating 
expenses 
to  gross 
earnings 


Total 
mainte- 


Conducting 
transpor- 
tation to 


Fixed  Gross 

charges  earnings 

to  gross  to  gross 

earnings  capital 


_  Net 
income 
to  net 
capital 


Per  cent 

earned  on 

capital 

stock 


$1,752 
1,752 
2,070 
2,833 
2,362 
2,362 
3,531 
2,938 


$406 
340 


$1,187 
601 
827 
98 
38 
1,202 

1,100 


62.41%  23.3%  39.1%  31.1%  12.4% 


69.65 
70.53 
77.00 
73.03 
09.33 
74.15 
71.63 


27.4 
27.8 
27.2 
28.8 
31.0 
29.4 


42.7 
43.1 
49.3 
40.4 
40.5 
43.1 
42.2 


25.8 
24.5 
23.3 
27.8 
28.4 
27.0 
29.6 


15.6 
15.4 
15.6 
13.7 
14.1 
14.2 
14.3 


8.1^ 
8.0 
7.8 
7.3 
6.9 
7.7 
7.4 
7.8 


Fiscal 

Train 

Maintenance 

Conducting 

Train 

Rate  per  mile 

Freight 

Train 

Freight 

Passenger, 

year 

mile 

per  revenue 

transportation 

mile 

density 

load 

to  all 

freight 

earnmgs 
(gross) 

trai 

n  mile 

earnings 

Per 

Per 

revenue 

traffic 

and 

train  mile 

(net) 

passenger 

ton 

tons 

company 

Way 

Equipment 

cars 

1900 

$1.61 

$.213 

$.166 

$.629 

$.60 

$.0182 

$.0056 

2.171,062 

360 

63% 

60,707 

1905 

1.93 

.224 

.297 

.825 

.59 

.0173 

.0001 

2,231.435 

399 

59 

70,671 

1906 

2.03 

.236 

.321 

.876 

.60 

.0171 

.0004 

2.226.839 

403 

60 

74,533 

1907 

2.06 

.262 

.310 

1.019 

.47 

.0172 

.0002 

2,475,535 

419 

60 

72,870 

1908 

1.99 

.242 

.301 

.926 

.52 

.0176 

.0004 

2,059,531 

384 

57 

68,674 

1909 

2.00 

.246 

.331 

.808 

.61 

.0174 

.0003 

2,291,148 

404 

59 

07,893 

1910 

2.04 

.287 

.346 

.881 

.53 

.0175 

.0003 

2,460,620 

417 

59 

70,990 

1911 

2.13 

.281 

.346 

.897 

.60 

.0176 

.0003 

2,558,896 

430 

58 

67,830 

[475] 


BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  New  York  Central 

&  Hudson  River  Railroad  System,  together  with  the  bases  on  which 

they  have  sold  during  the  decade  ending  December  31,  1912: 


NEW  YORK   CENTRAL   &  HUDSON   RIVER  RAILROAD 


Mortgage  Gold  sJ^s 

Dated  June  1,  1897  Maturing  July  1,  1997 

Interest  payable  January  1  and  July  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000. 


Authorized  $100,000,000 


Outstanding  $94,000,000 
Per  mile  .    .  116,770 


Provisions  of 
issue: 


Security : 


Of  the  $100,000,000  authorized,  $94,000,000  are  outstanding  as  above,  and  the  balance, 
$11,000,000,  is  reserved  for  extensions,  terminals,  stocks  or  bonds  of  other  companies,  etc., 
at  $1,000,000  per  year. 

The  above  bonds  are  secured  by  a  direct  mortgage  on  805.49  miles  of  the  company's  road, 
together  with  all  the  branches,  extensions,  terminals,  rolling  stock  and  other  property  and 
franchises  now  owned  or  hereafter  acquired,  but  not  including  any  stocks  or  bonds  except 
those  acquired  with  the  proceeds  hereof,  pertaining  to  the  above  mileage.  They  are  secured 
by  a  first  collateral  lien  on  three-quarters  of  the  capital  stock  of  the  Hudson  River  Bridge 
Company,  which  owns  two  bridges  in  Albany,  also  leasehold  interests  in  the  Troy  &  Green- 
bush  Railroad,  Spuyten  Duyvil  &  Port  Morris  Railroad,  West  Shore  Railroad,  Rome,  Water- 
town  &  Ogdensburg  Railway,  New  York  &  Harlem  Railroad,  Mohawk  &  Malone  Railway, 
Carthage  &  Adirondack  Railway,  New  York  &  Putnam  Railroad,  Gouverneur  &  Oswegatchie 
Railroad  and  the  Beech  Creek  Railroad. 

Under  the  indenture  the  company  agrees  not  to  extend  any  of  the  existing  bonds  at  maturity, 
and  orders  the  trustee  to  release  upon  request,  without  restriction  and  limitation,  (1)  any  real 
estate  not  necessary  for  the  operation  of  the  road  whose  value  shall  not  exceed  $1,000,000, 
(2)  any  real  estate  for  which  bonds  secured  hereby  of  any  equal  value,  shall  have  been  sur- 
rendered and  cancelled,  (3)  certain  other  lots  in  New  York  City. 


Trustee: 


Central  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  3.20  to  3.35  basis 


1903 

3.35 

3.70 

1904 

3.45 

3.62 

1905 

3.45 

3.55 

1906 

3.55 

3.80 

1907 

3.70 

4.15 

1908 

3.65 

4.00 

1909 

3.70 

3.95 

1910 

3.80 

4.00 

1911 

3.90 

4.10 

1912 

3.95 

4.15 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  478  ] 


NEW  YORK   CENTRAL   &  HUDSON  RIVER  RAILROAD 
Lake  Shore  Collateral  Trust  31^5 

Dated  February  4,  1898  Maturing  February  1,  1998 

Interest  payable  February  1  and  August  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000. 


Authorized  $100,000,000 


Outstanding  $90,578,400 


Provisions  of      The  unissued  bonds  may  be  issued  at  the  rate  of  $200  in  bonds  for  each  additional  $100  of 
issue:  Lake  Shore  &  Michigan  Southern  Railway  Company  stock  deposited  hereunder. 

Security:  The  above  bonds  are  a  direct  obligation  of  the  New  York  Central  &  Hudson  River  Railroad 

Company,  and  are  secured  by  a  deposit  with  the  trustee  of  $45,289,200  capital  stock  of  the 
Lake  Shore  &  Michigan  Southern  Railway  Company  at  the  rate  of  $500  in  stock  for  every 
$1,000  bond. 

In  the  indenture  tlie  Railroad  Company  will  not  hereafter  make  any  mortgage  upon  its  rail- 
road without  also  thereby  including  therein,  in  favor  of  every  bond  secured  by  this  indenture, 
a  lien  prior  and  superior  to  the  lien  in  favor  of  any  other  bond  or  debt  secured  by  any  such 
mortgage,  except  that  any  such  mortgage  may  secure  and  provide  for  other  bonds  for  the 
sum  of  not  exceeding  $22,000,000  equally  with  all  of  the  bonds  hereby  secured. 

All  dividends  on  the  deposited  stock  shall  be  paid  to  the  trustee.  The  Railroad  Company, 
unless  in  default,  shall  have  the  right  to  vote  upon  all  the  shares  jiledged  with  the  trustee. 
Under  no  conditions  shall  the  company  or  the  trustee  permit  any  increase  in  the  capital  stock 
of  the  Lake  Shore  &  Michigan  Southern  Railway  Company. 

The  pledge  of  the  above  shares  shall  not  prevent  the  consolidation  or  merger  of  the  Lake 
Shore  &  Michigan  Southern  Railway  Company  with,  or  the  sale,  conveyance,  or  transfer  of 
its  property  to  the  Railroad  Company  upon  such  terms  as  shall  be  approved  by  the  holders 
of  75%  in  amount  of  the  bonds  secured  by  this  indenture. 


Trustee: 


The  Guaranty  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  3.57  to  .3.80  basi.>^ 


1903 

3.70 

4.05 

1904 

3.75 

4.10 

1905 

3.75 

3.95 

1906 

3.75 

4.05 

1907 

3.95 

4.80 

1908 

4.10 

4.70 

1909 

4.10 

4.50 

1910 

4.25 

4.40 

1911 

4.35 

4.70 

1912 

4.15 

4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


[479  ] 


NEW  YORK  CENTRAL   &  HUDSON   RIVER  RAILROAD 
Michigan  Central  Collateral  Trust  33^5 

Dated  April  13,  1898  Maturing  February  1,  1998 

Interest  payable  February  1  and  August  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000. 

Authorized  $"21,550,000  Outstanding  $19,336,445 

Provisions  of      The  unissued  bonds  may  be  issued  at  the  rate  of  $115  in  bonds  for  each  additional  $100  of 
issue:  Michigan  Central  Railroad  Company  stock  deposited  hereunder. 

Security:  The  above  bonds  are  a  direct  obligation  of  the  New  York  Central  &  Hudson  River  Railroad 

Companj%  and  are  secured  by  deposit  with  the  trustee  of  $16,819,250  of  the  capital  stock  of 
the  Michigan  Central  Railroad  Company,  at  the  rate  of  $100  in  INIichigan  Central  stuck  for 
each  $115  of  these  bonds. 

For  every  200  shares  of  the  par  value  of  $100  deposited,  the  trustee  shall  issue  $23,000  of  bonds. 

The  indenture  of  this  mortgage  makes  the  same  provisions  as  the  indenture  of  the  Lake  Shore 
Collateral  S}is  of  1998,  substituting  for  the  $22,000,000  additional  bonds  mentioned 
$100,000,000  in  each  case. 

Trustee:  The  Guaranty  Trust  Company,  New  York. 


These  bonds  so 

Id  in  1902  on 

a  3.57  i 

to  3.80  basis 

1903 

3.75 

4.10 

1904 

3.85 

4.10 

1905 

3.85 

3.95 

1906 

3.85 

4.05 

1907 

4.05 

4.95 

1908 

4.05 

4.70 

1909 

4.15 

4.50 

1910 

4.30 

4.50 

1911 

4.40 

4.70 

1912 

4.25 

4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  hi  New  Hamp.shire  and  Rhode  Island. 


NEW  YORK   CENTRAL   &  HUDSON   RIVER   RAILROAD 
Spuyten  Duyvil  &  Port  Morris  Railroad  First  Mortgage  s^/^s 

Dated  June  1,  1909  Maturing  June  1,  1959 

Interest  paj'able  June  1  and  December  1  at  the  Grand  Central  Station,  New  Yorlv. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000,  and  multiples  of  $50,000. 

Coupon  and  registered  bonds  are  interchangeable. 

Authorized  $20,000,000  Outstanding  $"2,500,000 

Provisions  of      Of  the  $20,000,000   authorized,   $2,500,000   are  outstanding,   as   above,   and   the  balance, 
issire:  $17,500,000,  is  reserved  for  extensions,  iniprovements,  equipment,  etc.,  under  the  direction 

of  the  Public  Service  Commission. 

Security :  Tiiese  bonds  are  secured  by  a  first  mortgage  on  the  railroad  of  the  Spuyten  Duyvil  &  Port 

Morris  Railroad  Company,  extending  from  its  point  of  connection  with  the  New  York  Cen- 
tral &  Hudson  River  Railroad  in  the  Borough  of  Bronx  to  its  pomt  of  connection  with  the 
New  York  &  Harlem  River  149th  Street,  in  the  same  Borough,  together  with  all  property 
now  owned  or  which  may  hereafter  be  acquired  for  use  in  connection  with  this  railroad,  and 
all  income  and  revenue,  secured  by  these  bonds. 

Trustee:  Central  Trust  Company,  New  York. 

The  Spuyten  Duyvil  &  Port  Morris  Railroad  Company  was  chartered  March  4,  1869,  and  opened 
for  traffic  April  7,  1872.  In  May,  1909,  the  company  leased  its  property  and  franchises  for  the 
term  of  its  cor]}orate  existence  to  the  New  York  Central  &  Hudson  River  Railroad  Company,  the 
lessee  agreeing  to  pay  as  rental  the  interest  on  all  the  bonds  and  obligations  of  the  lessor  and  8% 
on  its  capital  stock. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


NEW    YORK   CENTRAL   &   HUDSON   RIVER   RAILROAD 

Thirty-Year  Debenture  4s 

Dated  May  12,  1904  Maturing  May  1,  1934 

Interest  payable  May  1  and  November  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000,  $10,000  and  $50,000. 
Coupon  and  registered  bonds  interchangeable. 

Authorized  $50,000,000  Outstanding  $48,000,000 

Security :  These  bonds  are  a  direct  obligation  of  the  New  York  Central  &  Hudson  River  Railroad  Com- 

pany, but  are  not  secured  by  a  mortgage. 

In  the  indenture  the  company  agrees  to  make  no  new  mortgage  upon  its  railroad,  while  any 
of  these  debentures  are  outstanding,  without  thereby  including  those  outstanding. 
[481  ] 


Trustee: 


These  bonds  were  issued  to  provide  for  improvements,  additions  and  acquisitions,  including 
the  purchase  of  $5,000,000  preferred  stock  of  the  Geneva,  Corning  &  Southern  Railway. 

United  States  Trust  Company,  New  York. 


bonds  sold  in  1905  ( 

yn  a  3.85  to  4.00  basis 

1906 

3.87 

4.12 

1907 

4.05 

4.95 

1908 

4.25 

4.60 

1909 

4.22 

4.40 

1910 

4.30 

4.55 

1911 

.4.37 

4.55 

1912 

4.27 

4.70 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


NEW  YORK   CENTRAL   &  HUDSON   RIVER  RAILROAD 

Three-Year  4H%  Notes 

Dated  March  1,  1911  Maturing  March  1,  1914 

Interest  payable  March  1  and  September  1  at  New  York,  Paris  and  London. 

Coupon  notes  of  $1,000  and  $10,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  notes  of  $5,000,  $10,000,  $50,000  and  $100,000. 

Coupon  and  registered  notes  interchangeable. 

(The  notes  are  also  issued  in  Pounds  Sterling  and  French  Francs.) 


Authorized  $30,000,000 


Outstanding  $30,000,000 


Security: 


Registrar: 


The  above  notes  are  a  direct  obligation  of  the  New  York  Central  &  Hudson  River  Railroad 
('ompany,  but  are  not  secured  by  a  mortgage. 

The  proceeds  of  this  issue  were  used  to  provide  for  the  requirements  of  the  road  for  the  fiscal 
year  of  1911,  including  cost  of  construction  work  at  the  Grand  Central  Station  and  in  the 
electric  zone,  providing  extra  tracks  on  the  Hudson  Division  and  new  terminal  facilities 
at  Utica  and  Rochester,  N.  Y. 

Guaranty  Trust  Company,  New  York. 


These  notes  were  offered  in  1911  at  99%  and  interest.    In  July,  1912,  a  4.50  basis  was  bid. 


[  482  ] 


NEW  YORK   CENTRAL   &  HUDSON   RIVER  RAILROAD 
Three-Year  4,1^%  Notes 

Dated  May  1,  1912  Maturing  May  1,  1915 

Interest  payable  May  1  and  November  1  at  New  York  and  in  London. 

Principal  and  interest  payable  in  London  at  the  rate  of  $4.86J^  to  the  £. 
Coupon  notes  of  $1,000. 

Authorized  $30,000,000  Outstanding  $20,000,000 

Security:  The  above  notes  are  a  direct  obligation  of  the  New  York  Central  &  Hudson  River  Railroad 

Company,  but  are  not  secured  by  a  mortgage. 

The  above  issue  was  authorized  by  the  Public  Service  Commission  late  in  1911  to  provide 
for  the  acquisition  of  the  stock  of  the  New  York  &  Harlem  Railroad,  the  Rome,  Watertown 
&  Ogdensburg  Railroad,  and  the  Utica  &  Black  River  Railroad  Companies. 

Registrar:  Guaranty  Trust  Company,  New  York. 

These  notes  were  offered  in  May,  1912,  at  par. 


BEECH   CREEK  RAILROAD 

First  Morgtage  4s 

Dated  July  1,  1886  Maturing  July  1,  1936 

Interest  payable  January  1  and  July  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $1,000. 
Registered  bonds  exchangeable  for  coupon  bonds. 

Authorized  $5,000,000  Outstanding  $5,000,000 

Per  mile  .    .  30,300 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  Beech  Creek  Railroad  Company's 

lines  from  Jersey  Shore  to  MahaflFey  Junction,  Pa.,  112.34  miles,  and  on  52.35  miles  of  branches, 
totalling  164.69  miles;   also  on  lands,  buildings,  rolling  stock,  franchises  and  incomes. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  York 
Central  &  Hudson  River  Railroad  Company  by  endorsement. 

Trustee:  Knickerbocker  Trust  Company,  New  York. 

The  Beech  Creek  Railroad  was  chartered  June  29,  1886,  under  the  laws  of  Pennsylvania  as  a 
reorganization  of  the  Beech  Creek,  Clearfield  &  Southwestern  Railroad  Company.  It  was  leased 
to  tiie  New  York  Central  &  Hudson  River  Railroad  Company  for  999  years  from  October  1,  1890, 
at  a  rental  ecjuivalent  to  the  interest  on  the  company's  bonds,  dividends  of  4%  upon  the  capital  stock, 

[483  ] 


taxes  and  organization  costs  of  not  greater  than  $6,000  per  annum.    The  Beech  Creek  Railroad  was 
operated  independently,  however,  until  July  1,  1899. 

These  bonds  sold  in  1903  on  a  3.60  to  3.65  basis 


1904 

3.57 

3.77 

1905 

3.60 

3.70 

1906 

3.75 

3.88 

1907 

3.87 

4.10 

1908 

4.05 

1909 

4.00 

1910 

4.10 

4.20 

1911 

4.10 

1912 

4.05 

4.10 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


BEECH   CREEK  RAILROAD 

Second  Mortgage  5s 

Dated  July  1,  1892  Maturing  July  1,  1936 

Interest  payable  January  1  and  July  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  fully  registerable. 
Registered  bonds  of  $1,000. 


Authorized  $1,000,000 
Security : 


Outstanding  $1,000,000 
Per  mile  .    .  6,000 


The  above  bonds  are  secured  by  a  second  mortgage  on  the  company's  lines  from  Jersey  Shore 
to  Mahafley  Junction,  Pa.,  112.34  miles,  and  52.35  miles  of  branches,  covered  by  the  First 
Mortgage  4s  of  1936. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  York 
Central  &  Hudson  River  Railroad  Company,  by  endorsement. 

Trustee :  Union  Trust  Company,  New  York. 

These  bonds  were  quoted  in  1909  on  a  4.55  basis  (bid) 

1910  4.62 

1911  4.60 

1912  4.55 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


[  484  ] 


BEECH   CREEK  EXTENSION   RAILROAD 
First  Mortgage  aJ^s 

Dated  May  1,  1901  Maturing  April  1,  1951 

Interest  pajable  April  1  and  October  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

Authorized  $4,500,000  Outstanding  $3,500,000 

Per  mile  .    .  60,300 

By  the  terms  of  its  lease  to  the  New  York  Central  &  Hudson  River  Railroad  Company,  it  is 
agreed  that  the  issue  of  these  bonds  shall  be  limited  to  $3,500,000. 

Security:  The  above  bonds  are  a  first  mortgage  on  the  company's  line  from  Keating  to  Clearfield,  Pa., 

and  branches,  58.31  miles,  together  with  all  lands  and  rights  of  way,  buildings,  roUing  stock, 
franchises,  rents  and  profits  of  the  same,  both  present  and  future. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  York 
Central  &  Hudson  River  Railroad  Company  by  endorsement. 

Trustee:  Guaranty  Trust  Company,  New  York. 

Tlie  Beech  Creek  Extension  Railroad  Company  was  chartered  March  31,  1905,  under  the 
laws  of  Pennsylvania,  as  a  consolidation  of  a  road  of  the  same  name,  and  the  Curwensville  &  Bower 
Railroad,  the  Pittsburgh  &  Eastern  Railroad  and  the  Clearfield  &  Southern  Railroad  Companies. 
It  was  leased  to  the  New  York  Central  &  Hudson  River  Railroad  Company  for  999  years  from 
June  1,  1905,  the  lessee  guaranteeing  by  endorsement  both  principal  and  interest  on  the  company's 
bonds.  The  New  York  Central  &  Hudson  River  Railroad  Company  owns  the  entire  capital  stock 
of  the  Beech  Creek  Extension  Railroad  Company. 

These  bonds  were  quoted  in  1909  on  a  4.30  basis  (bid) 

1910  4.20 

1911  4..30 

1912  4.35 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode  Island. 


[  485  ] 


BEECH   CREEK  EXTENSION  RAILROAD 
Consolidated  Mortgage  4s 

Dated  May  1,  1905  Maturing  April  1,  1955 

Interest  payable  April  1  and  October  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $1,000. 
Coupon  and  registered  bonds  interchangeable. 


Authorized  $20,000,000 


Outstanding  $3,964,000 
Per  mile  .    .  31,200 


Provisions  of      Of  the  total  amount  authorized,  $3,964,000  are  outstanding,  as  above,  and  the  balance, 
issue:  $16,036,000,  is  reserved  for  extensions  and  construction  and  to  retire  $3,500,000  First  Mort- 

gage 3^8  of  1951. 


Security : 


Trustee: 


The  above  bonds  are  secured  by  a  direct  mortgage  on  127.46  miles  of  road  together  with 
all  lands,  buildings,  appurtenances,  rolling  stock  and  franchises,  now  owned  or  hereafter 
acquired,  and  all  incomes.  They  are  secured  by  a  first  mortgage  on  69.15  miles  of  road,  and 
by  a  second  mortgage  on  58.31  miles  of  road  covered  by  the  first  lien  of  the  First  Mortgage 
3Hs  of  1951. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  York 
Central  &  Hudson  River  Railroad  Company  by  endorsement. 

Guaranty  Trust  Company,  New  York. 


These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


CARTHAGE   &  ADIRONDACK   RAILWAY 
First  Mortgage  4s 

Dated  December  1,  1892  Maturing  December  1,  1981 

Interest  payable  June  1  and  December  1  at  the  (iraiid  Central  Station,  New  York. 


Coupons  bond  of  $1,000,  registerable  as  to  principal. 


Authorized  $1,600,000 


Outstanding  $1,100,000 
Per  mile  .    .  23,900 


Security : 


Trustee : 


The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Carthage  to 
Newton  Falls,  N.  Y.,  45.86  miles,  together  with  all  lands,  buildings,  equipment  and  fran- 
chises except  the  franchise  to  exist  as  a  corporation. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  York 
Central  &  Hudson  River  Railroad  Company  by  endorsement. 


Union  Trust  Company,  New  York. 


480  ] 


The  Carthage  &  Adirondack  Railway  Company  was  chartered  March  28,  1883,  under  the  laws 
of  New  York.  Its  line  was  opened  for  traffic  throughout  August  22,  1889.  Its  property  was  leased 
to  the  New  York  Central  &  Hudson  River  Railroad  Company  January  9,  1893,  for  the  term  of  the 
lessor's  existence,  the  lessee  agreeing  to  pay  as  rental  interest  on  the  above  bonds,  all  taxes  and  as- 
sessments, maintenance  expenses  and  costs  of  organization.  The  Carthage  &  Adirondack  Railway 
Company's  entire  capital  stock  is  owned  by  the  New  York  Central  &  Hudson  River  Railroad 
Company. 

These  bonds  sold  iu  1909  on  a  4.10  basis 

1910  4.50  (bid) 

1911  4.50  (bid) 
December,  1912  4.60 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


PINE   CREEK   RAILWAY 
First  Mortgage  Currency  6s 

Dated  Deceml)cr  9,  1882  .  Maturing  December  1,  1932 

Interest  payable  June  1  and  December  1  at  the  Grand  Central  Station,  New  York. 

Registered  bonds  of  $1,000. 

Authorized  $3,500,000  Outstanding  $3,500,000 

Per  mile  .    .  46,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  tlie  company's  main  and  brancli  lines, 

totalling  75.91  miles,  including  the  line  from  Stokesdale  to  Newberry  Junction,  Pa.,  together 
with  all  buildings,  equipment  and  corporate  franchises. 

These  bonds  were  ASSUMED  by  the  Geneva,  Corning  &  Southern  Railway  Company,  and 
are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST,  jointly  and  severally  by  the 
Philadelphia  &  Reading  Railroad  Company  and  the  New  York  Central  &  Hudson  River 
Railroad  Company. 

An  e(jual  amount  of  New  York  Central  &  Hudson  River  Railroad  Conii)any,  Geneva,  Corn- 
ing &  Southern  Railway  Refunding  4s  of  1959  have  been  reserved  to  retire  this  issue  at  maturity. 

The  Pine  Creek  Railway  was  organized  June  6,  1884,  as  the  successor  to  the  Jersey  Shore, 
Pine  Creek  &  Buffalo  Railway  Company.  It  was  the  latter  that  executed  the  above  mortgage. 
From  May  1,  1899,  it  was  leased  for  999  years  to  the  New  York  Central  &  Hudson  River  Railroad 
Company  at  an  annual  rental  of  $35,000  and  interest  on  its  outstanding  bonds. 

On  x\pril  1,  1909,  the  Pine  Creek  Railway  consolidated  with  the  Syracuse,  Geneva  &  Corning 
Railway  and  the  Fall  Brook  Railway  Companies,  forming  the  Geneva,  Corning  &  Southern  Railway 
Company,  which  assumed  the  above  bonds.  The  latter  road  was  leased  from  April  1,  1909,  for  the 
term  of  its  corporate  existence  to  the  New  York  Central  &  Hudson  River  Railroad  Company  at  a 
rental  sufficient  to  cover  operating  expenses,  interest  on  all  outstanding  obligations,  taxes,  and 
assessments,  4%  yearly  dividends  on  preferred  stock,  3'^%  on  common  stock  and  dividends  on  any 
second  preferred  stock  which  may  be  issued. 

[487  ] 


These  bonds  sold  in  1907  on  a  5.50  basis 

1909  3.90 

1910  4.55  (bid) 

1911  4.50  (bid) 
December,  1912  4.55  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hampshire. 


GOUVERNEUR   &   OSWEGATCHIE   RAILROAD 
First  Mortgage  5s 

Dated  June  1.  ISO'-i  Maturing  June  1,  1942 

Interest  payable  June  1  and  December  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  ,$1,000. 

Authorized  $300,000  Outstanding  $300,000 

Per  mile  .    .       23,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Gouverneur  to 

Edwards,  N.  Y.,  and  branches,  totalling  13.07  miles,  together  with  lands,  buildings,  leases, 
equipment  and  all  franchises. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  York 
Central  &  Hudson  River  Railroad  Company  by  endorsement. 

Trustee:  Union  Trust  Company,  New  York. 

The  Gouverneur  &  Oswegatchie  Railroad  Company  was  chartered  April  13,  1892,  under  the 
laws  of  New  York.  Its  line  was  open  for  traffic  July  18,  1893.  Under  an  agreement  dated  July  8, 
1892,  the  New  York  Central  &  Hudson  River  Railroad  Company,  which  owns  all  the  capital  stock 
of  the  Gouverneur  &  Oswegatchie  Railroad  Company,  took  over  the  operation  of  the  latter,  guaran- 
teeing its  bonds  as  to  principal  and  interest. 

These  bonds  were  quoted  in  1909  on  a  4.. 50  basis  (bid) 

1910  4.55 

1911  4..50 
December,  1912  4.50 

These  bonds  are  considered  a  legal  investment  for  sa\'ings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


[  488 


MOHAWK   &   MALONE   RAILWAY 
First  Mortgage  4s 

Dated  July  1,  1892  Maturing  September  1,  1901 

Interest  payable  March  1  and  September  1  at  the  Knickerbocker  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $2,500,000  Outstanding  $2,500,000 

Per  mile  .    .  13,700 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Herkimer  to 

Malone  Junction,  N.  Y.,  and  branches,  totalling  182.18  miles,  together  with  all  lands,  build- 
ings, equipment,  franchises  and  incomes. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  York 
Central  &  Hudson  River  Railroad  Company  by  endorsement  under  terms  of  lease. 

Equity:  The  above  bonds  are  prior  in  lien  to  $3,900,000  Consolidated  Mortgage  S^/^s  of  2002,  a  suffi- 

cient number  of  which  have  been  reserved  to  retire  this  issue  at  maturity. 

Trustee:  Knickerbocker  Trust  Company,  New  York. 

Tlie  Mohawk  &  Malone  Railway  Company  was  chartered  June  23,  1892,  under  the  laws  of  the 
State  of  New  York  as  a  consolidation  of  the  Herkimer,  Newport  &  Poland  Railway,  the  Herkimer, 
Newport  &  Poland  Extension  Railway,  and  the  St.  Lawrence  &  Adirondack  Railroad  Companies. 
The  road  was  completed  throughout  in  No\'ember,  1892,  and  on  May  1,  1893,  was  leased  to  the  New 
York  Central  &  Hudson  River  Railroad  Company. 

A  second  lease  was  arranged,  dated  April  17,  1902,  to  rim  diu'ing  the  corporate  existence  of  the 
company  at  an  annual  rental  equivalent  to  the  interest  on  the  company's  bonds,  a  dividend  of  4% 
on  the  company's  capital  stock  and  organization  expenses. 


These  bonds  sold  in  1905  on 

a  3.85  basis 

1906 

3.87 

1907 

4.10 

1908 

4.10 

1909 

4.00 

1910 

4.00  to  4.05 

1911 

4.05 

1912 

4.05 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  489 


MOHAWK   &   MALONE  RAILWAY 
Consolidated  Mortgage  i^is 

Dated  March  1,  1902  Maturing  March  1,  2002 

Interest  payable  Marcli  1  and  September  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

Authorized  $10,000,000  Outstanding  $.S,900,000 

Per  mile  .    .  21,400 

Provisions  of      Of  tlie  total  amount  authorized,  $3,900,000  are  outstanding  as  above,  $2,500,000  have  been 
issue:  reserved  to  retire  the  Mohawk  &  Malone  First  4s  of  1991,  and  the  balance,  $3,600,000,  has 

been  reserved  to  complete,  furnish  and  operate  the  railroad  at  the  company's  request,  with 
restrictions. 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  company's  road  from  Herkimer 

to  Malone,  N.  Y.,  including  branches,  182.18  miles,  covered  by  the  first  lien  of  the  First  4s 
of  1991. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New 
York  Central  &  Hudson  River  Railroad  Company  by  endorsement  under  the  terms  of 
the  lease. 

Trustee:  Guaranty  Trust  Company,  New  York. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Connecticut  and 
Rhode  Island. 


NEW  YORK   &  HARLEM   RAILROAD 
First  Mortgage  33^5 

Dated  June  1,  1897  Maturing  May  1,  2000 

Interest  payable  May  1  and  November  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

Authorized  $12,000,000  Outstanding  $12,000,000 

Per  mile  .    .  88,200 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  the  Grand 

Central  Station,  New  York,  to  Chatham,  N.  Y.,  including  branches,  totalling  136.48  miles, 
also  on  the  Grand  Central  Station,  and  the  Terminal  at  Chatham,  N.  Y.,  including  realty 
north  of  the  Harlem  River,  equipment,  franchises  and  all  incomes. 
[  490  ] 


These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  York- 
Central  &  Hudson  River  Railroad  Company  under  the  terms  of  its  lease. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  New  York  &  Harlem  Railroad  was  chartered  April  25,  1831,  under  the  laws  of  New  York. 
Its  corporate  existence  was  extended  for  500  years  from  April  16,  1869.  As  a  steam  road  it  was  com- 
pleted throughout  in  1852  and  was  leased  April  1,  1873,  for  401  years  to  the  New  Y^'ork  Central  & 
Hudson  River  Railroad  Company  at  a  rental  equivalent  to  8%  on  the  company's  stock  (increased 
to  10%  from  1900)  and  interest  on  the  company's  bonds. 

These  bonds  sold  in  1903  on  a  3.50  basis 


1905 

3.30 

1906 

3.45 

1908 

3.65 

1909 

3.85  (bid) 

1910 

3.77 

1911 

3.90 

1912 

3.95  to  4.00 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Vermont. 


NEW   YORK    &   NORTHERN    RAILWAY 
First  Mortgage  5s 

Dated  October  1,  1887  Maturing  October  1,  1927 

Interest  payable  April  1  and  October  1  at  the  (irand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $1. 200,000  Outstanding  $1,200,000 

Per  mile  .    .  21,000 

Security:  Tliese  bonds  are  a  direct  obligation  of  the  New  York  &  Putnam  Railroad  Company.    They 

are  secured  by  a  first  mortgage  on  56.83  miles  of  railroad,  including  the  53.73  miles  from  a 
junction  with  the  Manhattan  Railway  Company  at  155th  Street,  New  York,  to  Brewster, 
N.  Y.,  a  bridge  over  the  Harlem  River  and  the  branch  from  Van  Cortlandt  Station  to 
Yonkers,  N.  Y.;  also  on  real  estate,  building,  piers,  franchises,  rolling  stock,  now  owned  or 
hereafter  acquired,  and  all  incomes. 

Equity:  This  issue  is  prior  in  lien  to  the  New  York  &  Putnam  First  Consolidated  4s  of  1993,  a  suf- 

ficient number  of  which  have  been  reserved  to  provide  for  tlie  retirement  of  this  issue. 

Trustee:  Central  Trust  Company,  New  York. 

The  New  York  &  Northern  Railway  was  organized  February  18,  1878,  as  the  New  York  City 
&  Northern  Railroad  Company.  After  two  receiverships  in  1882  and  1893,  the  company  was  re- 
organized Jamuiry  12,  1894,  as  thS  New  Y'ork  &  Putnam  Railroad  Company.  The  latter  was  leased 
on  January  30,  1894,  to  the  New  York  Central  &  Hudson  River  Railroad  Company  for  the  term 
of  its  corporate  existence  at  a  rental  equal  to  the  interest  on  its  bonds. 

[  491  ] 


These  bonds  sold  in  1902  on  a  3.70  to  3.80  basis 


1903 

4.00 

1904 

3.95   4.12 

1905 

3.70   3.80 

1907 

4.17   4.22 

1908 

4.40 

1909 

4.38 

1910 

4.30  (bid) 

1911 

4.45  (bid) 

%  1912 

4.45  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 

NEW   YORK   &   PUTNAM   RAILROAD 
First  Consolidated  Mortgage  4s 

Dated  January  15,  1894  Maturing  October  1,  1993 

Interest  ])ayable  April  1  and  October  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  regi.sterable. 

Authorized  $0,200,000  Outstanding  $4,025,000 

Per  mile  .    .  70,()00 

Provisions  of      In  addition  to  the  $4,025,000  bonds  outstanding  as  above,  $975,000  are  reserved  for  improve- 
issue:  ments,  and  the  balance,  $1,200,000,  is  reserved  to  retire  the  New  York  &  Northern  5s  of 

1927. 

Security:  These  bonds  are  secured  by  a  second  mortgage  on  the  56.83  miles  of  main  line,  branch  and 

bridge,  which  are  covered  by  the  first  lien  of  the  First  5s  of  1927. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  York 
Central  &  Hudson  River  Railroad  Company  by  endorsement. 

Trustee:  Union  Trust  Company,  New  York. 

The  New  York  &  Putnam  Railroad  Company  was  incorporated  under  the  laws  of  New  York 
in  1894  as  successor  to  the  New  York  &  Northern  Railroad.  The  property  was  leased  on  January 
13,  1894,  to  the  New  York  Central  &  Hudson  River  during  its  corporate  existence,  the  lessee  to  pay 
as  annual  rental  interest  at  4%  on  bonds  secured  by  the  above  mortgage,  operating,  organization 
and  maintenance  expenses,  taxes  and  assessments.  The  entire  capital  stock  of  the  New  York  &  Put- 
nam Railroad  Company  is  owned  by  the  New  Y'ork  Central  &  Hudson  River  Railroad  Company. 

These  bonds  sold  in  1905  on  a  3.72  to  3.875  basis 

1906  3.85       4.00 

1908  4.00 

1909  4.05  (bid) 

1910  4.05       4.20 

1911  4.10 
December,  1912  4.15  (bid)  * 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hamjjshire  and  Rhode  Island. 

[  492  ] 


NEW   JERSEY   JUNCTION   RAILROAD 

First  Mortgage  Currency  4s 

Dated  June  30,  1886  Maturing  February  1,  198C 

Interest  payable  February  1  and  August  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  fully  registerable. 
Registered  bonds  of  $1,000. 

Authorized  $4,000,000  Outstanding  $1,700,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  4.78  miles  of  road,  including  the  line  from 

Weehawken  to  Jersey  City  and  the  Harsimus  Branch;  also  on  floating  equipment,  rolling 
stock,  lands,  water  rights,  structures,  leases,  franchises  and  income,  subject  to  the  right  to 
abandon  anj'  part  of  the  main  line  south  of  the  connection  with  the  Pennsylvania  Railroad. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  York 
Central  &  Hudson  River  Railroad  Company  by  endorsement. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  New  Jersey  Junction  Railroad  Company  was  organized  in  New  Jersey  on  February  25, 
1886,  for  the  purpose  of  providing  connections  and  facilities  for  interchange  of  traffic  between  the 
railway  systems  terminating  at  Jersey  City,  Hoboken  and  Weehawken.  The  property  and  futine 
acquisitions  were  leased  to  the  New  Y^ork  Central  &  Hudson  River  Railroad  Company  on  June  30, 
1886,  for  100  years,  the  lessor  guaranteeing  payment  of  principal  at  maturity  and  interest  ujjon  all 
bonds.  The  entire  capital  stock  of  the  New  Jersey  Junction  Railroad  Company  is  owned  by  the 
New  York  Central  &  Hudson  River  Railroad  Companj^ 

These  bonds  sold  in  190'i  on  a  3.80  basis 
These  bonds  were  quoted  in  1909  3.95  (bid) 

1910  4.30 

1911  4.20 
December,  191"^           4.15 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


[  493 


WEST  SHORE  RAILROAD 
First  Mortgage  Currency  4s 

Dated  December  5,  1885  Maturing  January  1,  2361 

Interest  payable  January  1  and  July  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  fully  registerable. 
Registered  bonds  of  $500,  $1,000,  $10,000  and  $50,000. 

Authorized  $50,000,000  Outstanding  $50,000,000 

Per  mile  .    .  104,400 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  479.11  miles  of  road,  together  with  lancls, 

water  rights,  tracks,  bridges,  piers,  depots,  elevators,  rolling  stock,  floating  equipment,  etc. 
They  are  secured  by  first  mortgage  on  the  road  from  Weehawken,  N.  J.,  to  Buffalo,  N.  Y., 
423.67  miles,  and  from  Syracuse  to  Earlville,  N.  Y.,  42.72  miles. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  York 
Central  &  Hudson  River  Railroad  Company  by  endorsement. 

Trustee:  Union  Trust  Company,  New  York. 

The  West  Shore  Railroad  Company  was  chartered  under  the  laws  of  New  York  on  December  5, 
1885,  as  successor  to  the  New  York,  West  Shore  &  Buffalo  Railway  Company.  The  property  is 
leased  to  the  New  York  Central  &  Hudson  River  Railroad  for  475  years  from  January  1,  1886,  with 
the  privilege  of  a  500-year  extension.  The  lessee  pays  as  annual  rental  an  amount  equal  to  interest 
on  bonded  debt.  The  entire  capital  stock  of  the  West  Shore  Railroad  Company  is  owned  by  the 
New  York  Central  &  Hudson  River  Railroad. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Ham]).shire  and  Rhode 
Island. 


ROME,  WATERTOWN   &   OGDENSBURG   RAILROAD 

First  Consolidated  Mortgage  5s,  4s  and  33.^3 

Dated  July  1,  1874  Maturing  July  1,  1922 

Interest  payable  A])ril  1  and  October  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $10,000,000  Outstanding  5s     $9,076,000 

33^s      500,000 

4s  419,000 

Per  mile  .    .  24,100 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  414.87  miles  of  road,  equipment  and 

future  acquisitions.    They  are  secured  by  a  first  mortgage  on  377.5  miles  of  road,  including 

the  lines  between  Richland  and  Norwood,  and  Niagara  Junction  and  Oswego,  N.  Y.     They 

are  further  secured  by  a  second  mortgage  on  37.38  miles  of  road  subject  to  $130,000  Nor- 

[  494  ] 


wood  &  Montreal  First  5s  of  1916,  $175,000  Syracuse,  Phoenix  &  Oswego  First  6s  of  1915, 
$375,000  Rome,  Watertown  &  Ogdensburg  Terminal  Railroad  First  5s  of  1918  and  $100,000 
Oswego  Railroad  Bridge  6s  of  1915. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New 
York  Central  &  Hudson  River  Railroad  under  the  terms  of  its  lease. 

Extension:  These  bonds  originally  were  payable  July  1,  1904,  but  by  an  agreement  with  the  holders  this 

date  was  extended  from  November  4,  1891,  to  July  1,  1922,  the  rate  of  interest  being  reduced 
from  7%. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Rome,  Watertown  &  Ogdensburg  Railroad  Company  was  chartered  in  New  York  in  July, 
1861,  as  the  consolidation  of  the  Watertown  &  Rome  Railroad  and  the  Potsdam  &  Watertown  Rail- 
road Companies.  As  the  result  of  consolidations  of  smaller  lines,  the  company  had  developed  by 
1890  into  a  system  of  643  miles,  owned,  leased  and  operated.  On  March  14,  1891,  its  entire  property 
was  taken  over  under  lease  in  perpetuity  by  the  New  Y^ork  Central  &  Hudson  River  Railroad  Com- 
pany, the  lessee  guaranteeing  the  rentals  of  the  leased  lines  of  the  lessor,  5%  on  the  company's  out- 
standing capital  stock,  and  assuming  all  the  funded  obligations  outstanding. 

On  April  9,  1912,  the  Public  Service  Commission  granted  the  application  of  the  company  to 
purchase  the  capital  stock  of  the  Rome,  Watertown  &  Ogdensburg  Company,  together  with  the 
capital  stock  of  the  LHica  &  Black  River  Railroad  Company,  and  to  issue  therefor  $16,429,000  4% 
30-year  debentures. 

The  First  5s  of  1922  sold  in  1902  on  a  3.12  to  3.70  basis 


1903 

3.40 

3.75 

1904 

3.50 

3.80 

1905 

3.45 

3.70 

1906 

3.50 

4.00 

1907 

3.75 

4.75 

1908 

3.87 

4.15 

1909 

3.90 

4.15 

1910 

3.95 

4.25 

1911 

3.87 

4.20 

1912 

4.05 

4.25 

The  33^s,  4s  and  5s  of  1922  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire, 
Massachusetts,  Connecticut  and  Rhode  Island. 


[  495  ] 


NORWOOD    &  MONTREAL  RAILROAD 
First  Mortgage  5  s 

Dated  March  6,  1886  Maturing  Ajjril  1,  191G 

Interest  payable  AiJiil  1  and  October  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $360,000  Outsta;nding  $130,000 

Per  mile  .    .       10,000 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Norwood  to  the 

boundary  line  of  New  York,  13.0  miles,  also  upon  all  lands,  buildings,  eciuipment,  franchises 
and  incomes  of  the  company. 

The  bonds  were  ASSUMED  by  the  Rome,  Watertown  &  Ogdensburg  Railroad  Conipanv, 
and  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  ^'ork 
Central  &  Hudson  River  Railroad  Company  under  the  terms  of  its  lease. 

Equity:  These  bonds  are  prior  in  lion  to  the  Rome,  Watertown  &  Ogdensburg  First  Consolidated  3' is. 

4s  and  5s  of  1922. 

Trustee:  New  York  Trust  Company,  New  York. 

The  Norwood  &  Montreal  Railroad  Company  was  organized  March  1,  1884,  and  its  road  (as 
above)  was  opened  for  traffic  September  27,  1886.  It  was  leased  in  that  year  to  tlie  Rome,  Water- 
town  &  Ogdensburg  Raih-oad  Company,  the  rental  being  interest  on  its  bonds.  It  was  merged  with 
the  latter  company  in  1889,  and  became  subject  with  it  to  the  New  York  Central  &  Hudson  River 
Railroad  Company  lease  of  INIarch,  1891. 

These  bonds  are  considered  a  legal  investiiieiit  for  savings  bauks  in  Maine,  New  Hampshire,  Massa- 
chusetts and  Connecticut. 


OSWEGO   RAILROAD  BRIDGE   COMPANY 

First  Mortgage  6s 

Dated  January  31,  1885  Maturing  February  1,  1915 

Interest  payable  Februnry  1  and  August  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000. 
Authorized  $100,000  Outstanding  $100,000 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  railroad  bridge  in  the  city  of  Oswego, 

together  with  all  the  real  and  personal  property,  incomes  and  franchises  of  the  company . 

These  bonds  have  been  ASSUMED  by  the  Rome,  Watertown  &  Ogdensburg  Railroad  Com- 
pany, and  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New 
York  Central  &  Hudson  River  Railroad  Company  under  the  terms  of  its  lease. 
[  496  ] 


Equity:  The  above  bonds  are  prior  in  lien  to  the  Rome,  Watertown  &  Ogdensburg  Railroad  First 

ConsoUdated  3J-2S,  4s  and  5s  of  1922. 

The  Oswego  Railroad  Bridge  Company  was  chartered  in  1872  to  construct  tlie  above-mentioned 
bridge.  It  was  consolidated  with  the  Rome,  Watertown  &  Ogdensburg  Railroad  Company  on  April 
15,  1885,  and  became  subject  with  it  to  the  New  York  Central  &  Hudson  River  Railroad  Company's 
lease  of  1891. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massa- 
chusetts and  Connecticut. 


SYRACUSE,  PHOENIX   &   OSWEGO   RAILROAD 
First  Mortgage  6s 

Dated  February  15,  188.5  INIaturing  February  1,  Ifll.'S 

Interest  ])ayable  February  1  and  August  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $100  and  $1,000. 

Authorized  $400,000  Outstanding  $175,000 

Per  mile  .    .       10,300 

Seciuity :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line,  extending  from  Wood- 

ward to  Fulton,  N.  Y.,  17.08  miles,  together  with  lands,  buildings,  equipment,  franchises 
and  incemes,  also  an  extension  to  Fulton  belonging  to  the  Fulton  &  Oswego  Railroad  Company. 

These  bonds  were  ASSUMED  l>y  the  Rome,  Watertown  &  Ogdensburg  Railroad  Company, 
and  have  been  GUARANTKKl)  as  to  PRINCIPAL  and  INTEREST  by  the  New  York 
Central  &  Hudson  River  Ruilroad  Company  under  tlie  terms  of  its  lease. 

Equity:  These  bonds  are  prior  in  lien  to  the  Rome,  Watertown  &  Ogdensburg  First  (Consolidated  3i'2S> 

4s  and  5s  of  1922. 

Trustee:  Bankers  Trust  Company,  New  York. 

The  Syracuse,  PhoenLx  &  Oswego  Railroad  Company  was  chartered  November  29,  1871,  to 
construct  a  road  from  Woodward  to  Fulton  and  the  Syracuse  Northwestern  Railroad  Company 
was  chartered  September  19,  1874,  to  build  from  Woodward  to  Syracuse.  The  two  were  consoli- 
dated under  the  name  of  the  former  Jime  10,  1875.  After  a  reorganization  in  1885  the  property  of 
the  former  was  leased  to  the  Rome,  Watertown  &  Ogdensburg  Railroad  Company  for  450  years. 
In  1889  the  company  was  consolidated  with  the  latter  and  became  subject  with  it  to  the  New  York 
Central  &  Hudson  River  Railroad  Company's  lease  of  1891. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massa- 
chusetts and  Connecticut. 


497 


ROME,  WATERTOWN    &    OGDENSBURG   TERMINAL   RAILROAD 

First  Mortgage  5s 

Dated  March  12,  1888  Maturing  May  1,  1918 

Interest  payable  May  1  and  November  1  at  the  Grand  Central  Station,  New  York. 


Coupon  bonds  of  $1,000. 


Authorized  $375,000 
Security : 


Outstanding  $375,000 
Per  mile  .    .       53,550 


Equity : 
Trustee : 


The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Rochester  to 
Winsor  Beach,  N.  Y.,  7.3  miles,  together  with  lands,  buildings,  rolling  stock,  leases,  franchises 
and  incomes. 

These  bonds  were  ASSUMED  by  the  Rome,  Watertown  &  Ogdensburg  Railroad  Company, 
and  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New  York 
Central  &  Hudson  River  Railroad  Company  under  the  terms  of  its  lease. 

These  bonds  are  prior  in  lien  to  the  Rome,  Watertown  &  Ogdensburg  First  Consolidated 

3i^s,  4s  and  5s  of  1922. 

Farmers'  Loan  &  Trust  Company,  New  York. 


These  bonds  were  sold  in  1909  on  a  4.10  basis 

1910  4.40 

1911  4.30  (bid) 
December,  1912  4.70 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massa- 
chusetts and  Connecticut. 


CARTHAGE,  WATERTOWN    &   SACKET'S   HARBOR  RAILROAD 
Consolidated  Mortgage  5s 

Dated  July  1,  1891  Maturing  July  1,  1931 

Interest  payable  January  1  and  July  1  at  the  Grand  Central  Station,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $300,000 
Security : 


Outstanding  $300,000 
Per  mile  .    .       10,300 


Trustee: 


These  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Carthage  to  Sacket's 
Harbor,  N.  Y.,  via  Watertown,  including  the  terminals,  lands,  buildings,  equipment  and 
franchises  of  the  same.    The  mileage  covered  is  28.96  miles. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New 
York  Central  &  Hudson  River  Railroad  Company  by  endorsement. 

Guaranty  Trust  Company,  New  York. 

[  498  ] 


The  Carthage,  Watertown  &  Sacket's  Harbor  Railroad  was  organized  February  5,  1869,  and 
opened  for  traffic  in  1872.  It  was  leased  on  February  1,  1872,  to  the  Utica  &  Black  River  Railroad 
Company  for  the  term  of  its  corporate  existence.  The  latter  agreed  to  keep  the  property  in  repair 
and  pay  as  rent  37 ^  2'^7)  of  gross  earnings. 

In  1886  the  Utica  &  Black  River  Railroad  Company  was  leased  for  the  term  of  its  corporate 
existence  to  the  Rome,  Watertown  &  Ogdensbui-g  Railroad  Company,  the  latter  assuming  all  its 
obligations  including  its  leases.  The  New  York  Central  &  Hudson  River  Railroad  Company  leased 
the  entire  property  and  rights  of  the  Rome,  Watertown  &  Ogdensburg  Railroad  Company  in  1891. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Massachusetts 
and  Rhode  Island. 


OSWEGO    &   ROME   RAILROAD 
First  Mortgage  7s 

Dated  May  i-Z,  1865  Maturing  May  1,  1915 

Interest  payable  May  1  and  November  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $500  and  $1,000. 

Authorized  $350,000  Outstanding  $350,000 

Per  mile  .    .       13,000 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Oswego  to  Rich- 

land, N.  Y.,  26.63  miles,  together  with  buildings  and  equipment.  This  mortgage  is  prior  in 
lien  to  any  claim  of  the  Rome,  Watertown  &  Ogdensburg  Railroad. 

These  bonds  were  GUARANTEED  as  to  INTEREST  by  the  Rome,  Watertown  &  Ogdens- 
burg Railroad  Company.  This  guarantee  has  been  ASSIJMED  by  tiie  New  York  Central  & 
Hudson  River  Railroad  Company  under  the  terms  of  its  lease. 

Equity:  These  bonds  are  prior  in  lien  to  $400,000  Oswego  &  Rome  Second  Mortgage  5s  of  1915. 

The  Oswego  &  Rome  Railroad  was  organized  in  April,  1863,  and  was  opened  for  traffic  January 
1,  1866,  at  which  time  it  was  leased  to  the  Rome,  Watertown  &  Ogdensburg  Railroad  Company  at 
an  annual  rental  equal  to  the  interest  on  the  company's  bonds  and  8%  on  its  outstanding  capital 
stock.  The  Rome,  Watertown  &  Ogdensburg  Railroad  Company  was  leased,  in  turn,  to  the  New 
York  Central  &  Hudson  River  Railroad  Company  for  the  term  of  its  corporate  existence  in  1891. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


[  499  J 


OSWEGO   &   ROME   RAILROAD 
Second  Mortgage  ss 

Dated  April  1,  1S!»1  Maluring  Mny  1,  1915 

Iiileresl  payable  Fehru.ary  1  uiid  August  1  ai  the  Grand  Ceiilial  Slaliuu,  New  York. 

Coupon  bonds  of  $1,000. 

Aulhorized  $100,000  Outstanding  $100,000 

Per  mile  .    .       14,800 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  comjjany's  property  covered  by 

the  first  lien  of  the  First  Mortgage  7s  of  1915. 

These  bonds  were  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Rome, 
AVatertown  &  Ogdensburg  Railroad  Company  by  endorsement.  This  guarantee  has  been 
ASSUMED  by  the  New  York  Central  &  Hudson  River  Railroad  Company  under  the  terms 
of  its  lease. 

Trustee:  Central  Trust  Company,  New  York. 

These  bonds  sold  in  1907  on  a  4.55  basis 

1908  4.15 

1909  4.05  (bid) 

1910  4.55  (asked) 

1911  5.00  (bid) 

1912  4.62 


UTICA   &  BLACK  RIVER   RAILROAD 

First  Mortgage  4s 

Y>nXiid  May  1,  1890  Matining  July  1,  1922 

Interest  ])ayablo  .lanuary  1  and  .July  1  at  the  Grand  Central  Station,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  i)rinci])al. 

Autliori/.cd  .$2,()(t(),()0(t  Ont-stauding  $  J, 050,000 

Per  mile  .    .  l.S,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  tlic  (•()m|)any".s  line  from  Utica  to  Ogdens- 

burg, N.  Y.,  and  branch  to  Clayton,  totalling  150. l(j  miles,  together  with  all  the  lands,  build- 
ings, equipment,  leases  and  franchises  belonging  to  the  same. 

These  bonds  were  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Rome, 
Watertown  &  Ogdensburg  Railroad  Company  by  endorsement.  This  guarantee  is  GUAR- 
ANTEED by  the  New  York  Central  &  Hudson  River  Railroad  Company  under  the  terms 
of  its  lease. 


Tru.stee:  Central  Trust  Company,  New  York. 

[  500  ] 


The  Utica  &  Black  River  Railroad  Company  was  chartered  in  New  York  January  31,  1853, 
as  the  Black  River  &  Utica  Railroad  Company.  The  line  was  opened  for  traffic  December  15,  1855. 
It  was  sold  under  foi-eclosure  INIarch  31,  1860,  and  i-eorganized  imder  its  jiresent  name. 

Its  entire  property  and  leasehold  interests  were  leased  to  the  Rome,  Watertown  &  Ogdensbm-g 
Railroad  Com])any  in  1886.  The  latter  company  was  in  turn  leased  by  the  New  York  Central  & 
Hudson  River  Railroad  Company  in  1891. 


Tiicsc  I)oik1s  sold  ill  1902  on 

a  3.33  to  3.47  basis 

1903 

3.45 

3.70 

1904 

3.70 

1905 

3.40 

1906 

3.70 

1907 

3.75 

1908 

3.70 

4.05 

1909 

3.77 

1910 

3.80 

4.00 

1911 

4.00 

December,  1912 

4.62 

(bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massa- 
chusetts and  Connecticut. 


DUNKIRK,  ALLEGHENY  VALLEY   &  PITTSBURGH  RAILROAD 
First  Mortgage  41^5 

Dated  August  1,  1910  Maturing  August  1,  1960 

Interest  payable  February  1  and  August  1  at  New  York. 

Coui)ou  Iwnds  of  $1,000,  registerable  as  to  principal  or  fully  rcgistcrable. 
Registered  bonds  of  $1,000  and  nuiltiples. 
Coupon  and  registered  bonds  interchangeable. 

Aulliorized  $5,000,000  Outstanding  $'2,900,000 

Per  mile  .    .  32,000 

Provisions  of      Of  the   total   amount  authorized,   $2,900,000  is  oulslanrling   as   above,   and   the   balance, 
issue:  $2,100,000,  has  been  reserved  for  extensions  and  betterments  with  rcsirictio'ns. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Dunkirk, 

N.  Y.,  to  Titusville,  Pa.,  90.5  miles,  together  with  lands,  buildings,  equipment  and  future 
acquisitions. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New 
York  Central  &  Hudson  River  Railroad  Company  under  the  terms  of  its  lease. 

Trustee:  Guaranty  Trust  Company,  New  York. 

The  Dunkirk,  Allegheny  Valley  &  Pittsburgh  Railroad  Company  was  organized  December  1, 
1872,  as  a  consolidation  of  the  Dunkirk.  Warren  &  Pittsburgh  Railroad  and  the  Warren  &  Venango 
Railroad  Companies.    The  property  of  the  company  is  leased  to  the  New  York  Central  &  Hudson 

[  501  ] 


River  Railroad  Company,  but  operated  independently,  the  lessee  paying  as  rental  interest  on  the 
company's  bonds  and  3%  on  one-half  the  company's  capital  stock. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hampshire. 


BOSTON    &   ALBANY   RAILROAD 

Debenture  4s 

Dated  October  1,  1893  Maturing  October  1,  1913 

Interest  payable  April  1  and  October  1  at  the  Terminal  Station,  Boston. 

Coupon  bonds  of  $1,000. 
Authorized  $3,627,000  Outstanding  $3,627,000 

Security :  These  bonds  are  a  direct  obligation  of  the  company,  but  are  not  secured  by  a  mortgage.    The 

indenture  provides  that  no  other  mortgage  shall  be  placed  upon  the  property  without  jointly 
including  the  above  issue  under  it. 

The  above  bonds  have  been  GUARANTEED  as  to  INTEREST  by  the  New  York  Central  & 
Hudson  River  Railroad  Company  under  the  terms  of  its  lease. 

These  bonds  sold  in  1902  on  a  3.20  to  3.25  basis 

1905  4.10 

1906  3.75 

1908  4.00   4.70 

1909  4.25  (bid) 

1910  4.45  (bid) 

1911  4.45  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Maine. 


BOSTON   &  ALBANY  RAILROAD 
Debenture  iHs 

Dated  January  1,  1901  Maturing  January  1,  1951 

Interest  payable  January  1  and  July  1  at  Terminal  Station,  Boston. 

Coupon  bonds  of  $1,000. 
Authorized  $2,500,000  Outstanding  $1,000,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Boston  &  Albany  Railroad  Company,  but 

are  not  secured  by  a  mortgage.     The  indenture  provides  that  no  other  mortgage  shall  be 
placed  upon  the  property  of  the  company  without  jointly  including  the  above  issue  under  it. 

These  bonds  have  been  GUARANTEED  as  to  INTEREST  by  the  New  York  Central  & 
Hudson  River  Railroad  Company  under  the  terms  of  its  lease. 
[  502  ] 


These  bonds  were  quoted  in  1909  on  a  4.05  basis  (bid) 

1910  4.15 

1911  4.20 
December,  1912  4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Maine. 


BOSTON    &  ALBANY   RAILROAD 
Debenture  3Hs 

Issued  in  1882  under  a  Special  Act  of  the  Massachusetts  Legislature  Maturing  April  1,  1952 

Interest  payable  April  1  and  October  1  at  Terminal  Station,  Boston. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $1,000. 
Authorized  $3,858,000  Outstanding  $3,858,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Bo.ston  &  Albany  Railroad  Company,  but  are 

not  secured  by  a  mortgage.    The  indenture  provides  that  no  mortgage  shall  be  placed  on  the 
property  of  the  company  without  jointly  including  the  above  issue  thereunder. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New 
York  Central  &  Hudson  River  Railroad  Company  by  endorsement. 

These  bonds  were  extended  April  1,  1902,  to  the  above  maturity.     At  the  same  time  the 
interest  rate  was  reduced  from  5%  to  3}/^%. 

These  bonds  were  quoted  in  1909  on  a  4.05  basis  (bid) 

1910  4.15 

1911  4.15 
December,  1912  4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Maine. 


BOSTON    &   ALBANY   RAILROAD 

Debenture  4s 

Dated  May  1,  1908  Maturing  May  1,  1933 

Interest  payable  May  1  and  November  1  at  Terminal  Station,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $7,000,000  Outstanding  $7,000,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Boston  &  Albany  Railroad  Company,  but  are 

not  secured  by  a  mortgage.    The  indenture  provides  that  no  mortgage  shall  be  placed  on  the 
company's  property  without  jointly  including  this  issue  thereunder. 
[  503  ] 


These  I)oml.s  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New 
York  Central  &  Hudson  River  Railroad  Company  by  endorsement. 

These  bonds  were  quoted  in  1909  on  a  4.00  to  4.12  basis 
1911  4.15  (bid) 

December,  1912  4.45  (bid) 

These  bonds  arc  considered  a  h-gal  investment  for  savings  banks  in  New  Enghuid  except  in  Maine. 


BOSTON    &   ALBANY   RAILROAD 
Debenture  4s 

Dated  May  1,  1909  Maturing  May  1,  1934 

Interest  i)ayable  May  1  and  November  1  at  Terminal  Slalioii,  Boston. 

Coupon  bonds  of  $1,000. 

Registered  bonds  of  $1,000,  $5,000  and  $10,000. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $4,500,000  Outstanding  $4,500,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Boston  &  Albany  Railroad  Company,  but  are 

not  secured  by  a  mortgage.    The  indenture  further  provides  that  no  mortgage  shall  be  placed 
on  the  company's  property  without  including  the  above  issue  thereunder. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New 
York  Central  &  Hudson  River  Railroad  Company  by  endorsement. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  INIainc. 


BOSTON   &  ALBANY  RAILROAD 
Debenture  4s 

Dated  May  1,  1910  Maiming  M;iy  1,  1935 

Jiilerc.sl  i)ayal)le  May  1  and  November  1  at  Buslon. 

Coupon  ])onds  of  $1,000. 

IJegistered  bonds  of  $1,000. 

('(iiipoii  and  registered  bonds  iiiten'iiaiigcable. 

Authorized  .$2,000,000  Oulslaiiding  $2,000,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Boston  &  Albany  Railroad  Company,  but 

are  not  secured  by  a  mortgage.    The  indenture  further  provides  that  no  mortgage  shall  be 
placed  on  the  company's  property  without  including  the  above  issue  thereunder. 

These  bonds  have  been  GUAR.iNTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New 
York  Central  &  Hudson  River  Railroad  Company  by  endorsement. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Maine. 

[504  ] 


BOSTON    &  ALBANY  RAILROAD 

Debenture  43^s 

Dated  July  1,  WU  Maturing  July  1,  19^7 

Interest  payable  January  1  and  July  1  at  the  tJld  Colony  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000. 
Authorized  $1,000,000  Outstanding  $1,000,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Boston  &  Albany  Railroad  Company,  but  are 

not  secured  by  a  mortgage.    The  indenture  further  jirovides  that  no  mortgage  shall  be  placed 
on  the  company's  property  without  including  the  above  issue  thereunder. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  New 
York  Central  &  Hudson  River  Railroad  Company  by  endorsement. 

These  bonds  are  considered  legal  for  saving  banks  in  New  England  except  Maine. 


NEW  YORK   CENTRAL   &   HUDSON   RIVER   RAILROAD 
Boston  &  Albany  Equipment  Trust  4J^s 

Dated  October  1,  VJVi  Maturing  $348,000  each  Octolier  1  to  October  1,  19!27 

Lilcrest  payable  Ai)ril  1  and  October  1  in  New  York. 

Coupon  bonds  of  $1,000,  rcgisterable  as  to  principal. 
Authorized  $7,500,000  Outstanding  $5,'220,000 

Provisions  of      Of  the  total   amount  authorized,  $5,220,000  arc  outstanding  as  above  and   the  balance, 
issue:  $2,280,000,  has  been  reserved  for  additional  equipment,  which  shall  be  issued  up  to  90% 

of  the  actual  cost  of  equipment  delivered  to  and  held  by  the  trustee. 

Security:  Tlie  abo\'e  bonds  were  issued  under  a  Trust  Agreement  between  the  New  York  Central  & 

Hudson  River  Railroad  Company  and  the  trustee  whereby  the  title  of  the  equipment  re- 
mains with  the  trustee  as  security  for  payment  of  principal  and  interest  of  the  outstanding 
bonds.    The  title  shall  so  remain  until  the  railroad  company  has  retired  all  of  the  same. 

Trustee:  (iuaraiity  Trust  Company,  New  York. 

In  regard  to  the  abo\'e  issue.  The  New  York,  New  Haven  &  Iliulford  Railroad  Company  has 
entered  into  an  agreement  to  pay  the  New  York  Central  &  Hudson  River  Railroad  Company  one- 
half  the  money  required  to  meet  the  obligations  of  this  trust.  Having  done  so,  each  of  the  two 
companies  will,  at  its  expiration,  become  the  owner  of  one-half  of  this  equipment. 


[  505  ] 


NEW  YORK   CENTRAL   &  HUDSON   RIVER   RAILROAD 
Thirty-Year  Debenture  Gold  4s 

Dated  January  1,  191'2  Maturing  January  1,  1942 

Interest  payable  January  1  and  July  1  at  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Registered  bonds  of  $1,000,  $5,000,  $10,000  and  multiples  of  $10,000. 

Coupon  and  registered  bonds  are  interchangeable. 

Authorized  $50,000,000  Outstanding  $8,995,000 

Provisions  of      Of  the  total  amount  authorized,  $8,995,000  are  outstanding  as  above,  and  the  balance, 
issue:  $41,005,000,  has  been  reserved  for  e.xtensions  subject  to  the  limitations  indicated  by  the 

indenture. 

Security:  The  above  bonds  are  a  direct  obligation  of  the  New  York  Central  &  Hudson  River  Railroad, 

but  are  not  secured  by  a  mortgage.  The  company  agrees  in  its  indenture  not  to  create  any 
further  mortgage  without  securing  these  bonds  equally  thereunder.  This  provision,  however, 
shall  not  prevent  the  renewal  or  extension  of  any  existing  mortgage,  nor  does  it  apply  in 
regard  to  the  New  York  Central  Collateral  Trust  Sj^s  of  1998. 

Trustee :  Guaranty  Trust  Company,  New  York. 

These  bonds  were  issued  for  the  purpose  of  acquiring  the  stock  of  the  New  York  &  Harlem 
Railroad  Company,  the  Rome,  Watertown  &  Ogdensburg  Railroad  Company  and  the  Utica  &  Black 
River  Railroad  Company.  They  were  offered  in  1912  at  92  and  interest  through  J.  P.  Morgan  & 
Company  to  the  stockholders  of  the  above  railroad  companies. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


NEW  YORK   CENTRAL  LINES 
Equipment  Trust  5s 

Dated  November  1,  1907  Maturing  $2,000,000  annually  until  November  1,  1922 

Interest  payable  May  1  and  November  1  at  the  Guaranty  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $5,000,  $10,000  and  $50,000. 

Authorized  $30,000,000  Outstanding  $20,000,000 

$10,000,000  of  this  issue  had  been  redeemed  to  January  1,  1913. 

Security :  The  above  bonds  are  a  joint  and  several  obligation  of  the  New  York  Central  &  Hudson  River 

Railroad,  the  Lake  Shore  &  Michigan  Southern  Railway,  the  Michigan  Central  Railroad,  the 
Cleveland,  Cincinnati,  Chicago  &  St.  Louis  Railway,  and  the  Chicago,  Indiana  &  Southern 
Railroad  Companies.  They  are  secured  by  equipment  against  which  these  certificates  were 
issued  at  90%  of  the  cost  of  the  equipment  furnished.  The  indenture  provides  that  the  title 
to  the  equipment  shall  remain  in  the  name  of  the  trustee  until  the  notes  are  fully  paid. 
[  506  ] 


These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  each  of  the  several 
companies  party  to  the  trust  agreement. 

Guaranty  Trust  Company,  New  York. 


NEW   YORK   CENTRAL   LINES 
Equipment  Trust  4J^s 

Dated  January  1,  1910  Maturing  $2,000,000  annually  to  January  1,  1925,  inclusive 

Interest  payable  January  1  and  July  1  at  the  Guaranty  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Registered  bonds  of  $5,000,  $10,000  and  $50,000. 

Authorized  $30,000,000  Outstanding  $24,000,000 

$6,000,000  of  this  issue  had  been  redeemed  to  January  2,  1913. 

Security :  The  above  bonds  are  a  joint  and  several  obligation  of  the  New  York  Central  &  Hudson  River 

Railroad,  the  Lake  Shore  &  Michigan  Southern  Railway,  the  Michigan  Central  Railroad,  the 
Cleveland,  Cincinnati,  Chicago  &  St.  Louis  Railway,  and  the  Chicago,  Indiana  &  Southern 
Railroad  Companies.  They  are  secured  by  equipment  against  which  these  certificates  were 
issued  at  90%  of  the  cost  of  the  equipment  furnished.  The  indenture  provides  that  the 
title  to  the  equipment  shall  remain  in  the  name  of  the  trustee  until  the  notes  are  fully  paid. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  each  of  the 
companies  represented  in  the  trust  agreement. 

Trustee:  Guaranty  Trust  Company,  New  York. 


NEW  YORK   CENTRAL   LINES 
Equipment  Trust  4)^s 

Dated  January  1,  1912  Maturing  $1,000,000  annually  from  January  1,  1913,  to  January  1,  1927,  inclusive 

Interest  payable  January  1  and  July  1  at  Guaranty  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $5,000,  $10,000  and  $50,000. 

Authorized  $15,000,000  Outstanding  $14,000,000 

$1,000,000  of  this  i.ssue  have  been  redeemed  to  January  1,  1913. 

Security :  The  above  bonds  are  a  joint  and  several  obligation  of  the  New  York  Central  &  Hudson  River 

Railroad,  the  Lake  Shore  &  Michigan  Southern  Railway,  the  Michigan  Central  Railroad, 
the  Cleveland,  Cincinnati,  Chicago  &  St.  Louis  Railway,  and  the  Chicago,  Indiana  &  South- 
ern Railroad  Companies.  They  are  secured  l)y  <'(iui])ment  against  which  these  certificates 
were  issued  at  90%  of  the  cost  of  the  equipment  furnished.  The  indenture  provides  that 
the  title  to  the  equipment  shall  remain  in  the  name  of  the  trustee  until  the  notes  are  fully  paid. 
[507  ] 


These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  each  of  the  com- 
panies represented  in  the  trust  agreement. 

Trustee:  Guaranty  Trust  Company,  New  York. 


NEW  YORK   CENTRAL  LINES 
Equipment  Trust  43/^s 

Dated  January  1,  1913        Maturing  $1,600,000  annually  from  January  1,  1914,  to  January  1,  1928,  inclusive 
Inlcrest  payable  January  1  and  July  1  in  New  York  and  London. 

Coupon  bonds  of  $1,000,  registerable  as  to  jirincijial. 

Registered  bond.s  of  $1,000,  $5,000,  $10,000  and  $.>0,()00. 

Authorized  $24,000,000  Outstanding  $12,547,000 

Security:  The  above  bonds  are  a  joint  and  several  obligation  of  the  New  York  Central  &  Hudson  River 

Railroad,  the  Lake  Shore  &  Michigan  Southern  Railway,  the  Michigan  Central  Railroad, 
the  Cleveland,  Cincinnati,  Chicago  &  St.  Louis  Railway,  the  Pittsburgh  &  Lake  Erie  Railroad 
and  the  Toledo  &  Ohio  Central  Railroad  Companies.  They  are  secured  by  an  equipment 
against  which  these  certificates  were  issued  at  90%  of  the  actual  cost  of  the  equipment  fur- 
nished. The  indenture  provides  that  the  title  to  the  equipment  shall  remain  with  the  trustee 
until  all  the  outstanding  obligations  are  paid. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  jointly  and  sever- 
ally by  each  of  the  companies  represented  in  the  trust  agreement. 

Trustee:  (iuaranty  Trust  Company,  New  York. 


BOND   DESCRIPTIONS   OF   CONTROLLED   ROADS 

Following  are  de.scri])tions  of  bond  issues  of  comiianies  operated  independently  but  controlled 
through  stock  ownersliij)  h.y  the  New  York  Central  &  Hudson  River  Railroad  Com])any: 


ST.  LAWRENCE    &   ADIRONDACK   RAILWAY 

First  Mortgage  5s 

Dated  July  1.  1896  Maturing  July  1,  1990 

Interest  payable  January  1  and  July  1  at  the  New  York  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $800,000  Outstanding  $800,000 

Per  mile  .    .       18,600 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Malone,  N.  Y., 

to  Valleyfield,  Can.,  and  the  line  from  JJeauhariiois  to  Adirondack  Junction,  Can.,  totalling 
1  508  ] 


43.07  miles,  together  with  all  lands,  buildings,  and  franchises  now  owned  or  hereafter  ac- 
quired, and  all  incomes. 

Equity:  These  bonds  are  prior  in  lien  to  $400,000  St.  Lawrence  &  Adirondack  Second  6s  of  1996. 

Trustee:  New  York  Trust  Company,  New  York. 

The  St.  Lawrence  &  Adirondack  Railway  was  organized  July  2,  1892,  under  the  laws  of  New 
York  and  the  Dominion  of  Canada.  On  November  18,  1895,  the  company  consolidated  with  the 
Malone  &  St.  Lawrence  Railway  Company,  and  on  July  2,  1896,  with  the  Southwestern  Railway 
Company.  The  entire  capital  stock  of  the  St.  Lawrence  &  Adirondack  Railway  Company  is  owned 
by  the  New  York  Central  &  Hudson  River  Railroad  Company,  wliich  acquired  its  control  in  Jan- 
uary, 190.-). 

These  bonds  sold  in  1906  on  a  4.10  basis 

1908  4.45 

1909  4.35 

1910  4.60  (bid) 

1911  4..'50  (bid) 

1912  4.60  (bid) 


ST.  LAWRENCE   &  ADIRONDACK  RAILWAY 

Second  Mortgage  6s 

Dated  October  1,  1896  Maturing  October  1,  1996 

Interest  payable  April  1  and  Octolier  1  at  the  Equitable  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  regislerabie  as  to  jirincipal. 
Authorized  $400,000  Outstanding  $400,000 

Per  mile  .    .         9,300 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  company's  proj)erty  covered  by 

the  first  lien  of  the  First  Mortgage  5s  of  1996  (which  see). 

Trustee:  New  York  Trust  C'ompany,  New  York. 


LITTLE   FALLS   &  DOLGEVILLE   RAILROAD 
First  Mortgage  3  s 

Dated  July  1,  1902  Maturing  July  1,  1932 

Interest  payable  January  1  and  July  1  at  American  Exchange  National  Bank,  New  York. 

Coupon  bonds  of  $100,  $500  and  $1,000. 
Authorized  $250,000  Outstanding  $250,000 

Per  mile  .    .       25,000 

Security:  The  above  bond.s  are  secured  by  a  first  mortgage  on  tiie  company's  road  from  Little  Falls  to 

Dolgeville,  N.  Y.,  10.08  miles. 

[  509  ] 


Trustee:  United  States  Mortgage  &  Trust  Company,  New  York. 

The  Little  Falls  &  Dolgeville  Railroad  was  organized  December  29,  1902,  as  a  reorganization 
after  foreclosure  of  a  company  of  the  same  name.  Almost  the  entire  capital  stock  of  the  company 
is  owned  by  the  New  York  Central  &  Hudson  River  Railroad  Company. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


RAQUETTE   LAKE   RAILWAY 
First  Mortgage  5s 

Dated  January  1,  1900  Maturing  January  1,  1»50 

Interest  payable  May  1  and  November  1  at  the  Trustee's  office,  15  Broad  Street,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $250,000  Outstanding  $250,000 

Per  mile  .    .       13,900 

Security:  These  bonds  are  secured  by  a  first  mortgage  on  the  company's  lines  from  Clearwater  Junc- 

tion to  Raquette  Lake,  N.  Y.,  18.1  miles. 

Trustee:  T.  P.  Floyd,  Esq.,  15  Broad  Street,  New  York. 

The  Raquette  Lake  Railway  Company  was  chartered  February  7,  1899,  under  the  laws  of  New 
York.  The  road  was  opened  for  traffic  July  1,  1900.  The  company  has  a  street  railway  charter, 
but  the  motive  power  is  steam.  It  is  operated  by  the  New  York  Central  &  Hudson  River  Railroad 
Company  as  agent  for  the  owners,  under  an  agreement  dated  January  1,  1901. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


TORONTO,  HAMILTON    &  BUFFALO   RAILWAY 
First  Mortgage  4s 

Dated  June  1,  1896  Maturing  June  1,  1946 

Interest  payable  June  1  and  December  1  at  the  Lincoln  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $3,280,000  Outstanding  $3,280,000 

Per  mile  .    .  39,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  83.67  miles  of  the  company's  road,  all  in 

Ontario,  together  with  etjuipment  and  future  acquisitions. 
[  510  ] 


Equity:  These  bonds  are  prior  in  lieu  to  $1,000,000  Toronto,  Hamilton  &  Buffalo  Railway  Second 

Mortgage  4s  of  1946. 

Trustee:  American  Trust  Company,  Boston. 

The  Toronto,  Hamilton  &  Buffalo  Railway  Company  was  chartered  December  1, 1892,  under  the 
laws  of  the  Dominion  of  Canada,  as  the  successor  to  the  Brantford,  Waterloo  &  Lake  Erie  Railway 
Company.  At  present  it  is  controlled  Ijy  the  New  York  Central  &  Hudson  River  Raih-oad,  the 
Canada  Southern  Railway,  the  Michigan  Central  Railroad  and  the  Canadian  Pacific  Railway 
Companies. 

These  bonds  sold  in  1902  on  a  4.05  to  4.15  basis 


1903 

4.10 

1904 

4.25 

4.30 

1905 

4.05 

4.15 

1906 

4.25 

1909 

4.45 

1910 

4.50 

4.75 

1911 

4.55 

4.75 

1912 

4.55 

4.65 

TORONTO,  HAMILTON   &  BUFFALO   RAILROAD 

Second  Mortgage  4s 

Dated  June  1,  1904  Maturmg  June  1,  1946 

Interest  payable  June  1  and  December  1  at  the  Lincoln  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $1,000,000  Outstanding  $1,000,000 

Per  mile  .    .  11,900 

Security :  The  above  bonds  are  secured  by  a  second  mortgage  on  the  property  covered  by  the  first  lien 

of  the  First  Mortgage  4s  of  1946  (which  see). 

Guaranty  The  New  York  Central  &  Hudson  River  Railroad,  the  Michigan  Central  Railway,  the  Canada 

fund:  Southern  Railway  and  the  Canadian  Pacific  Railway  Companies  have  agreed  to  set  aside, 

if  necessary,  25%  of  their  gross  earnings  upon  the  traffic  delivered  to  and  received  from  the 

Toronto,  Hamilton  &  Buffalo  Railway  Company  as  a  fund  to  meet  (1)  the  interest  on  the 

First  Mortgage  4s,  (2)  the  interest  on  the  above  Second  Mortgage  4s. 

For  history,  see  above. 


[  511 


THE  NEW  YORK,   NEW  HAVEN  &  HARTFORD 
RAILROAD  COMPANY 


THE  NEW  YORK,  NEW  HAVEN  &  HARTFORD 
RAILROAD  COMPANY 

HISTORY 

The  present  New  York,  New  Haven  &  Hartford  Railroad  was  chartered  August  6,  1872,  under 
the  laws  of  Connecticut,  Massachusetts  and  Rhode  Island,  as  the  result  of  a  consolidation  of  the 
New  Y'ork  Railroad  Company  and  the  New  Haven  Railroad  Company.  The  New  York  Railroad 
Company  had  been  chartered  in  Connecticut  as  early  as  1844,  and  was  opened  in  1849.  The  New 
Haven  Railroad  Company  was  chartered  in  Connecticut  even  earlier,  1833,  and  was  opened  for 
traffic  in  1839. 

Since  the  above-mentioned  consolidation  in  1872,  the  following  companies  have  been  merged  and 
their  obligations  assumed  by  The  New  Y'ork,  New  Haven  &  Hartford  Railroad  Company: 

Company  Date  of  merger 

1.  Stamford  &  New  Canaan  Railroad October  1,  1890 

2.  Hartford  &  Connecticut  Valley  Railroad December  21,  1892 

3.  New  York,  Providence  &  Boston  Railroad February  13,  1893 

4.  Union  Wharf  Company October  18,  1895 

5.  Shore  Line  Railway      March  18,  1897 

6.  Housatonic  Railroad March  28,  1898 

7.  Shepang,  Litchfield  &  Northern  Railroad July  9,  1898 

8.  Danbury  &  Norwalk  Railroad October  26,  1905 

9.  Providence  &  Springfield  Railroad October  30,  1905 

10.  Rhode  Island  &  Massachusetts  Railroad  (R.  I.) November  3,  1905 

11.  Woonsocket  &  Pascoag  Railroad November  3,  1905 

12.  Middletown,  Meriden  &  Waterbury  Railroad November  3,  1905 

13.  New  Haven  &  Derby  Railroad November  3,  1905 

14.  Rockville  Railroad November  6,  1905 

15.  Colchester  Railway December  16,  1905 

16.  Naugatuck  Railroad January  31,  1906 

17.  Providence  Terminal  Company      December  29,  1906 

18.  Boston  &  New  York  Air  Line  Railroad January  30,  1907 

19.  Pawtuxet  Valley  Railroad April  16,  1907 

20.  Waterbury  &  Pomerang  Valley  Railway      April  22,  1907 

21.  Manufacturers'  Railroad April  30,  1907 

22.  Torrington  &  Winchester  Street  Railway June  28,  1907 

23.  Meriden,  Southington  &  Compounce  Tramway June  28,  1907 

24.  Village  Water  Company      January  31,  1908 

25.  The  New  England  Railroad April  1,  1908 

26.  The  Stafford  Springs  Street  Railway June  30,  1908 

27.  The  Consolidated  Railway      May  31,  1907 

28.  Newport  &  Wickford  Railroad  &  Steamboat  Company    ....  October  28,  1909 

29.  Farmington  Street  Railway December  10,  1909 

{Contintjed  on  next  page)  [515   ] 


Company  Date  of  merger 

30.  New  Haven  &  Northampton  Company October  26,  1910 

31.  Berkshire  Railroad October  26,  1910 

32.  Rhode  Island  &  Massachusetts  Railroad  (Mass.) October  26,  1910 

33.  Milford,  Franklin  &  Providence  Railroad December  19,  1910 

34.  Milford  &  Woonsocket  Railroad December  19,  1910 

35.  Plymouth  &  Middleborough  Railroad November  28,  1911 

CONTROLLED   RAILROADS 

The  New  York,  New  Haven  &  Hartford  Railroad  controls  the  Central  New  England  Railway 
Company  through  a  majority  ownership  of  its  capital  stock  and  general  mortgage  income  bonds. 
The  New  York,  Ontario  &  Western  Railway  Company  is  also  controlled  through  ownership  of  22 
of  the  40  shares  of  preferred  stock  outstanding  and  291,600  of  the  581,140  shares  of  common  stock 
outstanding  June  30,  1912. 

By  means  of  the  Boston  Railroad  Holding  Company,  the  entire  common  stock  and  $24,254,000 
of  the  $27,054,000  preferred  stock  of  which  it  owns.  The  New  York,  New  Haven  &  Hartford  Rail- 
road controls  the  Boston  &  Maine  Railroad  and  its  subsidiaries.  The  Boston  Railroad  Holding 
Company  at  present  owns  6,543  shares  of  preferred  stock  out  of  a  total  of  31,498,  and  219,189  shares 
of  common  stock  out  of  a  total  of  395,050  of  the  Boston  &  Maine  Railroad.  The  Main  Central 
Railroad  is,  therefore,  a  part  of  the  New  Haven  System,  since  it  is,  in  turn,  controlled  by  a  majority 
ownership  by  the  Boston  &  Maine  Railroad. 

During  the  fiscal  year  of  1911  one-half  of  its  holdings  of  preferred  stock  of  the  Rutland  Railroad, 
amounting  to  23,5203-^  shares,  was  acquired  from  the  New  York  Central  &  Hudson  River  Railroad 
Company.  Holdings  of  the  two  companies  at  ])resent  constitute  a  majority  of  the  total  capital 
stock  of  the  Rutland  Railroad.  In  December,  1911,  the  New  Haven  applied  for  permission  to  pur- 
chase the  balance  of  the  Rutland  Stock  held  l>.y  the  New  York  Central.  The  New  York  Pul)lic 
Service  Commission  granted  the  New  Haven  this  privUege  in  May,  1912,  but  upon  an  appeal  of 
the  minority  stockliolders,  the  New  York  Supreme  Court  remanded  this  privilege,  maintaining 
that  the  Rutland  Railroad  is  a  competitor  of  the  New  Haven.  Also,  on  July  1,  1911,  an  agreement 
between  The  New  York,  New  Haven  &  Hartford  Railroad  Company  and  the  New  York  Central 
Railroad  Company  went  into  effect,  whereby  the  former  is  to  share  eqiuilly  in  the  net  results  of  the 
operations  of  the  Boston  &  Albany  Railroad,  which  was  leased  to  the  latter  for  a  term  of  99  years 
from  July  1,  1900. 

In  addition  to  the  above  holdings.  The  New  York,  New  Haven  &  Hartfonl  Railroad  is  and  has 
been  from  its  inception  a  half  owner  with  the  Pennsylvania  Railroad  in  the  construction  of  the  New 
York  Connccling  Railroad,  which  is  designed  to  be  a  new  route  for  the  interchange  of  traflic  between 
the  Pennsylvania  and  the  New  Haven  Systems,  instead  of  the  present  passenger  and  freight  ferry 
service.  The  present  investment  of  the  former  in  the  New  York  Connecting  Railroad  Company 
amounts  to  over  $2,500,000,  and  by  the  time  the  railroad  has  been  completed,  it  will  cost  approxi- 
mately $20,000,000. 

One  other  important  controlling  interest  which  The  New  York,  New  Haven  &  Hartford  holds  is 
in  the  New  York,  Westchester  &  Boston  Railway  Company,  which  was  incorporated  January  18, 
1910,  under  the  laws  of  New  York.  The  railway  extends  from  Harlem  River  at  Willis  Avenue,  New 
York,  through  the  Borough  of  the  Bronx,  and  Westchester  County,  to  Mt.  Vernon,  where  the  lines 
diverge,  one  extending  north  to  White  Plains,  the  other  extending  east  to  the  Connecticut  State  Line 
at  Port  Chester,  a  total  of  74.57  miles  of  track.  The  property  of  the  railway  is  of  high-grade  con- 
struction, and  it  runs  through  a  territory  which  includes  some  of  the  ra])idly  growing  residential 
sections  adjacent  to  New  York  City.  At  the  close  of  the  fiscal  year  of  1912,  nearly  $30,000,000 
had  been  spent  on  this  property  and  upon  this  investment  no  return  has  as  yet  been  realized.  To 
be  sure,  tlie  New  Haven  has  been  reimbursed  to  the  extent  of  $17,200,000  of  this  amount  through 

1516  j 


the  sale  of  First  Mortgage  Bonds  of  the  New  York,  Westchester  &  Boston  Railway  Company.  These 
bonds  are  guaranteed  by  the  New  Haven,  and  until  the  Westchester  property  is  on  a  substantial 
earning  basis,  interest  on  the  same  will  be  charged  against  the  earnings  of  the  former. 


LEASED   LINES 

At  the  close  of  the  company's  fiscal  year,  June  30,  1912,  there  were  eight  railroads  included  in 
the  group  of  leased  lines  for  which  the  company  paid  an  annual  rental  of  $4,474,347.  A  brief  de- 
scription of  each  of  these  properties  follows: 

1.   Old  Colony  Railroad 

The  Old  Colony  Railroad  was  chartered  in  March,  1844,  in  Massachusetts.  From  the  date  of  the 
opening  of  the  company's  original  line  in  1845,  when  thirty-seven  miles  were  put  into  commission 
between  Boston  and  Providence,  to  1893,  when  its  properties  were  leased  to  the  New  Haven,  the 
Old  Colony  Railroad  had  grown,  by  various  consolidations,  extensions  and  leases,  into  a  system  of 
over  600  miles. 

In  February,  1893,  the  Old  Colony  Railroad  was  leased  for  99  years  effective  from  March  1  of  that 
year.  By  the  terms  of  the  lease,  which  expires  March  1,  1992,  The  New  York,  New  Haven  &  Hart- 
ford Railroad  assumed  all  the  liabilities  of  the  Old  Colony  Railroad  Company  and  agreed  to  pay  as 
rental  7%  dividends  on  its  capital  stock  outstanding.  It  also  provided  for  the  exchange  of  stock 
on  the  basis  of  9  shares  of  the  parent  company's  stock  for  10  shares  of  the  subsidiary.  The  New 
York,  New  Haven  &  Hartford  Railroad  began  operating  this  property  on  July  1,  1893. 

The  obligations  of  the  Old  Colony  Railroad  Company,  on  account  of  the  lines  leased  by  it,  are 
assumed  by  The  New  York,  New  Haven  &  Hartford  Railroad  only  during  the  continuance  of  its 
lease  of  the  parent  road. 

2.  Boston  &  Providence  Raikoad 

The  Boston  &  Providence  Railroad  was  chartered  in  July,  1831.  Its  line  was  opened  in  August, 
1835,  between  Boston  &  Providence.  It  was  leased  to  the  Old  Colony  Railroad  from  April  1,  1888, 
for  99  years,  at  an  annual  rental  of  10%  on  the  capital  stock  outstanding,  and  a  cash  bonus  of 
$1,300,000.  From  this  cash  bonus,  a  $32.50  dividend  per  share  was  paid  May  2,  1888.  The  above 
lease  will  expire  April  1,  1987. 

3.   Providence  &  Worcester  Railroad 

The  Providence  &  Worcester  Railroad  was  chartered  in  November,  1845,  as  a  consolidation  of 
two  companies  of  the  same  name,  both  chartered  in  1844.  Its  main  line  from  Providence  to  Wor- 
cester was  open  for  traffic  in  1847.  Its  property  was  leased  to  The  New  York,  New  Haven  &  Hartford 
Railroad  for  99  years  from  July  1,  1892.  The  annual  rental  was  fixed  at  10%  of  the  capital  stock, 
interest  on  the  company's  funded  debt  and  nominal  charges  for  organization  expenses.  The  above 
lease  expu-es  July  1,  1991. 

4.  Norwich  &  Worcester  Railroad 

The  Norwich  &  Worcester  Railroad  was  chartered  in  June,  1836,  under  the  laws  of  Connecticut 
and  Massachusetts,  as  a  consolidation  of  the  Boston,  Norwich  &  New  London  Railroad,  and  the 
Worcester  &  Norwich  Railroad  Companies.  Its  property  was  leased  to  The  New  England  Railroad 
for  99  years  from  February  9,  1869.    This  lease  was  assumed  by  The  New  York,  New  Haven  &  Hart- 

[517] 


ford  Railroad  upon  the  merging  of  The  New  England  Railroad  in  1908.    The  annual  rental  is  equal 
to  interest  on  the  company's  bonds  and  8%  on  its  preferred  stock. 

5.   Harlem  River  &  Port  Chester  Railroad 

The  Harlem  River  &  Port  Chester  Railroad  was  constructed  from  cash  advanced  by  The  New 
York,  New  Haven  &  Hartford  Railroad  Company,  for  which  they  received  $2,000,000  First  Mortgage 
7%  Bonds  dated  October,  1873,  on  which  they  guarantee  the  principal  and  interest.  The  road  was 
open  for  business  November  24,  1873,  and  leased  for  99  years  subject  to  direct  operation  by  The  New 
York,  New  Haven  &  Hartford  Railroad. 

6.  Holyoke  &  Westfield  Railroad 

The  Holyoke  &  Westfield  Railroad  was  opened  for  business  in  October,  1871,  and  leased  at  that 
time  to  the  New  Haven  &  Northampton  Company,  which  was  merged  into  the  New  Haven 
System  October  26,  1910.  By  the  terms  of  the  above  lease,  the  New  Haven  &  Northampton 
Company  paid  as  rental  50%  of  gross  earnings  with  a  minimum  guaranty  of  $8,000  a  year,  but  on 
June  30,  1908,  the  lease  was  amended  so  as  to  provide  in  perpetuity  for  a  fixed  rental  of  $46,000  and 
taxes. 

7.   Providence,  Warren  &  Bristol  Railroad 

The  Providence,  Warren  &  Bristol  Railroad  was  leased  to  the  Old  Colony  Railroad  for  95  years 
and  9  months  from  July  1,  1891,  at  an  annual  rental  of  5%  on  the  common  stock  of  the  company, 
5%  on  the  preferred  stock  for  ten  years  and  6%  for  each  year  during  the  remainder  of  the  lease, 
also  all  interest  charges  and  taxes,  and  $500  for  organization  expenses.  This  lease  should  expire 
February  1,  1997. 

8.   Chatham  Railroad 

The  Chatham  Railroad  was  open  for  business  November  21,  1887,  and  was  leased  to  the  Old 
Colony  Railroad  at  an  annual  rental  equivalent  to  interest  on  the  company's  funded  debt,  taxes 
and  organization  expenses.    The  date  of  this  lease  was  January  5,  1888. 

A  new  lease  of  the  property  of  the  Chatham  Railroad  was  made  effective  as  of  January  1,  1911, 
for  a  term  of  81  years  and  2  months.  This  lease,  with  The  New  York,  New  Haven  &  Hartford  Rail- 
road, supersedes  the  original  one  made  with  the  Old  Colony  Railroad  in  1888. 

ELECTRIC  RAILWAYS 

When  President  Mellen  assumed  the  direction  of  The  New  York,  New  Haven  &  Hartford  Railroad, 
the  trolleys  of  New  England  were  developing  in  a  most  haphazard  fashion.  Upon  the  New  Haven 
advent  on  the  scene  of  action,  it  determined  to  convert  these  independent  trolley  lines  to  a  function 
of  greater  usefulness,  that  of  being  tributary  to  the  steam  roads.  The  carrying  out  of  this  policy 
led  to  the  creation  of  holding  companies  by  means  of  which  the  New  Haven  might  indirectly  at 
least  carry  out  its  ultunate  plans.  Through  the  agency  of  these  holding  companies  not  only  in  Massa- 
chusetts, but  also  in  Connecticut  and  Rhode  Island,  comparative  order  was  brought  out  of  chaos, 
and  electric  traction  service  was  so  organized  and  extended  that  transportation  facilities  were 
materially  increased. 

The  holding  company  created  to  operate  the  New  Haven  trolley  lines  in  Massachusetts  was 
the  New  England  Investment  &  Security  Company,  a  voluntary  association  organized  in  June, 
1906.     This   company   took   over    the    street    railway    properties    in    Massachusetts,    which    had 

[  518  ] 


])revionsly  l)een  controlled  by  The  Consolidated  Railway  Company  (which  was  merged  into 
The  New  York,  New  Haven  &  Hartford  System  May  31,  1907).  The  New  England  Invest- 
ment &  Security  Company  controlled,  October  1,  1909,  through  ownership  of  all  or  a  majority  of 
their  stocks,  the  following  companies :  — 

Hartford  &  Worcester  Street  Railway  Company 

Central  Massachusetts  Electric  Company 

Marlborough  &  Westborough  Street  Railway  Company 

Milford,  Attleborough  &  Woonsocket  Street  Railway  Company 

Springfield  Railway  Companies 

Springfield  Street  Railway  Company 

Worcester  &  Blackstone  Valley  Street  Railway  Company 

Worcester  Consolidated  Street  Railway  Company 

Worcester  &  Holden  Street  Railway  Company 

Worcester  Railways  &  Investment  Company 

Worcester  &  Southbridge  Street  Railway  Company 

Uxbridge  &  Blackstone  Street  Railway  Company 

The  Supreme  Judicial  Court  of  Massachusetts  handed  down  a  decree  in  May,  1908,  enjoining 
The  New  York,  New  Haven  &  Hartford  Railroad  Company  from  holding  directly  or  indirectly  the 
stocks  of  any  Massachusetts  Street  Railway  after  July  1,  1909.  The  New  Haven  thereupon  disposed 
of  its  holdings  in  the  New  England  Investment  &  Security  Company,  and  for  the  time  being  its 
trolley  amalgamations  in  that  Conamonwealth  ceased. 

In  July,  1910,  The  New  York,  New  Haven  &  Hartford  Railroad  acquired  by  special  authority 
of  the  Massachusetts  Legislature  the  control  of  the  Berkshire  Street  Railway,  which  but  two  months 
before  had  absorbed  the  Pittsfield  Electric  Street  Railway.  In  January,  1912,  authority  was  asked 
from  the  Massachusetts  Legislature  to  form  a  new  corporation  to  be  known  as  the  Worcester,  Spring- 
field &  Berkshire  Street  Railway  Company  to  take  over,  consolidate  and  operate  all  street  railways 
formerly  controlled  by  the  New  Haven,  but  of  late  (owing  to  the  above-mentioned  decree  of  the 
Supreme  Court  of  Massachusetts  in  May,  1908)  held  by  the  New  England  Investment  &  Security 
Company  and  the  Berkshire  Street  Railway  Company.  The  New  York,  New  Haven  &  Hartford 
Railroad  proposed  to  hold  all  the  common  stock  of  the  new  company  and  guarantee  its  dividends, 
the  liqviidation  value  of  the  preferred  shares,  and  the  principal  and  interest  of  bonds  and  other 
obligations.    Up  to  the  date  of  publication  this  authority  had  not  been  given  by  the  Legislature. 

The  Connecticut  properties  of  the  New  Haven  System  are  held  and  operated  by  the  Connecti- 
cut Company,  incorporated  in  1907,  whose  $40,000,000  capital  stock  is  all  owned  by  The  New  York, 
New  Haven  &  Hartford  Railroad  and  the  Housatonic  Power  Company.  In  December,  1911,  the 
New  Haven  divested  itself  of  all  its  electric  properties  except  those  used  for  railway  power  purposes, 
by  subleasing  all  its  large  electric  and  gas  companies  in  Connecticut  for  994  years  from  October  1, 
1911,  at  an  annual  rental  of  $365,000,  to  a  new  corporation  called  the  United  Electric  Light  &  Water 
Company  of  Connecticut,  which  it  has  been  said  represents  the  United  Gas  Improvement  Company 
of  Philadelphia. 

The  New  Haven's  operating  company  in  Rhode  Island  is  known  as  the  Rhode  Island  Company, 
which  was  organized  in  June,  1902.  for  the  pin-pose  of  uniting  under  a  single  management  the  street 
railway,  gas  and  electric  properties  of  Providence  and  vicinity.  The  lines  it  operates  serve  the 
cities  and  towns  of  Providence,  Warwick,  Johnston,  Smithfield,  Cumberland,  Barrington,  Coventry, 
Warren,  Bristol,  East  Greenwich,  the  Kingstons,  and  Narragansett.  On  June  30,  1911,  the  com- 
pany leased  the  properties  of  the  Providence  &  Danielson  Railway,  the  Sea  View  Railroad  and  the 
Narragansett  Pier  Railroad  Companies.  The  Rhode  Island  Company,  in  turn,  is  controlled  by  The 
New  York,  New  Haven  &  Hartford  Railroad  Company  through  the  ownership  of  almost  its  entire 
capital  stock. 

A  company  known  as  the  Vermont  Company  has  been  formed  to  operate  traction  lines  in  the 

[519] 


State  of  Vermont.  Its  capital  stock  is  owned  by  the  New  Haven.  This  company  on  June  30,  1911, 
operated  21  miles  of  road  in  and  near  Bennington,  Vermont,  and  in  March  1912  its  property  was 
leased  to  the  Berkshire  Street  Railway  Company  for  99  years. 

ELECTRIFICATION 

Since  1895,  when  electric  traction  was  substituted  for  steam  power  on  the  Nantasket  Beach 
Railroad,  the  company  has  l)rcn  gradually  extending  the  use  of  electricity  to  those  lines  which  could 
be  advantageously  oi)ci;ilf(l  thereby.  An  overhead  trolley  system  has  been  installed  on  the  Provi- 
dence, Warren  &  Bristol  Railroad,  22  miles,  and  the  New  Canaan  Branch  of  The  New  York,  New 
Haven  &  Hartford  Railroad,  8  miles.  The  third-rail  system  is  employed  on  the  Berlin  Branch,  4 
miles,  and  the  electric  section  of  The  New  England  Railroad.  The  complete  electrification  of  the 
New  York  Division  between  New  York  and  Stamford  was  effected  in  Jime,  1908,  and  in  December, 
1911,  the  Directors  of  the  New  Haven  voted  to  authorize  the  electrification  of  the  main  line  between 
Stamford  and  New  Haven,  a  distance  of  39  miles.  This  work  is  in  the  process  of  construction  at 
the  present  time  and  when  completed  will  mean  the  complete  electrification  of  the  main  line  between 
New  York  City  and  New  Haven. 

STEAMSHIP  LINES 

The  holdings  of  the  New  Haven  in  steamboat  properties  have  been,  until  lately,  vei\y  extensive, 
through  the  New  England  Na\'igation  Company  (whose  entire  stock  is  owned  by  the  former)  and  the 
Hartford  &  New  York  Transportation  Company.  These  holdings  have  changed  hands  so  much  that 
the  situation  is  a  somewhat  complicated  one. 

The  New  England  Navigation  Comi)any  was  incori)orated  in  Connecticut  in  1904  as  the  Colonial 
Commercial  Company.  In  1905  it  acquired  control  of  the  Old  Colony  Steamboat  Company.  In 
October,  1906,  it  purchased  a  majority  of  the  capital  stock  of  the  Hartford  &  New  York  Transportation 
Company,  and  early  in  1907  it  acquired  the  entire  capital  stock  of  the  Boston  &  Pliiladelijliia  Steam- 
ship Company,  operating  a  line  of  steamers  between  Boston,  Providence  and  Philadelphia,  in  con- 
nection with  the  rail  lines  of  The  New  York,  New  Haven  &  Hartford  Railroad  Company.  Shortly 
after  this  (March,  1907)  an  agreement  was  entered  into  with  the  Merchants  &  Miners  Transporta- 
tion Company  for  the  acquisition  of  a  half  interest  in  the  stock  of  that  company,  and  since  then  close 
traffic  relations  have  been  maintained  between  these  two  companies. 

On  January'  31, 1908,  the  New  England  Navigation  Company  purchased  the  assets  and  property 
of  the  Providence  Seciu'ities  Company,  a  holding  company  in  Rhode  Island,  and  early  in  1911  the 
New  Bedford,  Martha's  Vineyard  &  Nantucket  Steamboat  Company  was  acquired  by  the  New 
Haven  interests  and  put  under  operation  by  the  New  England  Navigation  Company. 

The  New  England  Navigation  Companj',  imtil  recently,  owned  a  fleet  of  upwards  of  30  steamers 
(among  those  the  palatial  steamers  "Commonwealth,"  "Priscilla,"  "Puritan,"  "Plymouth,"  "Pil- 
grim," etc.)  with  a  gross  tonnage  of  approximately  90,000  tons.  Its  entire  physical  property  was 
sold  July  1,  1912,  owing  to  legislation  passed  by  Congress,  to  the  New  England  Steamship  Com- 
pany, whose  capital  stock  and  First  Mortgage  Bonds  were  tendered  in  payment  for  the  same.  The 
routes  covered  include  the  Fall  River  Line,  the  Providence  &  Block  Island  Line,  the  Norwich  Line 
(between  New  York  and  New  London) ,  the  New  York-New  Haven  Line,  the  New  York  &  Bridge- 
port Line  and  the  New  York  &  Providence  Line. 

The  Hartford  &  New  York  Transportation  Company,  owned  l)y  the  New  England  Navigation 
('ompany,  was  incorporated  in  Connecticut  in  February,  1877.  The  company  owns  7  steamboats, 
7  tow  boats  and  30  barges,  with  a  capacity  of  from  300  to  1,500  tons,  and  operates  a  line  between 
Hartford  and  New  York.  In  March,  1908,  the  company  acquired  the  property  of  the  United  States 
Transportation  Company,  which  was  also  a  holding  company  of  The  New  York,  New  Haven  & 

[  520  ] 


Hartford  Railroad.  The  former  company  controls  the  Joy  Line  and  the  Neptune  Line,  and  until 
recently  controlled  the  INIaine  Steamship  Company,  which  was  included  in  the  consolidation  plans 
of  the  Eastern  Steamship  Corporation. 

PROPERTY 

At  the  close  of  the  company's  fiscal  year  ending  June  ^50,  1012,  The  New  York.  New  Haven  & 
Hartford  Railroad  Company  operated  2,091.5)0  miles.  Of  this  amount  l.'JlJS.o^  miles  were  owned 
in  fee,  757.84  miles  represented  road  operated  under  leases,  and  95.54  miles  operated  under  trackage 
rights.  The  main  lines  of  the  railroad  extend  from  Woodlawn  Jiniction,  New  York,  to  Providence, 
and  from  Boston,  Massachusetts,  to  Hopewell  Jiniction,  New  Y'ork.  Many  important  branches 
connect  with  these  main  lines,  and  tap  practically  all  the  railroad  territory  of  the  States  of  Con- 
necticut, Rhode  Island  and  Southern  and  Central  IMassachusetts. 

Together  with  the  New  York,  Ontario  &  AVesteru  Railroad,  whose  lines  connect  New  York  with 
the  Great  Lakes  at  Oswego,  the  Boston  &  INIainc  Railroad  and  the  Maine  Central  Railroad  which 
serve  the  territory  of  INIaine,  New  Hampshire  and  Northern  Massachusetts,  and  the  Rutland  Rail- 
road in  Vermont,  the  New  Haven  System,  embracing  its  leased  and  controlletl  lines,  does  practically 
the  entire  railroad  transportation  business  of  New  England.  The  above  roads,  although  controlled 
by  the  New  Haven,  are  operated  independently. 

CAPITALIZATION 

Taken  from  the  official  report  of  the  company  for  the  year  i-nded  June  30,  1912,  we  find  the 
following  capital  figures  for  The  New  York,  New  Haven  &  Hartford  Railroad  and  leased  roads: 

Capital  stock $179,583,100 

Total  funded  debt 205,067,104 

$384,650,204 
Rentals  capitalized  at  5%      145,190,800 

Gross  capitahzation $529,841,004 

Less  securities  owned 221,487,967 

Net  capitalization $308,353,037 

Net  capital  per  mile  operated $147,466 

Average  miles  operated 2,091.90 

Net  income  to  net  capital 11-2% 

Fixed  charges  to  net  income 61.2% 

Margin  of  safety 38.8% 

As  will  be  seen  by  the  foregoing,  the  total  capital  outstanding  of  The  New  York,  New  Haven  & 
Hartford  Railroad  proper  is  nearly  $385,000,000.  Based  on  the  number  of  miles  owned  in  fee,  the 
amount  of  capital  outstanding  per  mile  amounts  at  the  present  time  to  nearly  $311,000.  This  com- 
pares with  the  same  relative  figure  of  the  following  roads: 

New  Y^ork  Central  &  Hudson  River  Railroad  .    .    .     $502,359 
Boston  &  Maine  Railroad 122,348 

During  the  past  fiscal  year  rental  charges  consumed  $7,259,540  of  income.  Capitalizing  this 
at  tlie  rale  of  5%,  the  resultant  amount  is  in  excess  of  $145,000,000,  which  brings  the  total  gross 

[m  J 


capitalization  of  the  New  Haven  proper  and  leased  roads  up  to  approximately  $530,000,000,  or 
nearly  $253,390  per  mile  of  road  actually  operated. 

Assets  in  the  shape  of  investment  securities  carried  on  the  company's  balance  sheet  at  over 
$221,000,000,  have  tended  to  offset  this  enormous  item.  The  net  capital  per  mile  of  road  operated 
was  $147,466,  as  compared  with  $79,119  per  mile,  the  net  capitalization  of  the  Boston  &  Maine, 
$154,374  (1911)  of  the  New  York  Central,  and  $145,150  of  the  New  York,  Ontario  &  Western 
Railroad. 

From  the  above  comparative  figures,  it  would  seem  that  The  New  York,  New  Haven  &  Hartford 
Railroad  was  more  heavily  capitalized  than  other  systems  of  the  same  class,  but  when  considered  on 
the  basis  of  its  earnings,  the  showing  is  much  better.  For  the  fiscal  year  of  1912,  The  New  York, 
New  Haven  &  Hartford  reported  gross  earnings  of  over  $31,000  per  niUe,  a  record  for  the  system. 
The  New  York  Central's  gross  earnings  were  $27,427  per  mile,  while  the  Boston  &  Maine  was  able 
to  show  but  $20,495,  and  the  Ontario  &  Western  slightly  over  $15,000. 

The  fact  is  further  attested  by  the  percentage  of  net  earnings  to  net  capitalization.  In  1912  the 
net  earnings  of  The  New  York,  New  Haven  &  Hartford  Railroad  amounted  to  11.2%  on  its  net 
capitalization  as  against  approximately  7.8%  for  the  New  York  Central,  6.6%  for  the  Boston  & 
Maine,  and  less  than  3%  in  the  case  of  the  New  York,  Ontario  &  Western. 

In  1912  fixed  charges  of  the  New  Haven  consumed  61%  of  the  total  net  income,  leaving  a 
factor  of  safety  on  the  underlying  securities  and  guarantees  of  the  road  of  39%.  The  margin  of 
safety  on  the  underlying  securities  of  the  New  York  Central,  as  shown  by  its  1911  figures,  is  approxi- 
mately 33%,  and  while  the  New  York,  Ontario  &  Western  shows  an  average  margin  of  safety  over 
ten  years  of  43%,  the  Boston  &  Maine  presents  barely  a  20%  margin. 

In  regard  to  the  capitalization  of  the  New  Haven,  a  word  ought  to  be  said  about  the  remark- 
able increase  which  has  obtained  in  the  same  since  1906.  The  following  shows  the  increase  in 
capitalization : 

Fiscal  year  Stock  Funded  debt  Notes 

1912 $179,583,100  $205,067,104  $30,000,000 

1906 83,357,100  112,543,725 


Increase  $96,226,000  $92,523,399  $30,000,000 

Totalling  the  increase  in  capital  stock,  funded  debt  and  notes  outstanding,  we  find  that  the 
capital  account  of  the  system  has  been  augmented  by  over  $218,700,000.  That  this  enormous  in- 
crease in  capital  charges  is  primarily  due  to  the  expansion  policy  of  the  road  which  has  been  carried 
on  in  the  past,  will  be  shown  by  an  analysis  of  the  balance  sheet  of  the  system  during  the  five  years 
in  question.  Aside  from  over  $63,000,000,  which  has  gone  from  year  to  year  into  betterments  and 
additions  to  the  steam  railroad,  and  which  has  been  charged  to  capital,  about  $170,000,000  has  been 
spent  in  outside  enterprises  since  1906.  These  comprise  electric  trolley  lines,  gathered  into  the  Con- 
necticut and  Rhode  Island  holding  companies;  expansion  of  water  traffic  in  the  hands  of  the  New 
England  Navigation  Company,  investments  in  the  Boston  Railroad  Holding  Company,  which  means 
the  ownership  of  the  Boston  &  Maine  and  the  Maine  Central  Railroad  Companies  and  their  sub- 
sidiaries; large  outlays  on  the  New  York,  Westchester  &  Boston  Railway  now  nearing  completion; 
part  ownership  of  the  Rutland  Railroad  Company;  and  various  other  minor  undertakings. 

A  large  part  of  the  amount  thus  expended  is  being  carried  at  the  present  time  with  no  income 
returns.  This  is  proving  a  heavy  burden  and  yet  it  has  been  shouldered  by  the  system  as  a  whole 
with  but  a  small  deficit  in  1911  and  an  actual  surplus  in  1912.  The  load  has  been  further  increased 
by  the  fact  that  investments  which  are  showing  earning  power  are  not  paying  for  themselves  in 
interest  returns  —  as  is  the  case  with  the  New  York,  Ontario  &  Western  and  the  Boston  &  Maine 
holdings.  The  total  return  on  all  the  investments  of  the  system  amounted  to  but  a  little  over 
$6,750,000  in  1912,  which  is  less  than  4%  on  the  capital  invested,  and  the  money  so  invested  costs 
the  company  probably  more  than  ^Yf/o-  Furthermore  the  capital  stock  has  paid  an  8%  dividend, 
up  to  June,  1913  (when  the  rate  was  reduced  to  6%),  and  in  six  years  this  stock  has  been  increased 
over  $96,000,000. 

[522] 


CHARACTER   OF  TRAFFIC 

The  most  noteworthy  fact  about  the  New  Haven  System,  and  one  which  differentiates  it  from 
most  of  the  large  systems,  is  that  its  passenger  earnings  nearly  equal  its  freight  earnings;  in  other 
words,  the  freight  business  has  averaged  for  the  past  ten  years  but  49%  of  the  total  traffic  of  the 
system. 

The  steady  increase  in  passenger  traffic  can  be  shown  by  a  comparison  of  the  earnings  and  pas- 
senger density  over  the  past  decade.  In  1900  passenger  earnings  amounted  to  $16,750,000.  In  1910 
they  had  risen  to  $24,825,000,  and,  during  the  fiscal  year  of  1912,  they  still  further  increased  to  over 
$26,800,000.  The  passenger  density  showed  a  proportional  increase,  rising  from  464,182  in  1900  to 
745,531  in  1912.  No  other  large  railroad  system  in  the  country  has  ever  reported  a  similar  volume 
of  passenger  business;  even  the  New  York  Central  and  the  Pennsylvania  Systems,  which  are  large 
passenger  carriers,  showed,  with  record  figures  in  1911,  passenger  densities  of  only  513,532  and  428,777 
respectively. 

Freight  traffic,  likewise,  increased  steadily  and  at  about  the  same  proportion  as  passenger 
traffic.  Total  freight  earnings  in  1900  were  approximately  $19,450,000.  In  1910  they  had  increased 
to  slightly  over  $30,000,000,  and  during  the  fiscal  year  of  1912  bettered  the  high  figure  of  1910  by 
over  $2,000,000.  Freight  density  increased  from  657,709  in  1900  to  1,120,535  in  1912.  In  this 
respect  the  figures  of  the  New  Haven  compare  at  a  disadvantage  with  the  New  York  Central  and 
Pennsylvania  Systems,  which  have  averaged  since  1900  better  than  2,300,000  and  4,400,000 
respectively. 

The  annual  reports  of  the  company  do  not  classify  its  freight  tonnage,  but  it  is  well  known  that 
this  is  widely  diversffied.  Manufactured  and  miscellaneous  articles  make  up  the  largest  proportion 
of  the  total,  and  as  manufacturing  interests  grow  in  the  New  England  States  there  should  be  a  cor- 
responding growth  in  that  item  of  traffic. 

The  fact  that  a  large  proportion  of  the  freight  traffic  is  made  up  of  miscellaneous  articles,  the 
cost  of  handling  which  is  liigh,  results  in  an  extremely  high  freight  rate.  The  average  for  the  ten 
years,  ending  Jime  30, 1912,  is  1.41  cents  per  ton  mile,  while  the  Boston  &  Maine  average,  considered 
high,  is  only  1.11  cents.  The  Boston  &  Albany  reports  .63  cents  per  ton  mile,  and  the  Pennsylvania 
but  .59  cents. 

EARNINGS 

Hand  in  hand  with  the  steady  increases  shown  in  passenger  and  freight  density,  has  gone  a  re- 
markable record  of  earnings  during  the  past  few  years.  Below  is  a  statement  of  the  gross  and  net 
earnings  of  the  company  based  on  the  average  miles  operated  for  the  years  1906  to  1912  inclusive: 


Fiscal 

Average 

Gross 

Per  mile 

Net 

Per  mile 

year                      miles 

earnings 

earnings 

1906    .     .     .    2,062 

52,984,332 

$25,695 

$17,761,736 

$8,614 

1907 

2,060 

55,601,936 

26,991 

17,751,855 

8,617 

1908 

2,047 

53,050,147 

25,915 

14,836,590 

7,247 

1909 

2,043 

54,347,631 

26,602 

18,267,324 

8,941 

1910 

2,043 

60,693,668 

29,708 

22,004,452 

10,771 

1911 

2,041 

62,153,435 

30,452 

21,254,802 

10,417 

1912 

2,091 

64,933,065 

31,053 

22,829,047 

10,918 

As  will  be  seen  by  the  foregoing  figures,  every  year  with  the  exception  of  1908,  when  there  was 
only  a  nominal  set  back,  has  been  marked  by  an  increase  in  gross  earnings.  During  the  fiscal  year 
of  1912  the  largest  business  in  the  company's  history  was  reported.  It  is  also  gratifying  to  note  that 
this  increase  in  gross  earnings  was  not  so  much  the  result  of  increasing  rates  (in  fact  they  have  tended 
to  decrease  rather  than  increase)  as  an  increase  in  the  volume  of  business  done. 

[523] 


MAINTENANCE 


Maintenance 

Way 

Equipment 

$5,614,978 

$5,668,524 

5,479,089 

5,638,784 

5,983,826 

6,913,169 

6,130,606 

5,906,357 

7,132,376 

6,461,772 

6,980,036 

7,193,424 

6,829,361 

8,046,992 

Total 

Total  maintenance 

maintenance 

per  mUe 

$11,283,502 

$5,472 

11,117,873 

5,397 

12,896,995 

6,300 

12,036,963 

5,892 

13,594,148 

6,654 

14,173,450 

6,940 

14,876,353 

7,114 

The  maintenance  records  of  the  company  indicate  that  during  the  past  six  years  the  New  Haven 
has  followed  a  liberal  policy  in  the  maintenance  of  its  property.  Tabulated  below  are  the  amounts 
spent  for  maintenance  of  way  and  equipment,  also  based  on  the  average  miles  operated  for  the  years 
1906  to  1912  inclusive: 

Fiscal 
year 

1906 
1907 
1908 
1909 
1910 
1911 
1912 

The  above  figiu-es  show  a  general  increase  from  year  to  year,  the  only  curtailment  appearing  in 
1909.  The  figures  of  1908  and  1909,  in  the  face  of  a  general  depression,  were  more  than  covered  by 
maintenance  charges  during  1911  and  1912.  These  latter  figines  are  high  records  of  the  company, 
and  if  maintained  would  place  the  company  in  the  first  rank  among  roads  that  spend  large  amounts 
for  upkeep. 

ADDITIONS   AND   BETTERMENTS 

Din-ing  the  seven  years  ending  1912,  $78,000,000  have  ])een  spent  by  The  New  York,  New  Haven 
&  Hartford  for  additions  and  betterments,  as  follows: 

Year  Equipment  Betterments  Total 

1906 $3,711,731  $4,852,685  $8,564,416 

1907 4,062,561  10,688,679  14,751,241 

1908 16,070,962  5,417,411  21,488,373 

1909 7,186,813  1,484,039  8,670,852 

1910 3,019,806  1,177,264  4,197,070 

1911 5,987,555  9,456,085  15,443,640 

1912 3,389,163  1,464,033  4,853,196 

Below  is  a  statement  of  the  various  accotmts  against  which  the  above-named  betterments  were 
charged  during  the  years  in  question: 


Year 

1900 
1907 
1908 
1909 
1910 
1911 
1912 


Income 
$3,000,000 


Pro6t  and  Loss 

$5,564,416 
3,000,000 
1,579,264 


Equipment 

$4,062,561 
15,555,525 
7,182,974 
1,953,476 
5,600,361 
3,389,163 


Replacement 


$1,066,330 
387,195 


Property 

$7,688,679 
4,353,584 
1,487,878 
1,177,264 
9,456,085 
1,464,033 


$3,000,000       $10,143,680       $37,744,060         $1,453,525       $25,627,523 

Income $3,000,000 

Profit  and  Loss 10,143,680 

Equipment 37,744,060 

Replacement 1,453,525 

Property 25,627,523 


Total 77,968,788 

[624] 


Combining  the  amount  charged  for  the  purchase  of  new  equipment  with  that  which  was  spent 
upon  property,  shows  that  over  $63,370,000  was  charged  during  the  above  period  to  capital.  As  a 
result,  the  New  Haven  now  owns  1,238  miles  of  railroad  and  2,641  miles  of  track,  as  compared  with 
628  miles  of  railroad  and  1,393  miles  of  track  in  1906.  It  has  electrified  the  system  between  Woodlawn 
and  Stamford,  purchased  new  electric  equipment  and  built  power  houses.  It  actually  owns  nearly 
38,000  freight  and  other  cars,  over  2,100  passenger  service  cars,  and  1,098  locomotives  as  compared 
with  15,500  freight  cars,  1,500  passenger  service  cars  and  808  locomotives  which  were  owned  in  1906. 
It  has  eliminated  grade  crossings,  made  a  tunnel  at  Providence  and  a  cut  at  New  Haven,  completed 
the  Harlem  River  &  Port  Chester,  a  six-track  railroad  now  being  electrified,  and  spent  over  $2,600,000 
on  new  bridges. 

DIVIDENDS 

The  New  Haven  has  had  an  enviable  dividend  record.  After  its  consolidation  and  reorganiza- 
tion in  1872,  it  paid  10%,  and  this  rate  was  continued  with  but  one  exception  —  the  passing  of  one 
quarterly  payment  in  1890  —  through  the  depression  of  1873-77  down  to  1895.  From  that  time  up 
to  June,  1913,  8%  was  paid.  The  present  rate  is  6%.  This  record  has  been  maintained  in  the 
face  of  large  increases  in  capital  stock  and  in  spite  of  the  large  amount  of  investment  which  is  being 
carried  in  the  capital  account  without  return . 

STATISTICS 

On  the  following  page  are  given  capitalization,  earnings  and  traflBc  statistics  of  The  New  York, 
New  Haven  &  Hartford  Railroad,  based  on  the  average  miles  operated,  for  the  year  1900,  and  the 
years  1905  to  1912  inclusive: 


[  525  ] 


THE    NEW  YORK,   NEW  HAVEN    &  HARTFORD   RAILROAD 


Fiscal 

Capital 

Funded 

Rentals 

Gross 

Owned  by 

Net 

Average 

Extra 

year 

stock 

debt 

@5% 

capital 

company 

capital 

miles 
operated 

2,038 

main 
track 

1900 

$26,832 

$12,677 

$43,942 

$83,451 

$11,555 

$71,896 

844 

1905 

38,554 

17,922 

39,873 

96,349 

29,327 

67,022 

2,075 

882 

1906 

40,991 

57,551 

38,172 

136,714 

21,771 

114,943 

2,062 

922 

1907 

47,262 

111,024 

54,416 

212,702 

23.226 

189,476 

2,060 

941 

1908 

47,824 

113,606 

62,192 

223,622 

31,359 

192,263 

2,047 

967 

1909 

48,947 

114,969 

58,097 

222,013 

41,705 

180,308 

2,043 

1,011 

1910 

70,492 

113,816 

66,922 

251,230 

102,619 

148,611 

2,043 

1,015 

1911 

87,603 

104,374 

62,244 

254,221 

100,279 

153,942 

2,041 

1,039 

1912 

85,883 

98,071 

69,436 

253,390 

105,924 

147,466 

2,091 

1,135 

Fiscal 

Gross 

Maintenance          Transportation         Net 

Other 

Total 

Fixed 

Surplus 
available 

year 

operating 

and  general       operating          income 

net 

charges 

revenue 
$19,786 

Way          Equipment        ex, 
$2,636           $2,318           $8 

aense             revenue 

$268 

income 
$6,206 

for  dividends 

1900 

,894             $5,938 

$3,936 

$2,270 

1905 

24,087 

2,490 

2,451           12,325               6,821 

589 

7,410 

4,175 

3,235 

1906 

25,695 

2,723 

2,749           11,609               8,614 

1,055 

7,669 

4,729 

4,940 

1907 

26,991 

2,660 

2,737           12,977               8,617 

3,072 

11,689 

7,372 

4,317 

1908 

25,915 

2,923 

3,377           12,368               7,247 

4,063 

11,310 

8,739 

2,571 

1909 

26,602 

3,001 

2,891           11,769               8,941 

4,626 

13,567 

9,931 

3,636 

1910 

29,708 

3,491 

3,163           12,283             10,771 

5,042 

15,813 

10,527 

5,286 

1911 

30,452 

3,419 

3,523           13,093             10,417 

5,182 

15,599 

10,114 

5,485 

1912 

31,053 

3,266 

3,848           13,021             10,918 

5,591 

16,509 

10,107 

6,402 

Fiscal 

Divi- 

Other          SurpI 

us       Operatmg 

Conducting 

Total 

Fked            Gross 

Net 

Per  cent 

year 

dends           charges 

expenses 

transporta- 

mamte- 

charges         earnings       income 

earned  on 

to 

income 

to  gross 

tion  to 

nance  to 

to  gross          tc 

gross        to  net 

capiUl 

earnings 

gross 

gross 

earnings          capital 

capital 

stock 

$194 

eammgs 

eammgs 

1900 

$2,076 

69.94% 

44.92% 

25.0% 

19.8%         23.8% 

8.5% 

8.3% 

1905 

3,084 

151 

71.72 

51.13 

20.6 

17.3            25.0 

11.0 

8.3 

1906 

3,136 

n,613            191 

66.49 

45.17 

21.3 

18.4            18.7 

8.4 

12.0 

1907 

3,352 

965 

68.02 

48.07 

20.0 

27.3             12.6 

6.1 

9.1 

1908 

3,802 

1,231 

*         72.03 

47.75 

24.3 

33.7             11.5 

5.8 

5.4 

1909 

3,859 

223 

*         66.38 

44.24 

22.1 

37.3             12.0 

7.5 

7.4 

1910 

4,777 

509 

63.74 

41.35 

22.4 

35.4             11.8 

10.6 

7.5 

1911 

6,103 

618 

*         65.87 

43.07 

22.8 

33.2             11.9 

10.1 

6.2 

1912 

6,846 

444 

*         64.95 

41.87 

23.1 

32.5             12.2 

11.2 

7.4 

Fiscal 

Train 

Maintenance 

Conducting 

Train          Rate  per 

mUe 

Freight 

Train 

Freight 

Passenger, 

year 

mile 

per  revenue 

transporta- 

mile 

density 

load 

toaU 

freight 

earnings 

train  mile 

tion  per       earnings         Per 

Per 

revenue     traffic 

and 

(gross) 

revenue 

(net)      passenger 

ton 

tons 

company 

V 
$2.00         $ 

Vay      Equipment 

train  mile 

$.015 

209 

48% 

1900 

267         $.235 

$.901 

5.602         $.018 

657,709 

15.527 

1905 

2.16 

225 

220 

1.107 

.612           .017 

.014 

839,959 

223 

49 

19.598 

1906 

2.27 

240 

243 

1.027 

.762           .017 

.014 

915,909 

236 

50 

22,102 

1907 

2.30 

227 

233 

1.109 

.736           .016 

.014 

935,761 

238 

50 

23,034 

1908 

2.30 

260 

300 

1.101 

.645           .016 

.014 

873,311 

243 

48 

33.211 

1909 

2.48 

280 

270 

1.098 

.834           .016 

.014 

916,504 

271 

49 

37.834 

1910 

2.66 

313 

283 

1.100 

.965           .016 

.014 

1,039,980 

293 

50 

39,417 

1911 

2.63 

295 

305 

1.132 

.900           .017 

.0139 

1,068,866 

289 

42 

42,147 

1912 

2.60 

280 

330 

1.116 

.935           .017 

.0137 

1,120,535 

292 

49 

41,872 

*  Deficit. 

[526] 

BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  The  New  York,  New  Haven 

&  Hartford  Railroad  System,  together  with  the  bases  on  which  they 

have  sold  during  the  decade  ending  December  31,  1912: 


THE    NEW   YORK,  NEW   HAVEN    &   HARTFORD    RAILROAD 
Harlem  River  &  Port  Chester  First  Gold  4s 

Dated  May  2,  1904  Maturing  May  1,  1954 

Interest  payable  May  1  and  November  1  at  the  Lincoln  National  Bank,  New  York,  and 

First  National  Bank,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Exchangeable  for  registered  bonds  in  denomination  of  $10,000. 

Authorized  $15,000,000  Outstanding  $15,000,000 

Security:  The  above  bonds  are  a  direct  obligation  of  The  New  York,  New  Haven  &  Hartford  Railroad 

Company  and  are  secured  by  a  first  mortgage  on  all  the  property  and  franchises  of  the  Harlem 
River  &  Port  Chester  Railroad  including  the  road  from  the  Harlem  River  to  the  junction  with 
the  main  line  of  the  former  at  New  Rochelle,  11.17  miles  of  first  track. 

Trustee:  United  States  Trust  Company,  New  York. 

Tlie  Harlem  River  &  Port  Chester  Railroad  Company  was  chartered  in  the  State  of  New  York 
in  1867,  and  was  leased  for  99  years  from  September  29,  1873,  to  The  New  York,  New  Haven  &  Hart- 
ford Railroad  Company,  which  owns  its  entire  $1,000,000  capital  stock. 

These  bonds  sold  in  1909  on  a  4.00  basis  (bid) 

1910  4.00  to  4.03  basis 

1911  4.05 

1912  4.05 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massa- 
chusetts, Connecticut  and  Rhode  Island. 


NAUGATUCK  RAILROAD 
Debenture  SJ^s 

Dated  October  1,  1902  Maturing  October  1,  1930 

Interest  payable  April  1  and  October  1  at  New  Haven. 

Coupon  bonds  of  $1,000. 
Authorized  $2,000,000  Outstanding  $234,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Naugatuck  Railroad  Company  but  are  not 

secured  by  a  mortgage. 

They  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad  Company. 

For  history,  see  Naugatuck  Railroad  First  Mortgage  Gold  4s,  on  page  533. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in    New  Hamjjshire,  Massachusetts 
and  Connecticut. 


[  528  ] 


NEW   YORK,  PROVIDENCE    &   BOSTON   RAILROAD 
General  Mortgage  4s 

Dated  April  1,  1892  Maturing  April  1,  1942 

Interest  payable  April  1  and  October  1  at  the  Central  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000. 
Registered  bonds  of  $1,000. 

Authorized  $4,000,000  Outstanding  $1,000,000 

Per  mile  .    .  10,129 

Provisions  of      Although  $4,000,000  is  the  authorized  limit  of  this  i.ssue,  the  listing  application  to  the  New 
issue:  York  Stock  Exchange  stated  that  the  balance,  $3,000,000,  would  not  be  issued. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  62  miles  of  double  track  road  extending 

from  Providence,  R.  I.,  to  New  London,  Conn.,  and  upon  single  track  branches,  18  miles. 
These  bonds  are  the  only  mortgage  indebtedness  upon  this  portion  of  the  main  line. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

The  New  York,  Providence  &  Boston  Railroad  Company  was  organized  under  the  laws  of  the 
State  of  Rhode  Island  in  June,  1832,  and  under  the  laws  of  the  State  of  Connecticut  in  May,  1832. 
It  was  merged  into  The  New  York,  New  Haven  &  Hartford  Railroad  on  February  13, 1893,  the  latter 
assuming  all  its  bonded  indebtedness  according  to  the  terms  of  the  merger. 

These  bonds  were  quoted  in  1909  on  a  4.03  basis  (bid) 

1910  4.0.5 

1911  4.05 
December,  1912  4.00  (asked) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


HOUSATONIC   RAILROAD 
Consolidated  Mortgage  5s 

Dated  November  1,  1887  Maturing  November  1,  193? 

Interest  i)ayable  May  1  and  November  1. 

Coupon  bonds  of  $1,000,  registeralile  as  to  jirincipal. 

Authorized  $3,000,000  Outstanding  $2,839,000 

Per  mile  .    .  32,200 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Bridgeport  to 

the  northerly  boundary  of  the  State  of  Connecticut.     They  are  further  secured  by  a  first 
mortgage  on  the  interests  of  the  company  in  the  leases  of  the  Berkshire  Railroad,  the  Stock- 
bridge  &  Pittsfield  Railroad,  and  the  Danbury  &  Norwalk  Railroad  Companies,   together 
[519] 


with  all  lands,  water  rights,  buildings,  improvements  and  terminal  rights  at  Bridgeport  and 
elsewhere  on  said  railroads.  The  mortgage  also  includes  all  equipment,  franchises,  income 
and  profits.    The  mileage  covered,  exclusive  of  leaseholds,  totals  87.67  miles. 

Trustee :  Treasurer  of  the  State  of  Connecticut. 

The  Housatonic  Railroad  Company  was  incorporated  in  May,  1836,  under  the  laws  of  Connect- 
icut. The  road  was  opened  for  traffic  December  1,  1842.  On  October  18,  18i)'2,  the  company's 
property  was  leased  for  99  years  from  July  1,  1892,  to  The  New  York,  New  Haven  &  Hartford  Rail- 
road Company,  the  latter  agreeing  to  pay  1%  yearly  upon  the  preferred  stock  of  the  lessor  company. 
On  March  28,  1898,  under  special  laws  of  Connecticut,  the  Housatonic  Railroad  Company  was  con- 
solidated with  The  New  York,  New  Haven  &  Hartford  Railroad  Company,  and  these  bonds  were 
assumed  by  the  latter. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


DANBURY   &   NORWALK   RAILROAD 
Consolidated  Mortgage  5s  and  6s 

[  6s  July  1,  1880 
Dated     5s  July  1,  1890  Maturing  July  1,  1920 

I  5s  July  1,  1892 

Interest  payable  January  1  and  July  1  at  New  Haven. 

Coupon  bonds  of  $1,000. 

Authorized  $500,000  Outstanding  $500,000 

Per  mile  .    .       16,600 

Security:  The  above  bonds  are  secured  by  a  mortgage  on  the  Danbury  &  Norwalk  Railroad  Company's 

line  extending  from  Danbury  to  South  Norwalk,  Conn.,  with  branches,  29.59  miles.  The  entire 
property  of  the  company  is  included  under  this  mortgage,  including  depots,  equipment,  now 
owned  or  hereafter  acquired;  except  the  comi^any  reserves  the  right  to  sell  any  property  owned 
by  it  not  necessary  for  the  construction,  operation  or  security  of  its  railway. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

The  Danbury  &  Norwalk  Railroad  Company  was  chartered  in  May,  1849.  It  was  leased  for 
99  years  from  July  1,  1892,  to  The  New  York,  New  Haven  &  Hartford  Railroad  Company  for  the  in- 
terest on  its  bonds  and  5%  on  its  capital  stock.  In  October,  1905,  the  Danbury  &  Norwalk  Railroad 
Company  was  merged  into  The  New  York,  New  Haven  &  Hartford  Railroad  Company,  the  latter 
at  that  time  assuming  all  its  funded  obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


530  ] 


Dated  March  31,  1883 


Aiitliorized  $150,000 


DANBURY    &   NORWALK   RAILROAD 
General  Mortgage  5s 

Interest  payable  April  1  and  October  1  at  New  Haven. 
Coupon  bonds  of  $1,000. 


Maturing  April  1,  19'25 


Outstanding  $150,000 
Per  mile  .    .         4,150 


Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  company's  line  from  Danbury, 

Conn.,  to  tidewater  on  Long  Island  Sound  and  branches,  29.59  miles,  together  with  all  lands, 
buildings,  ecjuipment,  leases,  franchises,  and  all  property  now  owned  or  hereafter  acquired, 
together  with  income  and  profits. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

For  history,  see  page  530. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hamp.shire,  Massachusetts, 
Connecticut  and  Rhode  Island. 


Dated  June  1.  1905 


Authorized  $350,000 


DANBURY    &   NORWALK   RAILROAD 
First  Refunding  Mortgage  4s 

Interest  payable  June  1  and  December  1  at  New  Haven. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Registered  bonds  of  $1,000. 

Coupon  and  registered  bonds  interchangeable  in  $5,000  lots. 


Maturing  June  1,  1955 


Outstanding  $350,000 
Per  mile  .    .        11,600 


Security : 


Trustee : 


The  above  bonds  are  secured  by  a  mortgage  on  the  company's  line  from  Danbury,  Conn.,  to 
tidewater  on  Long  Island  Sound,  and  branches,  29.59  miles,  together  with  all  lands,  appur- 
tenances and  franchises  now  owned  or  hereafter  acquired. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  The  New  York, 
New  Haven  &  Hartford  Railroad  Company. 

Treasurer  of  the  State  of  Connecticut. 


These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Massachusetts, 
Connecticut  and  Rhode  Island. 

[  531  ] 


NEW   HAVEN    &   DERBY   RAILROAD 
Consolidated  Mortgage  5s 

Dated  May  1,  1888  Maturing  May  1,  1918 

Interest  payable  May  1  aud  November  1  at  New  Haven. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $800,000  Outstanding  $575,000 

Per  mile  .    .       39,500 

Security:  The  above  bonds  are  secured  by  a  mortgage  on  the  company's  line  from  New  Ha\en  to 

Ansonia,  Conn.,  and  branch,  totalling  14.55  miles,  together  with  all  buildings,  equipment, 
franchises  and  other  property  now  owned  or  hereafter  acquired;  also  all  incomes  and  profits. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

The  New  Haven  &  Derby  Railroad  Company  was  chartered  in  May,  1864.  Its  main  line  was 
opened  for  traffic  August  1,  1871.  The  property  of  the  company  was  leased  to  The  New  York,  New 
Haven  &  Hartford  Railroad  Company  for  99  years  from  July  1,  1892,  at  an  annual  rental  equal  to 
the  interest  on  its  bonds  and  4%  on  its  capital  stock.  By  a  deed  dated  November  3,  1905,  the  entire 
property  of  the  New  Haven  &  Derby  Railroad  was  conveyed  to  The  New  York,  New  Haven  &  Hart- 
ford Railroad  Company,  the  latter  assuming  all  the  funded  obligations  of  the  lessor. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


PROVIDENCE   &   SPRINGFIELD   RAILROAD 
First  Gold  5s 

Dated  July  1,  1892  Maturing  July  1,  1922 

Interest  payable  January  1  and  July  1  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $750,000  Outstanding  $750,000 

Per  mile  .    .       27,046 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  27.73  miles  of  road  from  Providence  to 

Douglas  Junction,  Mass. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  The  New 
York,  New  Haven  &  Hartford  Railroad  Company. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Providence  &  Springfield  Railroad  Company  was  organized  on  January  ;5(),  1857,  as  the 
Woonasquatucket  Railroad  Company,  its  name  being  changed  to  the  present  title  in  1872.  On 
October  30,  1905,  it  was  merged  into  The  New  York,  New  Haven  &  Hartford  Railroad  Company. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 

[  532  ] 


NAUGATUCK  RAILROAD 
First  Gold  4s 

Dated  May  "2,  1904^  Maturing  May  1,  VJoi 

Interest  payable  May  1  and  November  1  at  New  York,  Boston  and  New  Haven. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $5,000. 

Authorized  $2,500,000  Outstanding  $2,500,000 

Per  mile  .    .  40,984 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  (iO.Ho  miles  of  road,  mainly  covering  the 

line  from  Naugatuck  Junction  to  Winsted,  Conn.,  with  branches. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

The  Naugatuck  Railroad  Company  was  chartered  in  May,  1845,  and  opened  throughout  Sep- 
tember 24,  1849.  In  1887  (April  1)  it  was  leased  to  The  New  York,  New  Haven  &  Hartford  Rail- 
road Company  for  99  years  at  an  annual  rental  equivalent  to  bond  interest  and  10%  dividends. 
By  a  deed  dated  January  31,  1906,  the  property  of  the  Naugatuck  Railroad  Company  was  con- 
veyed to  The  New  York,  New  Haven  &  Hartford  Railroad  Company,  the  latter  assuming  all  its 
funded  obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


BOSTON   &  NEW  YORK  AIR  LINE   RAILROAD 

First  Gold  4s 

Dated  August  1,  1905  Maturing  August  1,  1955 

Interest  payable  February  1  and  August  1  at  New  York,  Boston  and  New  Haven. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Exchangeable  for  fully  registered  bonds  in  lots  of  $5,000. 

Authorized  $5,000,000  Outstanding $3,777,000 

Issuable  for  improvements     1,223,000 
Outstanding  per  mile    .    .  73,668 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  51.27  miles  of  road  from  New  Haven  to 

Willimantic,  Conn. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  The  New  York, 
New  Haven  &  Hartford  Railroad  Company  by  endorsement. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

The  Boston  &  New  York  Air  Line  Railroad  Company  succeeded  the  New  Haven,  Middletown, 
&  Willimantic  Railroad  Company,  organized  in  the  State  of  Connecticut  in  1867.    On  January  30, 

[  533  ] 


1907,  it  was  merged  into  The  New  York,  New  Haven  &  Hartford  Railroad  Company,  the  latter 
assuming  all  its  funded  indebtedness. 

These  bonds  were  quoted  in  1909  on  a  4.03  basis  (bid) 

1910  4.05 

1911  4.07 

1912  4.03 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


PROVIDENCE   TERMINAL   COMPANY 
First  Gold  4s 

Dated  March  1,  1906  Maturing  March  1,  1956 

Interest  payable  March  1  and  September  1  at  New  York,  Boston  and  New  Haven. 

Coupon  bonds  of  $1,000. 
Registered  bonds  of  $5,000. 

Authorized  $7,500,000  Outstanding  $4,000,000 

Security :  These  bonds  are  secured  by  a  first  mortgage  on  the  entire  property  of  the  company,  which  in- 

cludes a  line  of  railroad  extending  from  the  Union  Station,  Providence,  to  a  connection  with 
the  tracks  of  the  Providence  &  Worcester  Railroad  Company  (about  3  miles  of  double  track), 
terminal  facilities  and  passenger  station  of  the  above  company  at  Providence,  a  tunnel  5,061 
feet  in  length,  and  a  drawbridge  across  the  Seekonk  River. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  The  New 
York,  New  Haven  &  Hartford  Railroad  Company  by  endorsement. 

Trustee:  Rhode  Island  Hospital  Trust  Company,  Providence. 

The  Providence  Terminal  Company  was  incorporated  under  the  laws  of  the  State  of  Rhode 
Island  in  May,  1891,  as  the  New  York,  Providence  &  Boston,  and  the  Old  Colony  Railroad  Terminal 
Cofnpany.  On  July  13,  1904,  its  name  was  changed  to  its  present  title,  and  on  December  29,  1906, 
it  was  merged  into  The  New  York,  New  Haven  &  Hartford  Railroad  Company,  the  latter  assuming 
all  its  funded  debt. 

These  bonds  were  quoted  in  1909  on  a  4.05  basis  (bid) 

1910  4.07 

1911  4.10 
December,  1912  4.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  534  ] 


WORCESTER   &   CONNECTICUT   EASTERN   RAILWAY 
First  Gold  414s 

Dated  October  1,  1902  Maturing  January  1,  1943 

Interest  payable  January  1  and  July  1  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $3,100,000  Outstanding  $1,992,000 

Provisions  of      Although  the  authorized  limit  of  this  issue  is  $3,100,000,  it  was  stated  in  the  listing  application 
issue:  to  the  New  York  Stock  Exchange  that  no  further  bonds  would  be  issued  after  the  above- 

mentioned  $1,992,000. 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  all  the  property  and  leases  of  the  company, 

including  a  hydraulic  electric  power  plant  in  the  town  of  Killingly  and  the  leases  of  the  Worces- 
ter &  Webster,  and  Webster  &  Dudley  Street  Railway  Companies  and  all  the  stock,  and  all 
but  $50,000  of  the  bonds  of  these  companies.  The  lines  of  railroad  included  in  this  mortgage 
are  52  miles  in  length,  and  connect  the  towns  of  Thompson,  Putnam,  Killingly,  Brooklyn, 
Plainfield,  Sterling,  Griswold,  and  Preston,  Conn.,  and  leased  lines  extend  north  to  Worcester, 
Mass. 

Sinking  fund:  From  1908  on,  a  sinking  fund  of  not  exceeding  1%  of  the  bonds  outstanding  is  to  be  annually 
provided  for  the  redemption  of  these  bonds  at  a  price  not  higher  than  a  3^4  basis,  upon  three 
weeks'  published  notice  given  in  December  of  each  year. 

Trustee:  New  York  Trust  Company,  New  York. 

The  Worcester  &  Connecticut  Eastern  Railway  Company  was  originally  chartered  in  Connec- 
ticut as  the  Thompson  Tramway  Company,  on  April  30,  1901.  It  took  the  above  name  January  24, 
1902,  and  in  May,  1904,  its  name  was  changed  again  to  The  Consolidated  Railway  Company.  This 
latter  company  was  merged  into  The  New  York,  New  Haven  &  Hartford  Railroad  Company  May 
31,  1907,  and  its  obligations  became  direct  obligations  of  the  latter  company  at  that  time. 

These  bonds  were  quoted  in  1910  on  a  4.25  basis  (bid) 
1911  4.35 

December,  1912  4.30 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Rhode  Island 
and  Connecticut. 


NEW   HAVEN    STREET   RAILWAY 
First  Gold  5s 

Dated  September  1,  1893  Maturing  September  1,  1913 

Interest  payable  March  1  and  September  1  at  New  York  and  Boston. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal. 
Authorized  $600,000  Outstanding  $600,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  all  the  property,  rights  and  franchises 

of  the  New  Haven  Street  Railway  Company,  including  property  and  franchises  of  the  State 
[  535  ] 


Street  Horse  and  New  Haven  &  Morris  Cove  Railway  Companies;  also  all  railway  and  ])rop- 
erty  owned  by  the  New  Haven  Street  Railway  and  all  future  acquisitions.  The  company 
operates  a  single-track  railway  thirty  miles  in  length  in  the  towns  of  New  Haven  and  East 
Haven,  Conn. 

Trustee:  American  Trust  Company,  Boston. 

The  New  Haven  Street  Railway  was  chartered  under  the  laws  of  Connecticut  in  1893.  On 
October  31,  1898,  it  was  consolidated  with  the  Fair  Haven  &  Westville  Railway  Company  and  the 
New  Haven  &  Centerville  Street  Railway  Company  imder  the  name  of  the  Fair  Haven  &  Westville 
Railroad  Company,  which,  in  turn,  consolidated  into  The  Consolidated  Railway  Company  on  May 
20,  1904.  On  May  31,  1907,  The  New  York,  New  Haven  &  Hartford  Railroad  Company  acquired 
The  Consolidated  Railway,  assuming  all  its  debts. 


NEW   HAVEN    STREET   RAILWAY 
Consolidated  Mortgage  5s 

Dated  June  1,  1894  Maturing  June  1,  1914 

Interest  payable  June  1  and  December  1  at  the  American  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000. 
Authorized  $250,000  Outstanding  $!250,000 

Security:  The  above  bonds  are  secured  by  a  mortgage  on  21.83  miles  of  street  railway  in  and  around 

New  Haven,  Conn. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 
Company. 

Trustee:  American  Trust  Company,  Boston. 

For  history,  see  above. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


NEW  HAVEN   &   CENTERVILLE   STREET   RAILWAY 
First  Mortgage  5s 

Dated  September  1,  1893  Maturing  September  1,  1933 

Interest  payable  March  1  and  September  1  at  New  Haven. 

Coupon  bonds  of  $1,000. 
Authorized  $625,000  Outstanding  $283,000 

Per  mile  .    .       55,000 

Security:  The  above  homls  arc  sccur(>d  by  a  fir.st  mortgage  on  5.11  miles  of  the  company's  traction  lines 

in  and  around  New  Haven,  Conn. 

I  53G  I 


These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Raih-oad 
Company. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

The  New  Haven  &  Centerville  Street  Railway  Company  was  consolidated  into  the  Fair  Haven 
&  Westville  Street  Railroad  October  31,  1898.  The  latter,  in  turn,  was  merged  with  The  Consoli- 
dated Railway  Company  on  May  20,  1904.  The  New  York,  New  Haven  &  Hartford  Railroad  Com- 
pany took  over  the  property  of  The  Consolidated  Railway  Company  May  31,  1907,  assuming  at 
that  time  all  the  latter's  funded  obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


MERIDEN    HORSE   RAILROAD 
Consolidated  Mortgage  5s 

Dated  January  1,  1894  Maturing  January  1,  1924 

Interest  payable  January  1  and  July  1  at  Girard  Trust  Comjiany,  Philadelphia. 

Coupon  bonds  of  $1,000. 

Authorized  $500,000  Outstanding  $415,000 

Per  mile  .    .       20,700 

Security:  The  abo\c  bonds  arc  secured  by  a  mortgage  on  the  company's  property  including  20.3  miles 

of  traction  lines  extending  from  Meriden  to  Wallingford,  Conn. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Ha\en  &  Hartford  Railroad 
Company. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

The  Meriden  Horse  Railroad  Company  was  succeeded  by  the  Meriden  Electric  Railroad  Com- 
pany, which  was  merged  with  The  Consolidated  Railway  Company  on  June  27,  1904.  The  New 
York,  New  Haven  &  Hartford  Railroad  Company  took  over  the  property  of  The  Consolidated  Rail- 
way Company  May  31,  1907,  assuming  at  that  time  all  the  latter's  funded  obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


1  537  j 


NORWICH   STREET   RAILWAY 

First  Mortgage  5s 

Dated  October  2,  1893  Maturing  October  2,  1923 

Interest  payable  April  1  and  October  1  at  the  American  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000. 

Authorized  $350,000  Outstanding  $350,000 

Per  mile  .    .       20,500 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  entire  property  of  the  Norwich  Street 

Railway,  including  17  miles  of  traction  lines  situated  in  the  City  of  Norwich,  Conn. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 
Company. 

Trustee:  American  Trust  Company,  Boston. 

The  Norwich  Street  Railway  Company  was  merged  with  The  Consolidated  Railway  Company 
September  29,  1904.  The  New  York,  New  Haven  &  Hartford  Railroad  Company  took  over  the 
property  of  The  Consolidated  Railway  Company  May  31, 1907,  assuming  at  that  time  all  the  latter's 
funded  obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


MONTVILLE   STREET   RAILWAY 

First  Mortgage  5s 

Dated  May  1,  1900  Maturing  May  1,  1920 

Interest  payable  May  1  and  November  1  at  the  American  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $350,000  Outstanding  $250,000 

Per  mile  .    .       25,000 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  entire  property  of  the  Montville  Street 

Railway  Company,  including  10.46  miles  of  traction  lines  extending  from  Norwich  to  New 
London,  Conn. 

These  bonds   have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 
Company. 

Trustee:  American  Trust  Company,  Boston. 

The  Montville  Street  Railway  Company  was  merged  September  29,  1904,  with  The  Consoli- 
dated Railway  Company,  which,  in  turn,  was  taken  over  by  The  New  York,  New  Haven  &  Hartford 
Railroad  Company  on  May  31,  1907,  the  latter  assuming  all  its  funded  obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 

[  538  ] 


NEW   LONDON   STREET   RAILWAY 
First  Mortgage  5s 

Dated  October  2,  1893  Maturing  October  2,  1923 

Interest  payable  April  1  and  October  1  at  the  American  Trust  Company,  Boston. 

Coupon  bonds  of  $1,000. 
Authorized  $150,000  Outstanding  $150,000 

Per  mile  .    .       24,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  property  of  the  New  London  Street 

Railway  including  6.2(5  miles  of  traction  line  situated  in  New  London,  Conn. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 
Company. 

Trustee:  American  Trust  Company,  Boston. 

The  New  London  Street  Railway  Company  was  consolidated  with  The  Consolidated  Railway 
Company  on  October  22,  1904.  The  New  York,  New  Haven  &  Hartford  Railroad  Company  took 
over  the  property  of  The  Consolidated  Railway  Comjiany  May  31,  1907,  assuming  at  that  time  all 
the  latter's  funded  obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


MIDDLETOWN   HORSE   RAILROAD 

First  Mortgage  5s 

Dated  December  1,  1894  Maturing  December  1,  1914 

Interest  payable  June  1  and  December  1  at  Middletown,  Conn. 

Coupon  bonds  of  $500. 
Authorized  $150,000  Outstanding  $150,000 

Per  mile  .    .        21,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage,  subject  to  the  lien  of  the  Portland  Street 

Railway  First  5s  of  1916,  on  7.01  miles  of  traction  lines  belonging  to  the  Middletown  Horse 
Railroad  Company  extending  from  Middletown  to  Portland,  Conn. 

These  bonds  ha\-e  been  ASSUMED  by  The  New    York,  New  Haven  &  Hartford  Railroad 
Company. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

The  Middletown  Horse  Railroad  Company  was  merged  November  28,  1904,  with  The  Consol- 
idated Railway  Company.  The  New  York,  New  Haven  &  Hartford  Railroad  Company  took  over 
the  property  of  The  Consolidated  Railway  Company  May  31,  1907,  assuming  at  that  time  all  the 
latter's  funded  obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 

[  539  ] 


PORTLAND   STREET  RAILWAY 
First  Mortgage  5  s 

Dated  November  1,  1896  Maturing  November  1,  1916 

Interest  payable  May  1  and  November  1  at  Middletown,  Conn. 

Coupon  bonds  of  $500. 

Authorized  $75,000  Outstanding  $30,000 

Per  mile  .    .     10,700 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  2.8  miles,  situated  in 

Portland,  Conn. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 
Company. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

The  Portland  Street  Railway  Company  was  consolidated  into  the  Middletown  Horse  Railroad 
Company  January  12,  1898.    For  history  of  the  latter,  .see  page  539. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Connecticut 
and  Rhode  Island. 


HARTFORD,  MANCHESTER   &    ROCKVILLE   TRAMWAY   COMPANY 
First  Mortgage  5s 

Dated  October  1,  1894  Maturing  October  1,  1924 

Interest  payable  April  1  and  October  1  at  the  City  Bank,  Hartford. 

Coupon  bonds  of  $1,000. 

Authorized  $300,000  Outstanding  $200,000 

Per  mile  .    .       11,800 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  17  miles  of  the  company's  road. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 
Company. 

The  Hartford,  Manchester  &  Rockville  Tramway  Company  was  merged  on  March  26,  1906, 
into  The  Consolidated  Railway  Company.  On  May  31,  1907,  The  New  Y^ork,  New  Haven  &  Hart- 
ford Railroad  Company  took  over  the  property  of  The  Consolidated  Railway  Company,  assuming 
at  that  time  all  the  latter's  funded  obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 

I   510  ] 


HARTFORD   STREET   RAILWAY 
First  Gold  4s 

Dated  September  1,  1900  Maturing  September  1,  1930 

Interest  payable  March  1  and  September  1  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $3,000,000  Outstanding  $2,500,000 

Provisions  of      Although  $3,000,000  is  the  authorized  limit  of  this  issue,  it  was  stated  in  the  listing  applica- 
issue:  tion  to  the  New  York  Stock  Exchange  that  no  more  bonds  would  he  issued  than  the  above. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  all  the  property,  rights  and  franchises  of 

the  company  now  owned  or  hereafter  acquired,  including  the  street  railway  line  in  Hartford, 
Conn.,  and  between  the  towns  of  Hartford,  Wethersfield,  Newington,  West  Hartford,  Bloom- 
field,  Windsor,  and  South  Windsor,  Conn.,  in  all  about  76  miles. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

The  Hartford  Street  Railway  Company  was  chartered  under  the  laws  of  the  State  of  Connecti- 
cut July  1,  1862,  as  the  Hartford  &  Wethersfield  Horse  Railroad  Company.  The  name  was  changed 
to  its  present  title  in  1893.  On  September  19,  1905,  it  was  consolidated  into  The  Consolidated  Rail- 
way Company,  which,  in  turn,  was  merged  into  The  New  York,  New  Haven  &  Hartford  Railroad 
Company  on  May  31,  1907.  At  that  time,  the  latter  assumed  all  the  funded  indebtedness  of  The 
Consolidated  Railway  Company,  including  the  above  issue. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Lsland. 


HARTFORD   STREET   RAILWAY 
Debenture  4s 
Series  "  M  " 

Dated  September  1,  1900  Maturing  January  1,  1930 

Interest  payable  January  15  and  July  15  at  New  Haven. 

Coupon  bonds  of  $1,000. 
Authorized  $165,000  Outstanding  $165,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Hartford  Street  Railway,  but  are  not  secured 

by  a  mortgage. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 
Company. 

For  history,  see  above. 

[  5U  ] 


GREENWICH  TRAMWAY   COMPANY 
First  Mortgage  5s 

Dated  July  1,  1901  Maturing  July  1,  1931 

Interest  payable  January  1  and  July  1  at  the  New  York  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $400,000  Outstanding  $320,000 

Per  mile  .    .       35,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  property,  including  9.1 

miles  of  traction  lines  extending  from  the  New  York  State  Line  to  Stamford,  Conn. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 
Company. 

Trustee:  New  York  Trust  Company,  New  York. 

The  Greenwich  Tramway  Company  was  consolidated  with  The  Consolidated  Railway  Company 
on  September  19,  1905.  The  New  York,  New  Haven  &  Hartford  Railroad  Company  took  over  the 
property  of  The  Consolidated  Railway  Company  May  31,  1907,  assuming  all  the  latter's  funded 
obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


BRANFORD   ELECTRIC   COMPANY 

First  Mortgage  5s 

Dated  October  1,  1897  Maturing  October  1,  1937 

Interest  payable  April  1  and  October  1  at  the  New  Haven  Trust  Company,  New  Haven. 

Coupon  bonds  of  $1,000. 

Authorized  $100,000  Outstanding  $63,000 

Per  mile  .    .     12,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  5.15  miles  of  road  extending  from  East 

Haven  to  Branford,  Conn.,  the  property  of  the  Branford  Light  &  Water  Company. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 
Company. 

Trustee:  New  Haven  Trust  Company,  New  Haven. 

The  Branford  Electric  Company  was  chartered  in  1895,  and  its  name  was  subsequently  changed 
to  the  Branford  Light  &  Water  Company.  The  latter  company  was  merged  into  The  Consolidated 
Railway  Company  September  19,  1905.    The  New  York,  New  Haven  &  Hartford  Railroad  Company 

[542  ] 


took  over  the  property  of  The  Consolidated  Railway  Company  on  May  31,  1907,  assuming  at  the 
same  time  all  the  latter's  fimded  indebtedness. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


TORRINGTON   &   WINCHESTER   STREET   RAILWAY 

First  Mortgage  5s 

Dated  December  1,  1897  Maturing  December  1,  1917 

Interest  payable  June  1  and  December  1  at  Winsted,  Conn. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $150,000  Outstanding  $150,000 

Per  mile  .    .       12,500 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  12.4  miles  of  the  company's  electric  road 

extending  from  Torrington  to  Winchester,  Conn. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 
Company. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

The  Torrington  &  Winchester  Street  Railway  Company  was  consolidated  with  The  New  York, 
New  Haven  &  Hartford  Railroad  Company  on  June  28,  1907,  at  which  time  the  latter  assumed  all 
its  funded  obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


MERIDEN,  SOUTHINGTON    &   COMPOUNCE  TRAMWAY   COMPANY 

First  Mortgage  5s 

Dated  August  15,  1898  Maturmg  July  1,  1928 

Interest  payable  January  1  and  July  1  at  the  Trust  Company  of  America,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $200,000  Outstanding  $175,000 

Per  mile  .    .       15,000 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  extending  from  Meri- 

den  to  Lake  Compounce  and  Plainville,  Conn.,  11.64  miles. 
[  543  ] 


These  bonds 
Company. 


been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 


Trustee: 


Trust  Company  of  America,  New  York. 


The  Meriden,  Southington  &  Compounce  Tramway  Company  was  consolidated  with  The  New 
York,  New  Haven  &  Hartford  Railroad  Company  on  June  28,  1907,  at  which  time  the  latter  assumed 
all  its  funded  obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Rhode  Island. 


PAWTUXET  VALLEY  RAILROAD 


First  Mortgage  4s 

Dated  April  1,  1900  Maturing  April  1,  1925 

Interest  payable  April  1  and  October  1  at  New  Haven. 


Coupon  bonds  of  $1,000. 


Authorized  $160,000 


Outstanding  $160,000 
Per  mile  .    .       28,000 


Security 


Trustee : 


The  above  bonds  are  secured  by  a  first  mortgage  on  the  road  of  the  company  from  Pontiac 
to  Hope,  R.  I.,  5.67  miles. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 
Company. 

Treasurer  of  the  State  of  Connecticut. 


The  Pawtuxet  Valley  Railroad  was  chartered  August  27,  1872,  and  was  opened  for  traffic  August 
1,  1874.  It  was  leased  to  the  New  York,  Providence  &  Boston  Railroad  Company  for  99  years  from 
July  1,  1884,  at  an  annual  rental  of  interest  on  the  company's  bonds,  7%  on  its  capital  stock,  and 
other  charges.  This  lease  was  assigned  to  The  New  Y'ork,  New  Haven  &  Hartford  Railroad  Company 
upon  the  merger  of  the  New  York,  Providence  &  Boston  Railroad  Company  with  it  in  1893. 

On  April  16,  1907,  the  Pawtuxet  Valley  Railroad  Company  was  formally  consolidated  with  The 
New  York,  New  Haven  &  Hartford  Railroad  Companj%  the  latter  assuming  all  its  funded  obligations. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England,  except  Massachusetts. 


[  544  ] 


THE   NEW   ENGLAND    RAILROAD 
Consolidated  Gold  4s  and  5s 

Dated  September  2,  1895  Maturing  July  1,  1945 

Interest  payable  January  1  and  July  1  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $17,500,000  Outstanding  (4s)   $10,000,000 

(5s)       7,500,000 
Per  mile  ....  48,200 

Security:  The  above  bonds  are  a  direct  mortgage  on  the  franchises,  railroad  totalling  363.15  miles,  and 

other  property  of  the  company,  and  subject  only  to  the  New  York  &  New  England  Railroad 
Boston  Terminal  P'irst  4s  of  1939  on  certain  property  in  Boston,  Mass.  The  company  owns 
213  miles  of  road  extending  from  Boston,  Mass.,  to  Hopewell  Junction,  N.  Y.,  also  valuable 
terminal  property  at  Boston  comprising  docks,  wharves,  a  grain  elevator,  freight  houses,  and 
yards. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  The  New  York, 
New  Haven  &  Hartford  Railroad  Company. 

Trustee:  Manhattan  Trust  Company,  New  York. 

The  New  England  Railroad  was  chartered  August  28,  1895,  as  the  successor  to  the  New  York 
&  New  England  Railroad  Company,  whose  property  was  sold  under  foreclosure.  On  April  1,  1908, 
The  New  England  Railroad  Company  was  merged  into  The  New  York,  New  Haven  &  Hartford  Rail- 
road Company,  the  latter  assuming  all  its  funded  indebtedness. 

The  4s  of  1945  were  quoted  in  1909  on  a  4.00  basis  (bid) 

1910  4.05 

1911  4.04 

1912  4.05 

The  5s  of  1945  were  quoted  in  1909  on  a  4.10  basis  (bid) 

1910  4.12 

1911  4.15 
December,  1912           4.35 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  545  ] 


THE   STAFFORD   SPRINGS   STREET  RAILWAY 

First  Mortgage  5s 

Dated  January  1,  1907  Maturing  July  1,  1956 

Interest  payable  January  1  and  July  1  at  New  Haven. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $5,000. 

Authorized  $500,000  Outstanding  $400,000 

Per  mile  .    .       31,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  12.9  miles  of  the  company's  road  from 

Rockville  to  Stafford  Springs,  Conn. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

The  Stafford  Springs  Street  Railway  Company  was  consolidated  with  The  New  York.  New 
Haven  &  Hartford  Railroad  Company  on  June  30,  1908,  at  which  time  the  latter  assumed  all  its 
funded  obligations. 


NEW  HAVEN   &  NORTHAMPTON   COMPANY 

Refunding  Consolidated  4s 

Dated  June  1,  1906  Maturing  June  1,  1956 

Interest  payable  June  1  and  December  1  at  New  Haven. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Exchangeable  for  registered  bonds  in  lots  of  $5,000. 

Authorized  $10,000,000  Outstanding  $2,400,000 

i'er  mile  .    .  19,000 

Provisions  of      The  above  bonds  were  originally  issued  as  follows:  $3,900,000  to  reimburse  The  New  York, 
issue:  New  Haven  &  Hartford  Railroad  Company  for  certain  bond  issues,  and  the  remainder, 

$6,100,000,  to  cover  the  cost  of  past  and  future  double  tracking,  eliminating  grade  crossings, 
widening  and  deepening  the  East  Cut  at  New  Haven  and  otherwise  improving  the  road. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  127  miles  of  road;  in  part,  the  line  from 

New  Haven,  Conn.,  to  Shelburne  Junction,  Mass.,  together  with  all  the  property  of  the  com- 
pany now  owned  or  hereafter  acquired. 

Guarantee:         These  bonds  were  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad  Company. 

Trustee:  Treasurer  of  the  State  of  Connecticut. 

The  New  Haven  &  Northampton  Company  was  chartered  under  the  laws  of  Massachusetts 
and  Connecticut  in  1836,  and  was  leased  for  99  years  from  1887  to  The  New  York,  New  Haven  & 

[  546  ] 


Hartford  Railroad  Company,  into  which  it  was  merged  on  October  26,  1910.    At  that  time  the  latter 
assumed  all  its  funded  indebtedness. 

These  bonds  were  quoted  in  1909  on  a  4.05  basis  (bid) 

1910  4.05 

1911  4.10 
December,  1912  4.25 

These   bonds  are  considered  a  legal  investment    for   savings   banks   in   Maine,  New  Hampshire   and 
Connecticut. 


THE  NEW  YORK,  NEW  HAVEN  &  HARTFORD  RAILROAD 


Convertible  Debenture  6s 


Dated  January  15,  1908 

Interest  payable  January  15  and  July  15  at  Ne 


Maturing  January  15,  1948 
York  and  Boston. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $100,  $1,000  and  $10,000. 


Authorized  $39,029,600 


Outstanding  $39,029,000 


Security :  The  above  bonds  are  not  secured  by  a  mortgage,  but  are  a  direct  obhgation  of  the  company. 

These  debentures  provide,  so  far  as  may  be,  that  if  this  company  shall  hereafter  create  any 
mortgage  on  its  now  existing  main  line  of  railroad  between  Woodlawn,  N.  Y.,  and  Springfield, 
Mass.,  or  between  New  Haven,  Conn.,  and  Providence,  R.  I.,  such  debentures  shall  be  entitled 
to  share  in  the  security  of  such  mortgage  pro  rata.  These  debentures  also  provide  that  the 
holders  shall  enjoy  the  right  to  subscribe  to  any  issue  of  capital  stock  to  the  same  extent  as 
the  stockholders. 

Convertibility:  These  bonds  are  convertible  into  the  stock  of  the  company  after  January  15,  1923,  and  not 
later  than  January  15,  1948,  at  the  rate  of  one  share  of  stock  for  each  $100  of  the  principal 
amount  of  these  bonds. 

These  bonds  sold  in  1908  on  a  4.10  to  5.10  basis 

1909  3.75       4.25 

1910  4.15       4.35 

1911  4.15       4.50 

1912  4.25       4.70 


These   bonds  are  considered 
Connecticut. 


legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and 


[  547] 


THE   NEW  YORK,  NEW  HAVEN    &   HARTFORD   RAILROAD 
Convertible  Debenture  332%  Certificates 

Dated  January  1,  1906  Maturing  January  1,  1956 

Interest  payable  January  1  and  July  1  at  New  York  and  Boston. 

Coupon  bonds  of  $100,  $500  and  $1,000. 
Exchangeable  for  registered  certificates  of  $5,000. 

Authorized  $30,000,000  Outstanding  $10,416,300 

Provisions  of      Of  the  total  amount  authorized,  $10,416,300  are  outstanding  as  above,  and  the  balance, 
issue:  $19,583,700,  has  been  exchanged  for  capital  stock  of  the  company. 

Security:  The  above  bonds  are  not  secured  by  a  mortgage,  but  are  a  direct  obligation  of  the  company. 

These  debentures  were  issued  to  provide  for  the  retirement  of  coupon  notes  amounting  to 
$12,100,000,  and  to  furnish  further  funds  to  bring  the  property  up  to  the  necessary  standard 
of  efficiency. 

Convertibility:  These  bonds  are  convertible  into  the  stock  of  the  company  between  January  1,  1911,  and  Jan- 
uary 1,  1916,  at  the  rate  of  one  share  of  $100  capital  stock  for  each  $150  (face  value)  of  these 
certificates. 

Registrar:  Second  National  Bank,  New  Haven. 

These  bonds  sold  in  1908  on  a  3.50  to  4.35  basis 

1909  3.07       3.62 

1910  3.37       3.65 

1911  3.48       4.05 

1912  3.75       4.20 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts and  Connecticut. 


THE    NEW   YORK,  NEW   HAVEN    &   HARTFORD   RAILROAD 
1.     Non-Convertible  Debenture  4s 

Dated  February  1,  1904  Maturing  February  1,  1914 

Interest  payable  February  1  and  August  1,  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000.    Registered  lionds  of  $10,000. 
Non-interchangeable. 

Authorized  $5,000,000  Outstanding  $5,000,000 

The  above  bonds  were  sold  in  1909  on  a  4.22  basis  (bid) 

1910  4.40 

1911  4.35 

1912  4.62  (bid) 
[  548  ] 


2.     Non-Convertible  Debenture  4s 

Dated  March  1,  1897  Maturing  March  1,  1947 

Interest  payable  March  1  and  September  1  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000.    Registered  bonds  of  $10,000. 

Non-interchangeable. 

Authorized  $5,000,000  Outstanding  $5,000,000 

The  above  bonds  were  sold  in  1909  on  a  4.27  basis  (bid) 

1910  4.25 

1911  4.35 

1912  4.55  (bid) 

3.  Non-Convertible  Debenture  3l^s 

Dated  March  1,  1901  Maturing  March  1,  1947 

Interest  payable  March  1  and  September  1,  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $10,000. 

Non-interchangeable . 

Authorized  $5,000,000  Outstanding  $5,000,000 

The  above  bonds  were  sold  in  1909  on  a  4.25  basis 

1910  4.40 

1911  4.40 

1912  •      4.75  (bid) 

4.  Non-Convertible  Debenture  3^2S 

Dated  April  1,  1904  Maturing  April  1,  1954 

Interest  payable  April  1  and  October  1,  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $10,000. 

Non-interchangeable. 

Authorized  $10,000,000  Outstanding  $10,000,000 

The  above  bonds  were  sold  in  1909  on  a  4.27  basis  (bid) 

1910  4.30  to  4.50 

1911  4.35       4.55 

1912  4.55  (asked) 

5.     Non-Convertible  Debenture  4s 

Dated  July  1,  1905  Maturing  July  1,  1955 

Interest  payable  January  1  and  July  1  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000.    Registered  bonds  of  $10,000. 

Non-interchangeable . 

Authorized  $15,000,000  Outstanding  $15,000,000 

The  above  bonds  were  sold  in  1909  on  a  4.15  basis 

1910  4.15  to  4.35 

1911  4.30       4.35 

1912  4.40       4.55 
[  549  ] 


6.     Non-Convertible  Debenture  4s 

Dated  May  1,  1906  Maturing  May  1,  1956 

Interest  payable  May  1  and  November  1  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000.    Registered  bonds  of  $10,000. 
Non-interchan  geable. 

Authorized  $15,000,000  Outstanding  $15,000,000 

The  above  bonds  were  sold  in  1909  on  a  4.15  to  4.25  basis 

1910  4.22       4.32 

1911  4.27       4.40 

1912  4.35       4.55 

Security :  These  bonds  are  not  secured  by  mortgage,  but  are  direct  obligations  of  The  New  York,  New 

Haven  &  Hartford  Railroad  Company. 

Listed:  New  York  Stock  Exchange. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Con- 
necticut, with  the  exception  of  the  Debenture  4s  of  1956.    They  are  legal  for  savings  banks  in  Massachusetts. 


THE   NEW  YORK,  NEW   HAVEN   &   HARTFORD   RAILROAD 
One-Year  5%  Coupon  Notes 

Dated  December  2,  1912  Maturing  December  1,  1913 

Interest  payable  June  1  and  December  1  at  New  York. 

Coupon  notes  of  $5,000  and  multiples. 
Authorized  $40,000,000  Outstanding  $40,000,000 

Security:  These  notes  are  a  direct  obligation  of  The  New  York,  New  Haven  &  Hartford  Railroad  Com- 

pany, but  are  not  secured  by  a  mortgage. 

These  notes  were  issued  to  retire  $30,000,000  one-year  notes  maturing  January  15,  1913.    They 
were  offered  by  J.  P.  Morgan  &  Co.  at  99j^  in  December,  1912. 


[  550  ] 


THE  NEW  YORK,  NEW  HAVEN  &  HARTFORD  RAILROAD 

European  Loan  Debenture  4s 

Dated  April  1,  1907  Maturing  April  1,  1922 

Interest  payable  April  1  and  October  1  at  Paris,  London,  Berlin,  Hamburg  and  Amsterdam. 

Coupon  bonds  of  500  francs  and  £19.15.6  and  multiples. 
Authorized  $27,985,000  Outstanding  $27,985,000 

Security :  These  bonds  are  a  direct  obligation  of  The  New  York,  New  Haven  &  Hartford  Railroad  Com- 

pany, but  are  not  secured  by  a  mortgage. 

Listed:  Boston  Stock  Exchange. 


THE   CONSOLIDATED   RAILWAY 
1.     Non-Convertible  Debenture  4s,  3^8,  and  3s 

Dated  February  1,  1905  Maturing  February  1,  1930 

Interest  payable  February  1  and  August  1  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $10,000. 

Non-interchangeable. 

Authorized  $1,000,000  Outstanding  $972,000 

These  debentures  bear  3%  interest  until  February  1, 1910,  3'-^%  interest  until  February  1, 1915,  and  there- 
after 4%  interest  until  maturity. 

2.  Non-Convertible  Debenture  4s 

Dated  July  1,  1904.  Maturing  July  1,  1954 

Interest  j)ayablc  January  1  and  July  1  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $10,000. 

Non-interchangeable. 

Authorized  $5,000,000  Outstanding  $4,225,000 

$745,000  have  been  retired  and  cancelled. 

3.  Non-Convertible  Debenture  4s 

Dated  January  2,  1905  Maturing  January  1,  1955 

Interest  payable  January  1  and  July  1  at  New  York  and  Boston. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $10,000. 

Non-interchangeable. 

Authorized  $4,000,000  Outstanding  $2,309,000 

$1,691,000  have  been  retired  and  cancelled. 

[551  ] 


4.     Non-Convertible  Debenture  4s 


Dated  April  1,  1905 


Maturing  April  1,  1955 


Interest  payable  April  1  and  October  1  at  New  York  and  Boston. 


Authorized  $3,500,000 


Coupon  bonds  of  $1,000.  Registered  bonds  of  $10,000. 
Non-interchangeable. 


$!i, 159,000  have  been  retired  and  cancelled. 


Outstanding  $1,340,000 


5.     Non-Convertible  Debenture  4s 


Dated  January  1,  1906 


Maturing  January  1,  1956 


Interest  payable  January  1  and  July  1  at  New  York  and  Boston. 


Authorized  $10,000,000 


Coupon  bonds  of  $1,000.    Registered  bonds  of  $10,000. 
Non-interchangeable. 

$7,989,000  have  been  retired  and  cancelled. 


Outstanding  $2,011,000 


Security:  The  above  bonds  are  not  secured  by  mortgage,  but  are  direct  obligations  of  The  New  York, 

New  Haven  &  Hartford  Railroad  Company.  The  Consolidated  Railway  Company  agrees 
that  if  it  shall  hereafter  mortgage  any  of  its  property  and  franchises  owned  on  the  date  of  the 
issue  of  these  debentures,  except  to  renew  existing  mortgages,  these  debentures  shall  partici- 
pate in  the  security  of  such  a  mortgage  pro  rata. 


Listed : 


New  York  Exchange. 


The  Consolidated  Railway  Company  was  organized  under  the  laws  of  the  State  of  Connecticut 
August  31,  1901,  as  the  Thompson  Tramway  Company.  Its  name  was  changed  January  29,  1902, 
to  the  Worcester  &  Connecticut  Eastern  Railway  Company.  Its  present  title  was  incorporated 
May  18,  1904. 

On  May  31, 1907,  it  was  merged  into  The  New  York,  New  Haven  &  Hartford  Railroad  Company. 
At  that  tune  the  latter  assumed  all  the  funded  indebtedness  of  The  Consolidated  Railway  Company, 
including  the  above  issues. 


OLD    COLONY   RAILROAD 
1.     Plain  4s 


Dated  January  1, 


Authorized  $4,000,000 


Interest  payable  January  1  and  July  1  at  Boston. 
Registered  bonds  of  $1,000. 


Maturing  January  1,  1938 


Outstanding  $4,000,000 


552  ] 


2.    Plain  4s 

Dated  February  1,  1894  Maturing  February  1,  1924 

Interest  payable  February  1  and  August  1  at  Boston. 


Authorized  $3,000,000 


Coupon  bonds  of  $1,000  and  $5,000,  fully  registerable. 
Registered  bonds  of  $1,000  and  $5,000. 


Outstanding  $3,000,000 


3.     Plain  4s 

Dated  December  1,  1895  Maturing  December  1,  1925 

Interest  payable  June  1  and  December  1  at  Boston. 


Outstanding  $5,598,000 


Dated  July  1,  1902 


Authorized  $1,000,000 


Coupon  bonds  of  $1,000  and  $5,000. 
Registered  bonds  of  $1,000  and  $5,000. 


4.     Plain  3Ks 


Interest  jiayable  January  1  and  July  1  at  Boston. 

Coupon  bonds  of  $1,000. 
Registered  bonds  of  $1,000. 


Maturing  July  1,  1932 


Outstanding  $1,000,000 


Security:  The  above  bonds  are  a  direct  obHgation  of  the  Old  (,'olony  Railroad  Company,  but  are  not 

secured  by  mortgage. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Haven  &  Hartford  Railroad 
Company. 

Listed:  Boston  Stock  Exchange. 

The  Old  Colony  Railroad  Company  was  incorporated  in  Marcli,  1844,  under  the  laws  of  Massa- 
chusetts. The  jjresent  company,  a  consolidation  of  various  small  lines  acquired  at  different  periods, 
was  leased  February  15,  1893,  for  99  years  to  The  New  York,  New  Haven  &  Hartford  Railroad  Com- 
pany, at  an  annual  rental  of  7%  on  the  company's  cajjital  stock  and  the  assumption  of  all  the  funded 
obligations  of  the  company. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  553  ] 


BOSTON   &  PROVIDENCE   RAILROAD 
Plain  4s 

Dated  July  1,  1888  Maturing  July  1,  1918 

Interest  payable  January  1  and  July  1  at  Boston. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Outstanding  $2,170,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  Boston  &  Providence  Railroad  Corporation, 

but  are  not  secured  by  a  mortgage. 

These  bonds  have  been  ASSUMED  by  The  New  York,  New  Ila^en  &  Hartford  Railroad 
Company. 

Listed:  Boston  Stock  Exchange. 

The  Boston  &  Providence  Railroad  Corporation  was  incorporated  July  22,  1831,  under  the  laws 
of  Massachusetts.  It  was  completed  and  opened  for  traffic  in  August,  1835.  From  April  1,  1888,  for 
99  years  it  was  leased  to  the  Old  Colony  Railroad  Company  at  an  annual  rental  equivalent  to  10% 
on  its  capital  stock,  interest  on  its  bonds,  and  organization  expenses.  This  lease  was  assumed  by 
The  New  York,  New  Haven  &  Hartford  Railroad  when  it  leased  the  Old  Colony  Railroad  in  1893. 

These  bonds  were  quoted  December,  1912,  on  a  4.37  basis  (bid). 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hamijshire,  Massachusetts, 
Connecticut  and  Rhode  Island. 


PROVIDENCE   &  WORCESTER  RAILROAD 
First  Mortgage  4s 

Dated  June  1,  1897  Maturing  October  1,  1947 

Interest  payable  April  1  and  October  1  at  the  Rhode  Island  Hospital  Trust  Company, 

Providence. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $1,500,000  Outstanding  $1,500,000 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  entire  property  of  the  Providence  & 

Worcester  Railroad,  including  railroad,  buildings,  equipment,  franchises,  income  and  profits. 

These  bonds  have  been  GUARANTEED  as  to  INTEREST  by  The  New  York,  New  Haven 
&  Hartford  Railroad  Company  under  terms  of  its  lease. 

Trustee:  Rhode  Island  Hospital  Trust  Company,  Providence. 

The  Providence  &  Worcester  Railroad  Company  was  incorporated  in  May,  1844,  under  the  laws 
of  Rhode  Island  and  Massachusetts.    It  was  leased  to  The  New  York,  New  Haven  &  Hartford  Rail- 

[  554  ] 


road  Company  for  99  years  from  July  1,  1892,  at  an  annual  rental  of  10%  on  its  stock,  interest  on 
its  funded  indebtedness  and  $6,000  for  organization  expenses.  Of  its  $3,500,000  capital  stock.  The 
New  York,  New  Haven  &  Hartford  Railroad  Company  owns  $749,500. 

These  bonds  were  quoted  December,  1912,  on  a  4.15  basis  (bid). 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Massachu- 
setts, Connecticut  and  Rhode  Island. 


NORWICH   &  WORCESTER   RAILROAD 

Debenture  4s 

Dated  March  1,  1897  Maturing  March  1,  1927 

Interest  payable  March  1  and  September  1  at  Boston. 

Coupon  bonds  of  $1,000. 
Registered  bonds  of  $1,000. 

Authorized  $2,000,000  Outstanding  $1,200,000 

The  unissued  balance  of  these  bonds  has  been  reserved  for  improvements  and  betterments 
with  restrictions. 

Security :  The  above  bonds  are  a  direct  obligation  of  the  Norwich  &  Worcester  Railroad  Company,  but 

are  not  secured  by  a  mortgage. 

These  bonds  are  GUARANTEED  as  to  INTEREST  by  The  New  York,  New  Haven  &  Hart- 
ford Railroad  Company  imder  the  terms  of  its  lease. 

The  Norwich  &  Worcester  Railroad  Company  was  incorporated  June  22,  1836,  under  the  laws 
of  Massachusetts  and  Connecticut  as  the  consolidation  of  the  Worcester  &  Norwich  Railroad  and 
the  Boston,  Norwich  &  New  London  Railroad  Companies.  It  was  leased  to  The  New  England  Rail- 
road Company  from  February  9,  1869,  for  99  years,  at  an  annual  rental  equivalent  to  8%  on  the 
company's  capital  stock,  and  interest  on  its  bonds.  This  lease  was  assumed  by  The  New  York,  New 
Haven  &  Hartford  Railroad  Company  at  the  time  of  the  merging  of  The  New  England  Railroad  Com- 
pany into  its  system. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Massachusetts,  Connecticut  and 
Rhode  Island. 


[  555 


CONNECTICUT   RAILWAY   &  LIGHTING   COMPANY 
First  &  Refunding  Gold  4Hs 

Dated  January  1,  1901  Maturing  January  1,  1951 

Interest  payable  January  1  and  July  1  at  the  Equitable  Trust  Company,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $15,000,000 


Outstanding  $12,551,000 


Security:  The  above  bonds  are  secured  by  a  mortgage  on  all  the  franchises,  real  estate,  plants,  and  all 

other  property  of  the  company  now  owned  or  hereafter  acquired,  and  are  subject  only  to 
$209,000  Connecticut  Light  &  Power  5s  of  1939,  $706,000  Bridgeport  Traction  Company  5s 
of  1923,  and  $59,700  Derby  Street  Railway  5s  of  1914.  The  company  covenants  to  deliver  to 
the  trustee  hereunder  all  shares  of  stock  purchased  with  the  proceeds  of  these  bonds,  and  at 
the  present  time  has  deposited  with  the  trustee  $4,380,146  of  such  securities. 

Guarantee:  The  above  bonds  are  "stamped"  with  a  guarantee  as  to  interest  by  the  United  Gas  Improve- 
ment Company.    These  "stamped  bonds"  are  redeemable  at  105  and  interest. 

Sinking  fund :  The  United  Gas  Improvement  Company  agrees  to  pay  the  trustee  on  the  first  day  of  July, 
1905,  and  on  each  July  1  thereafter  until  and  including  July  1,  1950,  a  sum  equal  to  one-half 
of  1%,  and  on  December  31, 1950,  a  sum  equal  to  one-fourth  of  1%  of  the  bonds  outstanding 
whether  or  not  in  the  sinking  fund,  such  payments  to  be  held  by  the  trustee  for  the  benefit  of 
the  "stamped"  guaranteed  bonds. 

Property:  The  railway  properties  of  the  company,  all  the  lines  of  which  are  operated  by  electricity,  are 

in  three  divisions:  the  New  Britain  Division,  connecting  New  Britain,  Newington,  Plainville, 
Southington,  and  Berlin;  the  Waterbury  Division,  connecting  Waterbury,  Southington,  Mt. 
Carmel,  and  Seymour;  and  the  Bridgeport  Division,  connecting  Bridgeport,  Seymour,  Wood- 
mont,  Darien,  and  Stamford.  The  company  owns  one  complete  gas  works  at  Norwalk,  a 
holder  and  distribution  system  in  Naugatuck  and  Greenwich,  and  two  manufacturing  plants 
completely  equipped  with  a  total  capacity  of  3,240,000  cubic  feet  per  day.  The  towns  and 
municipalities  served  by  this  department  of  the  company  are  East  Portchester,  Greenwich, 
Norwalk,  New  Canaan,  Waterbury,  Watertown,  Naugatuck,  Cheshire,  New  Britain,  South- 
ington, Plainville,  and  Berlin. 

Trustee:  Equitable  Trust  Company,  New  York. 

The  Connecticut  Railway  &  Lighting  Company  was  chartered  in  1895  as  the  Gas  Supply  Com- 
pany, its  charter  later  being  amended,  changing  its  name  to  the  Connecticut  Lighting  &  Power  Com- 
pany. On  January  10,  1901,  its  present  title  was  adopted.  The  company  leased  all  its  property  to 
The  Consolidated  Railway  Company  on  December  19,  1906,  for  999  years.  The  Consolidated  Rail- 
way during  the  following  year  merged  into  The  New  York,  New  Haven  &  Hartford  Railroad  Company. 

These  bonds  sold  in  1909  on  a  4.35  basis  (bid) 

1910  4.375 

1911  4.40 
December,  1912  4.55  (bid) 


[  556  ] 


CONNECTICUT   LIGHTING   &  POWER   COMPANY 
First  Mortgage  5  s 

Dated  January  1,  1899  Maturing  January  1,  1939 

Interest  payable  January  1  and  July  1  at  Bridgeport. 

Coupon  bonds  of  $1,000. 
Authorized  $1,000,000  Outstanding  $209,000 

For  liistory,  see  page  556. 


BRIDGEPORT  TRACTION   COMPANY 
First  Mortgage  5s 

Dated  July  1,  1893  Maturing  July  1,  1923 

Interest  payable  January  1  and  July  1  at  Redmond  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $2,000,000  Outstanding  $706,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  53  miles  of  track  in  Bridgeport  and  con- 

necting lines. 

Trustee:  Fidelity  Trust  Company,  Newark,  N.  J. 

The  two  issues  above  are  the  obligations  of  the  Connecticut  Railway  &  Lighting  Company, 
which  was  incorporated  as  the  Gas  Supply  Company,  July  2,  1895,  in  Connecticut.  The  company 
assumed  its  present  title  January  10,  1901.  It  was  leased  for  999  years  from  December  19,  1906, 
to  The  Consolidated  Railway  Company,  which  was  absorbed  by  The  New  York,  New  Haven  & 
Hartford  Railroad  Company  May  '.U,  1907. 


[557] 


Dated  January  1,  1911 


Authorized  $25,000,000 


CENTRAL  NEW  ENGLAND   RAILWAY 
First  Gold  4s 

Interest  payable  January  1  and  July  1  at  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Exchangeable  for  registered  bonds  of  $10,000. 


Maturing  January  1,  1961 


Outstanding  $11,957,000 
Per  mile  .    .  87,058 


Provisions  of      Of  the  total  amount  authorized  $11,957,000  are  outstanding  as  above,  $287,000  have  been 
issue:  reserved  to  retire  Dutchess  County  First  4i/^s,  and  the  balance,  $12,856,000,  has  been  reserved 

for  extensions,  improvements  and  additions  up  to  25%  of  cost. 

Security :  The  above  bonds  are  a  direct  obligation  of  the  company,  and  are  secured  by  a  first  mortgage 

on  137  miles  of  road  including  the  Poughkeepsie  Bridge  across  the  Hudson,  wliich  alone  cost 
upwards  of  $7,000,000.  The  bonds  are  fuilher  secured  by  a  first  mortgage  on  all  the  property 
which  may  be  secured,  constructed,  and  improved  with  the  proceeds  of  these  bonds. 

The  above  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  The  New 
York,  New  Haven  &  Hartford  Railroad  Company  by  endorsement. 

Redemption:      They  are  redeemable  at  105  and  interest  after  January  1,  1921,  upon  six  weeks'  notice. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Central  New  England  Railway  Company  was  chartered  January  12,  1899,  as  the  successor 
to  the  Philadelphia,  Reading  and  New  England  Railroad  Company.  It  is  controlled  by  The  New 
York,  New  Haven  &  Hartford  Railroad  Company  through  ownership  of  substantially  all  its  capital 
stock,  but  is  operated  independently. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


NEW   YORK,  WESTCHESTER    &   BOSTON   RAILWAY 
First  Gold  4Hs 


Dated  July  1,  1911 


Maturing  July  1,  1946 


Interest  payable  January  1  and  July  1  at  New  York  and  London. 


Coupon  bonds  of  $1,000,  £100  and  £200,  registerable  as  to  principal. 

Registered  bonds  of  $1,000  and  multiples. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $60,000,000  Outstandmg  $19,200,000 

Provisions  of      Of  the  total  amount  authorized  $19,200,000  are  outstanding  as  above,  and  the  balance, 
issue:  $40,800,000,  has  been  reserved  for  additional  construction,  betterments  and  improvements 

to  the  mortgaged  property. 

[  558  ] 


Security:  The  above  bonds  are  a  direct  obligation  of  the  company  and  are  secured  by  a  first  mortgage 

on  its  entire  property,  which  reijresented  June  30,  1912,  an  investment  by  The  New  York, 
New  Haven  &  Hartford  Railroad  Company  of  about  $30,000,000. 

These  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  The  New  York, 
New  Haven  &  Hartford  Railroad  Company  by  endorsement. 

Redemption:      They  are  redeemable  at  110  and  interest  on  any  interest  date  in  amoimts  not  less  than 
$5,000,000. 

Property:  The  company's  line  extends  from  the  Harlem  River,  at  about  Willis  Avenue,  New  York, 

through  the  Bronx  and  Westchester  County  to  Mt.  Vernon,  where  the  line  di\erges,  one  line 
extending  to  New  Rochelle  and  White  Plains,  and  the  other  extending  to  the  east,  to  the  Con- 
necticut State  Line  at  Port  Chester.  Of  the  total  miles  of  track,  74.54,  50.57  miles  are  owned 
in  fee,  the  company  having  perpetual  rights  to  operate  over  the  additional  24  miles. 

The  New  York,  Westchester  &  Boston  Railway  Company  was  formed  January  19,  1910,  under 
the  railroad  laws  of  New  York,  and  under  a  special  act  of  the  legislature  as  a  consolidation  of  an  older 
company  by  the  same  name  and  the  New  York  &  Port  Chester  Railroad  Company.  Of  the  $5,000,000 
stock  of  the  company.  The  New  York,  New  Haven  &  Hartford  Railroad  Company  owns  all  but 
204  shares. 

These  bonds  are  considered  a  legal  in\estment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


PROVIDENCE   SECURITIES   COMPANY 
Debenture  Gold  4s 

Dated  May  1,  1907  Maturing  May  1,  1957 

Interest  payable  May  1  and  November  1  at  New  York  and  New  Haven. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Registered  bonds  of  $10,000. 

Authorized  $19,011,000  Outstanding  $19,180,000 

Security ;  The  above  bonds  are  direct  obligations  of  the  company,  but  are  not  secured  by  a  mortgage. 

They  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  The  New  York,  New 
Haven  &  Hartford  Railroad  Company  by  endorsement. 

Redemption:      The  above  bonds  are  redeemable  at  105  and  interest  on  any  interest  date  beginning  May  1, 
1917,  upon  eight  weeks'  notice. 

The  Providence  Securities  Company  was  incorporated  in  Connecticut  in  1883  under  the  name 
of  the  New  England  Loan  &  Trust  Company,  its  name  being  changed  to  that  of  the  present  title 
on  January  11,  1907.  It  was  created  in  the  interests  of  The  New  York,  New  Haven  &  Hartford  Rail- 
road Company  to  acquire  all  the  stocks  and  bonds  of  the  Rhode  Island  Securities  Company,  which 
controls,  through  the  Rhode  Island  Company,  a  system  of  279  miles  of  street  railways  operated 

[  559  ] 


in  the  State  of  Rhode  Island  under  perpetual  franchises.    The  entire  capital  stock  of  the  Providence 
Securities  Company  is  owned  by  The  New  York,  New  Haven  &  Hartford  Railroad  Company. 

These  bonds  sold  iu  1907  on  a  4.50  to  4.80  basis 

1909  4.85  (bid) 

1910  4.50  to  4.875 

1911  4.65       4.85 
December,  1912  5.05  (bid) 


BOSTON   TERMINAL   COMPANY 
First  Gold  3  Ms 

Dated  February  1,  1897  Maturing  February  1,  1947 

Interest  payable  February  1  and  August  1  on  coupon  bonds, 

at  the  State  National  Bank,  Boston. 

Interest  payable  February  1,  May  1,  August  1  and  November  1,  on  the  registered  bonds. 

Coupon  bonds  of  $1,000,  exchangeable  for  registered  bonds. 
Registered  bonds  of  $1,000  and  multiples. 

Authorized  $14,500,000  Outstanding  $14,500,000 

Security:  The  above  bonds  are  a  direct  obligation  of  the  company  and  are  secured  by  a  first  mortgage 

on  the  South  Terminal  Station,  Boston,  and  a  large  tract  of  railroad  yards  used  by  The  New 
York,  New  Haven  &  Hartford  Railroad,  The  New  England  Railroad,  Providence  &  Boston 
Railroad,  Boston  &  Albany  Railroad,  and  the  Old  Colony  Railroad,  which  companies  pay  as 
rental  in  monthly  installments  a  sum  sufficient  to  cover  expenses,  interest  on  the  above  bonds, 
and  4%  on  the  stock.    The  several  companies  are  jointly  liable  in  case  of  a  forfeit. 

Trustee:  Old  Colony  Trust  Company,  Boston. 

The  Boston  Terminal  Company  was  incorporated  in  Massachusetts  in  June,  1896,  to  construct 
the  above-mentioned  passenger  station  for  all  trains  entering  Boston  on  the  south.  The  capital 
stock  of  the  company  ($500,000)  is  owned  jointly  by  the  five  companies  which  use  the  station. 
They  pay  as  rental  a  sum  sufficient  to  cover  interest  on  the  company's  bonds,  4%  on  its  capital  stock, 
and  all  operating  expenses. 

These  bonds  sold  in  1908  on  a  3.42  to  3.50  basis 

1909  3.25       3.30 

1910  3.70 

1911  3.50       3.57 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Massachusetts  and  Rhode  Island. 


[  560  ] 


NARRAGANSETT   PIER   RAILROAD 

First  Mortgage  4s 

Dated  August  1,  1896  Maturing  August  1,  1916 

Interest  payable  February  1  and  August  1  at  Rhode  Island  Hospital  Trust  Company,  Providence. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $100,000  Outstanding  $70,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  entire  property  of  the  company. 

These  bonds  have  been  GUARANTEED  as  to  INTEREST  by  the  Rhode  Island  Company 
under  the  terms  of  its  lease. 

Trustee:  Rhode  Island  Hospital  Trust  Company,  Providence. 

The  Narragansett  Pier  Railroad  Company  was  chartered  in  the  May  Session  of  the  General 
Assembly  of  Rhode  Island  in  1868.  It  was  incorporated  April  12,  1875,  under  the  laws  of  Rhode 
Island,  and  the  road  was  opened  for  traffic  July  17,  1876.  The  property  of  this  company  was  leased 
on  Jime  30,  1911,  for  a  term  of  99  years  to  the  Rhode  Island  Company  at  a  rental  equal  to  the  inter- 
est on  the  company's  funded  debt  and  4%  annually  on  its  outstanding  stock. 

The  Rhode  Island  Company,  chartered  in  April,  1902,  for  the  purpose  of  uniting  under  a  single 
management  certain  public  service  corporations  of  Providence  and  vicinity,  is  controlled  by  The  New 
York,  New  Haven  &  Hartford  Railroad  Company  through  the  ownership  of  its  entire  capital  stock. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  Massachusetts. 


[  561 


NORTHERN    PACIFIC    RAILWAY   COMPANY 


NORTHERN  PACIFIC  RAILWAY  COMPANY 


HISTORY 

The  original  charter  of  the  Northern  Pacific  Railway  Company  was  granted  by  Congress  in 
1864,  and  its  construction  was  begun  six  years  later  under  the  management  of  Jay  Cooke  and  asso- 
ciates. The  section  from  Duluth  to  Bismark,  on  the  IMissouri  River,  was  completed  in  1873,  and  in 
that  same  year  Mr.  Cooke's  banking  house  failed,  precipitating  the  panic  of  1873.  The  Northern 
Pacific  became  involved  in  its  failure  and  was  sold  under  foreclosure  in  1875. 

Following  the  work  of  Mr.  Cooke  came  that  of  Henry  Villard,  who  resolutely  pushed  the  work 
of  construction;  and,  on  the  9th  of  September  in  1883,  the  entire  main  line  from  Ashland,  Wiscon- 
sin, to  Portland,  Oregon,  was  thrown  open  to  traffic.  As  the  result  of  the  completion  of  this  line, 
the  new  territory  thrown  open  by  it  developed  rapidly.  For  a  few  years  the  growth  of  traffic,  and 
a  corresponding  increase  in  earnmgs,  were  beyond  even  the  expectations  of  its  managers.  In  the 
early  '90s,  however,  both  gross  and  net  earnings  declined  to  such  an  extent  that  the  road  was  unable 
to  meet  its  steadily  increasing  fixed  charges,  and  receivers  were  appointed  for  it  upon  default  of 
certain  interest  payments  on  August  15,  1893,  and  special  receivers  were  appointed  for  the  leased 
lines  and  branches  in  Montana  and  other  states  which  comprised  the  Northern  Pacific  System. 

Under  the  date  of  March  16,  1896,  a  plan  of  reorganization  was  promulgated,  and  upon  the 
assent  of  practically  all  the  security  holders  in  interest,  it  was  declared  operative  on  April  24  of  the 
same  year.  The  new  company  was  created  by  the  Morgan  interests,  including  the  Deutsche  Bank 
of  Berlin,  and  Drexel  &  Company.  Chicago,  as  an  Eastern  terminus,  was  abandoned,  entrance  to 
that  city  having  formerly  been  made  over  the  lines  of  the  Wisconsin  Central  Railroad,  which  had 
been  leased  for  99  years  from  April  1,  1890.  This  lease  was  cancelled  September  27,  1893,  owing  to  a 
default  of  the  rental  charge.  It  was  planned  in  the  reorganization  to  unite  the  main  line,  branches 
and  terminal  properties  under  the  direct  ownership  of  a  single  company  instead  of  several  companies 
as  before;  to  reduce  the  fixed  charges  to  an  amount  safely  within  the  average  earning  power  of  the 
road  and  to  provide  ample  working  capital  for  the  future  development  of  the  property.  The  latter 
was  furnished  by  the  Morgan  interests  and  the  Deutsche  Bank. 

In  1900  and  1901  several  important  acquisitions  were  made  to  the  company's  property,  both  by 
construction  and  consolidation.  In  July,  1900,  the  property,  lands  and  assets  of  the  St.  Paul  & 
Duluth  Railroad  Company  were  taken  over  by  the  Northern  Pacific,  and  all  its  funded  indebted- 
ness was  thereupon  assumed.  The  property  of  the  Seattle,  Lake  Shore  &  Eastern  Railway  Com- 
pany, which  had  formerly  been  owned  by  the  Northern  Pacific  Railroad  Company,  and  abandoned 
in  the  reorganization,  was  again  acquired,  together  with  the  property  of  the  Seattle  &  International 
Railway  Company.  The  Spokane  &  Seattle  Railway,  an  important  link  with  the  Great  Northern 
Railway,  was  absorbed  by  the  Northern  Pacific  in  1900. 

By  far  the  most  important  acquisition  was  that  of  the  Chicago,  Burlmgton  &  Qiiincy  System, 
made  by  the  Great  Northern  Railway  and  the  Northern  Pacific  Railway  jointly.  Almost  the  entire 
capital  stock  of  the  Chicago,  Burlington  &  Quincy  Railroad  was  taken  over  by  the  two,  and  in  ex- 
change therefor  bonds  were  issued  secured  by  the  Burlington  stock.  The  value  of  this  holding  to  the 
Northern  Pacific  is  very  large,  as  the  assets  of  the  Burlington  are  growing  more  and  more  valuable 
each  year. 

On  June  1,  1901,  the  proprietary  railroads  of  this  company  in  the  Province  of  Manitoba,  namely, 
the  Northern  Pacific  &  Manitoba  Railway,  the  Portage  &  Northwestern  Railway,  were  transferred 

[  565  ] 


U)  tlie  government  of  Manitoba  under  a  lease  for  999  years,  the  rental  being  $210,000  the  first  ten 
years,  $225,000  for  the  second  ten  years,  $270,000  for  the  third  ten  years,  and  $300,000  each  year 
thereafter,  the  lessee  having  the  option  of  purchasing  the  property  at  any  time  at  $7,000,000. 

In  August,  1905,  the  Portland  &  Seattle  Railway  Company  was  incorporated,  all  the  capital 
stock  of  which  was  owned  jointly  by  the  Northern  Pacific  Railway  Company  and  the  Great  Northern 
Railway  Company.  The  Portland  &  Seattle  Railway  Company  began  immediately  to  construct 
a  hne  from  Portland,  Oregon,  to  Spokane,  Washington,  connecting  there  with  the  Northern  Pacific 
and  Great  Northern  Railways,  and  also  completing  an  extension  to  Texas  Ferry,  Washington,  which 
connected  with  the  lines  of  the  Northern  Pacific  and  the  Union  Pacific  Railways.  The  road  was 
planned  with  low  curvatures,  there  being  few  curves  as  high  as  three  degrees,  and  with  a  maximum 
grade  eastbound  of  but  eleven  feet  to  the  mile,  permitting  the  handling  of  large  amounts  of  busi- 
ness, both  freight  and  passenger.  On  February  1,  1908,  the  name  of  the  Portland  &  Seattle  Rail- 
way Company  was  changed  to  that  of  the  Spokane,  Portland  &  Seattle  Railway  Company. 

In  1912  the  latter  operated  556  miles  of  road,  including  122  miles  of  road  of  the  Astoria  & 
Columbia  Railroad  Company  merged  in  March,  1911.  In  payment  for  various  advances  since  1905, 
the  Northern  Pacific  received  during  1911  securities  amoimting  to  nearly  $30,000,000,  all  of  which 
were  held  in  the  treasury  of  the  parent  company  in  July,  1912. 

One  of  the  most  valuable  assets  of  the  Northern  Pacific  Railway  Company  is  its  lands,  of  which 
on  June  30,  1912,  9,962,896  acres  remained  unsold.  These  lands  are  situated  in  Minnesota,  North 
Dakota,  Montana,  Idaho,  Washington,  Oregon  and  Wyoming. 

During  the  fiscal  year  of  1912,  177,525  acres  were  sold,  upon  which  $1,524,038  was  realized. 
The  land  contracts  on  hand  to  be  filled  June  30,  1912,  aggregated  $4,385,275.  During  the  decade 
ending  1912  nearly  5,650,000  acres  have  been  sold  to  bring  over  $21,000,000. 


PROPERTY 

At  the  close  of  the  fiscal  year  ending  June  30,  1912,  the  mileage  of  the  Northern  Pacific  Railway 
Company  and  controlled  lines,  comprising  the  Northern  Pacific  Railway  System,  was  as  follows: 

Mileage  owned 6,297.15 

Mileage  controlled 290.01 

Mileage  leased 144.31 

Mileage  used  jointly 10.59 

Total 6,742.06 

Beside  the  above  mileage,  the  system  had  623.86  miles  of  extra  main  track,  of  which  524.99 
miles  were  owned.  The  average  miles  operated  by  the  Northern  Pacific  Railway  Company  during 
1912  were  6,025.09  miles,  and  this  figure  is  used  as  the  basis  of  the  statistics  in  this  report. 

The  Northern  Pacific  System,  like  that  of  the  Great  Northern,  extends  from  Duluth  and  Min- 
neapolis on  the  east,  westerly  across  north  central  Minnesota,  through  central  North  Dakota  and 
southern  Montana,  into  Washington,  connecting  the  growing  cities  of  Portland,  Olympia,  Tacoma 
and  Seattle.  The  two  systems,  until  the  "Puget  Sound  Line"  was  built,  furnished  practically  the 
entire  transportation  service  of  the  great  northwestern  part  of  the  United  States.  The  population 
of  the  States  which  the  Northern  Pacific  crosses  was,  in  1890,  2,050,000;  and  in  1910,  4,496,000. 


[  566  ] 


CAPITALIZATION 

Based  on  the  aunual  report  of  the  Nortliern  Pacific  Railway  Company  for  the  fiscal  year  ending 
Jnne  30,  1912,  its  approximate  capitalization  was  as  follows: 

Capital  stock $248,000,000 

Funded  debt 191,365,500 

Nominal  capital $439,365,500 

Rentals  capitalized  @  5% 10,526,000 

Gross  capitalization $449,891,500 

Securities  o^^^^ed 46,619,949 

Net  capitalization $403,271,551 

Net  capital  per  mile  operated $66,933 

Average  miles  operated 6,025.09 

Net  income  to  net  capital 8.2% 

Fixed  charges  to  net  income 35-7% 

Margin  of  safety 64.3% 

The  above  table  does  not  include  in  funded  debt  $107,613,500,  the  Northern  Pacific's  half  of 
the  4%  Collateral  Bonds  issued  for  the  purchase  of  the  Burlington,  but  does  include  the  funded  debt 
of  the  St.  Paul  &  Duluth  Railroad,  whose  obligations  were  assumed  by  the  Northern  Pacific  in  1900. 

The  company  paid  out  for  rentals  in  1912  over  $526,000,  which,  capitalized  at  5%,  covers  approx- 
imately the  capitalization  of  the  leased  roads.  Among  the  securities  owned  are  included  the  stocks 
and  bonds  of  proprietary,  affiliated  and  controlled  com])anies  unpledged,  amounting  to  nearly 
$47,000,000.    These  are  deducted  in  the  table  above  to  arrive  at  the  net  capitalization. 

The  net  capitalization  per  mile  of  road  operated  was  $66,933,  as  compared  with  $41,874  for 
the  Great  Northern  and  $57,892  for  the  Atchison,  Toj^eka  &  Santa  Fe.  The  average  net  capital 
per  mile  of  the  three,  together  with  the  average  ratio  of  total  net  income  to  average  net  capital  for 
the  decade  ending  June  30,  1912,  are  given  as  follows: 

Ten  years  Net  capitalization  Net  income  to 

per  mile  net  capital 

Northern  Pacific $68,210  8.4% 

Great  Northern 36,055  11.2 

Atchison 56,020  6.1 

It  will  be  seen  that  the  Northern  Pacific  carried  an  average  net  capitalization  for  the  decade 
equal  to  almost  twice  that  of  the  Great  Northern,  and  yet  earned  over  8%  upon  it  as  compared  with 
11.2%  of  the  other.  As  far  as  earning  power  is  concerned,  it  would  not  seem  that  the  Northern 
Pacific  was  over-capitalized. 

The  following  table  is  presented,  giving  the  increase  in  the  company's  capitalization  and  gross 
earnings  since  1900: 

Year  Capital  stock  Funded  debt  Total  capital  Gross  earnings 

Common  Preferred 

1900  .  .   $80,000,000  $75,000,000  $171,346,590  $326,346,590  $30,021,318 
1912  .  .   248,000,000    191,365,500   439,365,500   63,423,946 

Increase 113,018,910   33,402,628 

Per  cent  increase   34%      111% 

[567  J 


The  stock  increases  are  accounted  for  as  follows.  In  January,  1902,  the  preferred  stock 
was  retired  for  an  equal  amount  of  common  stock.  At  the  stockliolders'  meeting  held  on  the  7th 
day  of  January,  1907,  it  was  resolved  "that  the  capital  stock  of  this  corporation  be,  and  the  same 
hereby  is,  increased  by  $95,000,000."  This  increase  was  made  in  order  to  reimburse  the  treasury 
of  the  company  for  expenditures  already  made  and  to  provide  for  necessary  construction,  extensions 
and  acquisitions  in  the  future. 

The  company's  funded  debt  during  the  past  eleven  years  has  risen  but  $20,000,000.  With  a 
34%  increase  in  the  total  capital,  it  will  be  seen  that  gross  earnings  increased  111%,  a  truly  excellent 
showing.  Of  the  capitalization,  nearly  60%  is  made  up  of  stock,  keeping  the  fixed  charges  at  a 
low  level.  These  consumed  in  1912  but  35.7%  of  the  total  net  income,  leaving  a  margin  of  safety 
for  the  interest  on  the  underlying  securities  of  64.3%. 


CHARACTER   OF  TRAFFIC 

The  Northern  Pacific  Railway  is  one  of  those  which  does  not  give  an  itemized  account  of  its 
traffic.  The  ratio  of  freight  to  all  traffic  in  1912  was  69%.  This  figure  has  tended  to  decline  since 
1905,  when  the  ratio  was  as  high  as  73%.  Based  on  the  traffic  statistics  of  the  company  the  follow- 
ing table  has  been  prepared,  giving  the  freight  density,  train  load  tons,  freight  earnings  and  the  aver- 
age rate  per  mile  per  ton  since  and  including  1907: 

Year  Freight  Train  Freight  Average  rate 

density  load  earnings  per  mile 

tons  per  ton 

1907 1,011,103  407  48,395,878  $.0087 

1908 915,388  430  46,423,836  .0090 

1909 927,613  435  47,073,305  .0089 

1910 939,997  429  48,758,736  .0090 

1911 806,834  461  43,332,918  .0090 

1912 838,370  511  43,793,522  .0087 

There  appears  a  discomforting  decline  in  the  number  of  tons  carried  one  mile  per  mile  of  road 
operated,  also  a  sharp  decline  in  freight  earnings  during  the  period,  all  of  which  suggests  the  growing 
importance  of  the  "Puget  Sound  Line"  as  a  competitor.  Freight  earnings  decreased  over  $5,200,000 
in  1911;  $2,000,000  of  this  decrease  was  due  to  less  gTain  handled,  and  $1,600,000  to  the  fact  that 
nearly  10,000  less  cars  of  lumber  and  shingles  were  moved,  and  $700,000  was  due  to  a  decrease  in 
earnings  from  long  haul  freight  moving  from  the  Mississippi  River  and  points  east,  to  Butte,  Spo- 
kane, Tacoma  and  Portland,  caused  by  less  construction  and  expansion  of  general  business.  Only  a 
slight  improvement  is  evident  in  the  1912  figures. 

The  number  of  tons  of  revenue  freight  per  train  load,  however,  has  increased  by  50  tons, 
or  10.5%,  showing  greater  efficiency  of  operation.  With  an  equal  operating  efficiency  during  the 
current  year,  1912-1913,  together  with  a  bumper  crop  which  is  promised,  the  Northern  Pacific 
should  recover  very  materially  from  the  decline  in  freight  earnings  during  1911  and  1912. 

Fully  one-quarter  of  the  gross  business  of  the  Northern  Pacific  is  represented  by  its  passenger 
traffic.  In  the  past  it  has  been  the  evident  intent  of  its  managers  to  make  the  Northern 
Pacific  a  tourist  route,  owing  to  the  beauty  of  the  country  through  which  it  passes,  and  espe- 
cially to  the  fact  that  the  grades  are  in  many  places  somewhat  too  heavy  for  profitable  freight 
transportation.  Not  that  a  large  vohnne  of  freight  cannot  be  carried  at  a  profit  over  the  Northern 
Pacific  lines,  but  that  the  Great  Northern,  with  lower  grades,  can  handle  through  freight  more 
profitably. 

Following  are  a  few  of  the  more  salient  passenger  statistics  of  the  Northern  Pacific  for  the  years 
1907  to  1912  inclusive: 

[  568  ] 


Passenger 

Number  of 

Passenger 

Average  rate 

density 

passengers 

earnings 

per  passenger 

per  tram 

per  mile 

132,759 

75 

$16,924,187 

$.0226 

141,018 

80 

18,133,238 

.0228 

135,327 

74 

17,330,608 

.0226 

169,431 

74 

21,333,312 

.0218 

127,609 

63 

17,278,812 

.0228 

107,802 

54 

15,343,752 

.0236 

1907 

1908 

1909 

1910 

1911 

1912 

During  1911  it  will  be  noted  that  passenger  earnings  declined  over  $4,000,000.  The  absence  of 
events  like  tlie  Alaska- Yukon-Pacific  Exposition,  which  caused  the  high  earning  figures  of  1910, 
or  the  opening  of  the  Flathead,  Coeur  d'Alene  and  Spokane  Indian  Reservations,  coupled  with 
lessened  business  activity,  all  contriliuted  to  this  large  decrease  in  earnings. 

Passenger  density  —  the  number  of  passengers  carried  one  mile  per  mile  of  road  operated  — 
was  highest  in  1910  owing  to  the  Exposition,  and  even  with  a  much  lower  rate  earnings  increased 
over  $4,000,000  over  the  figures  of  1909.  Since  1910  both  passenger  density  and  passengers  per 
train  carried  have  steadily  declined,  the  former  from  169,431  to  107,802,  and  the  latter  from  74  to 
54.  This  decline  has  been  attributed  in  part  to  two  causes,  one  the  successful  competition  of  the 
Chicago,  Milwaukee  &  St.  Paul  for  through  passenger  business,  and  the  other,  the  growing  use  of 
automobiles  in  the  territory  served  by  the  company.  To  meet  the  competition  of  the  St.  Paul,  the 
Northern  Pacific  and  the  Chicago  &  Northwestern  Railway  began  the  operation  of  through  trains 
from  Chicago  to  the  Pacific  Coast  in  December,  1911. 


EARNINGS 

During  the  past  six  years  the  Northern  Pacific  earned,  both  gross  and  net,  the  following  amounts: 

Year  Average  miles  Gross  Per  Net  Per 

operated  earnings  mile  earnings  mile 

1907 5,444  $68,534,832  $12,590  $30,870,515  $5,671 

1908 5,633  68,235,484  12,112  28,370,450  5,036 

1909      5,671  68,460,747  12,071  30,440,742  5,368 

1910 5,765  74,525,826  12,927  28,538,420  4,950 

1911      5,950  64,912,831  10,908  25,183,071  4,231 

1912 6,025  63,423,946  10,526  25,265,430  4,193 

Gross  earnings,  in  1907  the  highest  ever  reported,  were  equalled  during  the  years  1908  and  1909 
in  spite  of  the  fact  that  throughout  the  Northwest  generally  business  conditions  were  somewhat 
depressed.  It  will  be  noted,  however,  that  gross  earnings  increased  nearly  $6,000,000  in  1910, 
due  to  greater  business  activity  in  the  territory  served  by  the  company's  lines.  As  has  been 
shown  above,  the  Alaska  Exposition,  held  in  Seattle  from  June  1  to  October  16,  1909,  induced 
a  large  passenger  movement,  and  the  opening  of  Indian  Reservations  within  reach  of  the  company's 
lines,  and  a  very  general  demand  for  land  all  through  the  country  resulted  in  a  large  volume  of 
travel. 

Taking  advantage  of  the  enormous  volume  of  gross  earnings  in  1910,  the  company  increased 
very  materially  its  output  for  maintenance.  Diu-ing  that  year  $3,000,000  more  was  spent  for  main- 
tenance of  way  than  in  1909,  the  increase  being  38%.  $1,150,000  more  was  charged  for  upkeep  of 
equipment  than  in  the  previous  year,  or  a  gain  of  15%,  and  $3,750,000  additional  was  required  to 
conduct  transportation  due  prhnarily  to  an  increase  of  passenger  train  mileage  of  31%. 

In  the  fiscal  year  ending  June  30,  1911,  the  Northern  Pacific  was  confronted  with  a  loss  of  nearly 

[  569  ] 


$10,000,000  in  gross  revenue,  but  in  spite  of  this,  the  surplus  available  for  dividends  was  only  about 
$1,800,000  below  1910,  the  percentage  earned  bemg  equal  to  8.2%  compared  with  8.9%  in  1910. 
The  important  change  in  the  year's  results  was  the  curtailment  of  operating  expenses,  so  that  net 
earnings  were  but  slightly  over  $3,000,000  below  those  of  1910.  Considering  the  fact  that  the 
Puget  Sound  Extension  of  the  Chicago,  Milwaukee  &  St.  Paul  took  some  of  the  traffic  which  niight 
ordinarily  have  been  the  Northern  Pacific's,  and  the  fact  that  the  Exhibition  traffic  of  two  years 
ago  was  counted  in  the  1910  results,  together  with  the  general  lassitude  which  prevailed  last  year 
throughout  the  Northwest,  the  returns  of  1911  do  not  seem  at  all  as  bad  as  they  at  first  appear 
to  be. 

During  1912  earnings  declined  still  further,  owing  to  the  quietness  of  business  in  the  territory 
served  by  the  company's  lines.  The  years  1911  and  1912  were  trying  ones,  but  the  first  six  months 
of  the  current  year  of  1913  has  shown  material  improvements  both  in  earnings  and  traflSc. 


MAINTENANCE 

To  offset  the  decline  in  gross  earnings  of  1911,  maintenance  figures  were  scaled  down  substan- 
tially. Maintenance  of  way  charges  decreased  $2,777,500,  or  21%,  and  maintenance  of  equipment 
charges  were  reduced  $1,081,000,  or  12%.  The  ability  to  reduce  maintenance  expenses  reflects 
the  excellent  condition  of  the  company's  rolling  stock  and  road  bed,  and  was  only  possible  because 
of  the  liberal  outlays  made  in  1910. 

Following  are  the  amounts  which  have  been  spent  for  maintenance  of  way  and  equipment, 
also  figured  on  a  per  mile  basis,  for  the  years  1907  to  1912  inclusive: 

Year  Maintenance  Total  Per 

Way  Equipment  maintenance  mile 

1907 $9,145,546  $5,542,208  $14,687,754  $2,697 

1908 8,984,355  8,436,766  17,421,121  3,091 

1909 7,847,050  7,845,689  15,692,739  2,766 

1910 10,842,955  8,992,137  19,835,092  3,439 

1911 8,065,462  7,911,231  15,976,693  2,684 

1912 7,861,490  7,207,716  15,069,206  2,500 

It  is  interesting  to  compare  the  average  traiEc  density,  amounts  spent  per  mile  of  road,  and  the 
per  cent  of  total  maintenance  to  gross  of  the  Northern  Pacific,  with  the  Great  Northern  and  the 
Atchison,  Topeka  &  Santa  Fe.  The  following  table  shows  the  average  in  each  case  for  six  years 
ending  June  30,  1912: 

TrafiSc 
density 


Northern  Pacific 1,042,210 

Great  Northern 875,925 

Atchison,  Topeka  &  Santa  Fe      ....        800,140 


ADDITIONS   AND   BETTERMENTS 


itenanco 

Per  cent  of 

rmile 

maintenance 

to  gross 

!,863 

24.1 

5,467 

28.6 

;,043 

30.1 

Prior  to  1907  large  amounts  annually  were  expended  from  surplus  earnings  for  additions  and 
betterments  and  for  new  equipment.  During  the  fiscal  year  of  1908  $2,784,000  were  appropriated 
for  the  Insurance  Fund,  which  had  a  credit  of  $5,542,517  on  June  30,  1912.  Since  1908  no  special 
a])proprialion  has  been  made  from  earnings  for  this  purpose. 

[  570  ] 


The  following  amounts  lia\'e  been  charged  to  the  Capital  Account  of  the  Northern  Pacific 
Railway  and  spent  for  additions  and  betterments  since  1907: 

Year  Amount 

1907 $40,108,180 

1908 24,302,672 

1909 14,894,753 

1910 14,307,262 

1911 7,998,105 

1912 7,090,271 

For  six  years $108,701,243 

Average  for  one  year 18,116,874 

Beside  the  above  amount  the  following  advances  have  been  made  to  sundry  companies  during 
the  past  five  years: 

Year  Amount 

1907      $19,641,440 

1908      10,922,158 

1909      7,046,395 

1910      14,340,357 

1911      4,221,167 

1912      1,135,605 

For  six  years $57,307,122 

Average  for  one  year 9,551,187 

From  the  above  figures  it  will  be  seen  that  over  $165,000,000  has  been  poured  into  the  Northern 
Pacific  System  during  the  past  six  years.  Of  this  amount  the  Spokane,  Seattle  &  Portland  Railway 
settled  for  advances  made  to  it  by  the  Northern  Pacific  by  giving  the  latter  its  securities,  the  total 
value  of  which  was  $29,818,900.  This  settlement  was  made  effective  during  1911.  For  "Railway 
Development  in  Oregon"  $5,000,000  was  credited  on  "Advances"  accoimt  in  1912,  leaving  a  bal- 
ance outstanding  on  the  balance  sheet  of  the  company,  June  30,  1912,  of  $24,039,362. 


DIVIDENDS 

In  the  early  days  of  the  Northern  Pacific's  history  dividends  were  somewhat  erratic  and  spare. 
Since  the  reorganization  after  the  foreclosure  of  1893  dividends  were  paid  regularly  upon  the  pre- 
ferred stock  until  it  was  cancelled,  and  dividends  have  been  paid  regularly  on  the  common  stock 
since  1899. 

Following  is  the  dividend  record  of  the  Northern  Pacific  since  1890: 

Year  Rate  on  Year  Rate  on 

Preferred  Preferred      Common 

1890-1  4%  1899       .......     4%  2% 

1892  2  1900-1 4  4 

1893-7  1902        1*  54 

1898  5  1903-12 7 


Final  dividend 

[  .071   ] 


During  the  ])ast  six  years  the  Northern  Pacific  has  earned  over  and  above  its  dividend  require- 
ments the  following  amounts: 

Year  Amount  Year  Amount 

1907   $6,697,176*     1910 $4,936,259 

1908   6,258,117t     1911 3,082,266 

1909   7,534,350      1912 2,303,815 

On  the  general  balance  sheet  of  the  Northern  Pacific  Railway  Company  for  the  year  ending 
June  30,  1912,  the  Profit  and  Loss  Account,  not  including  Appropriated  Surpluses  of  $5,542,517, 
stood  at  $80,260,438,  an  amount  equal  to  32%  of  the  company's  capital  stock  outstanding. 

STATISTICS 

Following  are  the  capitalization,  earnings  and  traffic  statistics  of  the  Northern  Pacific  Railway 
based  on  miles  average  operated  for  the  year  1900  and  for  the  years  1905  to  1912  inclusive. 

The  Northern  Pacific's  share  of  the  Great  Northern-Northern  Pacific-Chicago,  Burling- 
ton &  Quincy  Collateral  Trust  Joint  4s  are  not  included  in  the  "Funded  debt,"  hence  the  Chicago, 
Burlington  &  Quincy  Stock,  as  collateral,  is  not  included  in  "Securities  owned." 

*  After  deducting  $.5,926,753  for  depreciation  of  equipment.  t  After  deducting  $2,784,9j0  for  Insurance  Fund. 


[  572  ] 


NORTHERN   PACIFIC   RAILWAY 


Fiscal 

Capital 

Funded 

Rentals                 Gross 

Owned  by 

Net 

Average 

Extra 

year 

stock 

debt 

@  5%                 capital 

company 

$2,828 

capital 

miles 
operated 

4,715 

main 
track 

1900 

$32,874 

$36,341 

$478              $69,693 

$66,865 

63 

1905 

29,162 

34,896 

603                64,661 

301 

64,360 

5,315 

115 

1906 

28,698 

34,502 

594                63,794 

277 

63,517 

5.401 

124 

1907 

31,175 

34,295 

589                66,059 

258 

65,801 

5,444 

248 

1908 

38,679 

33,772 

1,074                73,525 

240 

73,285 

5,633 

330 

1909 

43,731 

33,757 

1,188                78,676 

227 

78,449 

5,671 

470 

1910 

43,018 

33,122 

1,769                77,909 

1,467 

76,442 

5,765 

504 

1911 

41,680 

31,987 

1,886                75,553 

8,358 

67,195 

5,950 

574 

1912 

41,162 

31,762 

1,746                74,670 

7,737 

66,933 

6,025 

624 

Fiscal 

Gross 

Maintenance 

Transportation         Net 

Other 

Total 

Fixed         Surplus  avail- 

year 

operating 

and  general        operating         income              net 

charges 

able  for 

revenue 

Way        Equipment          e.xpense            revenue 

income 

dividends 

1900 

$6,368 

$1,033            $473 

$1,547             $3,314 

$145 

$3,459 

$1,450 

$2,009 

1905 

9,543 

1,382              950 

2,712             4,499 

361 

4,860 

1,639 

3,221 

190G 

11,335 

1,387           1,100 

3,270              5,578 

318 

5,896 

1,732 

4,164 

1907 

12,590 

1, 

579            1,018 

4,222              5,671 

429 

6,100 

1,788 

4,312 

1908 

12,112 

1, 

594           1,497 

3,985              5,036 

823 

5,859 

1.777 

4,082 

1909 

12,071 

1, 

383           1,383 

3,937              5,368 

727 

6,095 

2,279 

3,816 

1910 

12,927 

1,880           1,559 

4,538              4,950 

791 

5.740 

1,875 

3,865 

1911 

10,908 

1,355           1,329 

3,993              4,231 

971 

5,202 

1,769 

3,433 

1912 

10,526 

1,305           1,195 

3,833              4,193 

887 

5,080 

1,816 

3,264 

Fiscal 

Divi- 

Other 

Surplus 

Operating         Total        Conducting 

Fixed             G 

ross 

Net 

Per  cent 

year 

dends 

charges 

expenses         mainte-         transpor- 

charges          earnings 

income 

earned  on 

to 

to  gross         nance  to         tation  to 

to  gross          to 

gross 

to  net 

capital 

ncome 

earnings            gross 

gross            earnings           capital 

capital 

stock 

$1,781 

$636 

$1,145 

earnings       earnings 

5.2% 

1900 

47.99%         23.8% 

24.2% 

22.7% 

9.1% 

6.1% 

1905 

2,041 

564 

616 

52.80             24.4 

28.4 

17.1              14.7 

7.5 

11.0 

1906 

2,005 

1,126 

1,033 

50.80             22.0 

28.8 

15.2              17.7 

9.3 

14.5 

1907 

1,993 

1,088 

1,231 

55.00             21.5 

33.5 

14.2              19.0 

9.2 

13.8 

1908 

2,477 

494 

1,111 

57.90             25.0 

32.9 

14.6              16.4 

8.0 

10.5 

1909 

2,488 

1,328 

55.54             22.9 

32.6 

18.8              15.3 

7.9 

8.7 

1910 

3,011 

854 

61.71             26.6 

35.1 

14.5              16.5 

7.5 

8.9 

1911 

2,917 

516 

61.20             24.6 

36.6 

16.2              14.4 

7.4 

8.2 

1912 

2.882 

382 

60.16             23.8 

36.4 

17.2              14.1 

7.6 

7.9 

Fiscal 

Train 

Maintenance        Conducting       Train           Rate  per  mile 

Freight 

Train 

Freight  Passenger, 

year 

mile 

per  revenue       transportation      mile 

density 

load 

to  all 

freight 

earnings 

train  mile           per 

revenue     earnings           Per 

Per 

revenue      traffic 

and 

(gross) 

train  mile          (net)        passenger        ton 

tons 

company 

Way 

Equipment 

cars 

1900 

$2.86         $.464 

$.212           $ 

694           $1,490       $.0235 

$.0099 

407,723 

328 

74% 

24,773 

1905 

2.67 

.393 

.270 

771             1.236         .0223 

.0083 

820,257 

367 

73 

39,200 

1900 

2.85 

.354 

.281 

834             1.381         .0209 

.0083 

971,165 

400 

72 

40,951 

1907 

3.01 

.407 

.246           1 

020             1.337         .0226 

.0087 

1,011,103 

407 

70 

49,432 

1908 

3.22 

.427 

.400           1 

066             1.327         .0228 

.0090 

915,388 

430 

71 

49,029 

1909 

3.14 

.361 

.361           1 

028             1.390         .0226 

.0089 

927,613 

435 

69 

48,920 

1910 

2.94 

.430 

.356           1 

037             1.117         .0218 

.0090 

939,997 

429 

65 

51,690 

1911 

2.95 

.369 

.362           1 

089             1.130         .0228 

.0090 

806,834 

461 

67 

50,721 

1912 

.369 

.339           1 

085             1.158        .0236 

[573] 

.0087 

838,370 

511 

69 

50,948 

BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Northern  Pa- 
cific Railway  System,  together  with  the  bases  on  which  they 
have  sold  during  the  decade  ending  December  31,  1912: 


NORTHERN  PACIFIC   RAILWAY 

Prior  Lien  Mortgage  4s 

Dated  November  10,  1896  Maturing  January 

Interest  payable  January  1,  April  1,  July  1  and  October  1  at  J.  P.  Morgan  &  Company, 
New  York,  and  in  Berlin  at  4.20  marks  per  dollar. 


Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $100  and  multiples. 


Authorized  $130,000,000 


Outstanding  $108,068,500 
Per  mile  .    .  19,700 


Provisions  of      Of  the  total  amount  authorized,  $108,068,500  are  outstanding  as  above  ($3,933,000  of  which 
issue:  were  in  the  company's  treasury  June  30,  1912),  $6,103,500  have  been  purchased  and  can- 

celled by  the  sinking  fund,  $7,887,000  have  been  reserved  to  retire  the  St.  Paul  &  Northern 
First  6s  of  1923,  and  $7,941,000  have  been  reserved  for  construction,  acquisitions  of  owned  and 
controlled  property,  and  the  acquisition  of  securities  at  not  exceeding  $1,500,000  yearly. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  or  by  collateral  on  5,465.32  miles  of  road, 

including  land  grants,  terminals,  securities,  equipment  and  future  acquisitions.  They  are 
secured  by  a  first  mortgage  on  4,816.4  miles  of  road,  and  in  effect  by  a  first  mortgage  on  476.24 
miles  of  road,  being  a  first  collateral  lien  on  three  entire  issues  of  first  mortgage  bonds  aggre- 
gating $8,155,000.  They  are  further  secured  by  a  second  mortgage  on  172.68  miles  covered 
by  the  first  lien  of  the  St.  Paul  &  Northern  Pacific  First  6s  of  1923,  and  are  additionally  secured 
by  a  deposit  with  the  trustee  of  $821,000  capital  stocks  of  subsidiary  companies. 

Sinking  fund:  One-half  of  the  net  proceeds  received  from  the  sales  of  land,  which  amount  not  to  exceed 
$500,000,  is  to  be  applied  annually  to  purchase  these  bonds  at  not  over  110.  Bonds  so  pur- 
chased are  cancelled.  The  balance  of  the  proceeds  of  the  land  sales  plus  the  excess  over  the 
$500,000  mentioned  above,  is  to  be  set  aside  by  the  trustee  as  a  cash  fund  to  be  used  for  con- 
struction, acquisitions  of  property  and  of  securities  at  not  exceeding  $1,500,000  per  annum. 

Equity:  These  bonds  are  prior  in  lien  to  the  Northern  Pacific  General  Lien  Mortgage  3s  of  2047,  a 

sufficient  number  of  which  have  been  reserved  to  retire  this  issue  at  maturity. 

Trustee :  Mercantile  Trust  Company,  New  York. 


These  bonds  sold  in  1902  on  a  3.75  to  3.90  basis 


1903 

3.85 

4.00 

1904 

3.75 

3.98 

1905 

3.73 

3.85 

1906 

3.75 

3.95 

1907 

3.92 

4.25 

1908 

3.85 

4.08 

1909 

3.85 

3.98 

1910 

3.96 

4.05 

1911 

3.96 

4.05 

1912 

4.00 

4.10 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire,  Vermont,  Massa- 
chusetts and  Rhode  Island. 


[  576 


NORTHERN   PACIFIC   RAILWAY 
General  Lien  Mortgage  3s 


Dated  November  10,  1896 


Maturing  January  1,  2047 
Interest  payable  February  1,  May  1,  August  1  and  November  1  at  J.  P.  Morgan  &  Company, 
New  York,  and  in  Berlin  at  4.20  marks  per  dollar. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $100  and  multiples. 


Authorized  $190,000,000 


Outstanding  $60,000,000 
Per  mile  .    .  11,000 


Provisions  of      Of  the  total  amount  authorized,  $60,000,000  are  outstanding  as  above,  of  which  $8,828,500 
issue:  are  in  the  treasury  of  the  companj^  and  $130,000,000  have  been  reserved  to  retire  the  North- 

ern Pacific  Prior  Lien  4s  of  1997. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  or  by  collateral  on  5,465.32  miles  of  road 

including  land  grants,  terminals,  securities,  equipment  and  future  acquisitions.  They  are 
secured,  by  a  second  mortgage  on  4,816.4  miles  of  road  covered  by  the  first  lien  of  the  Prior 
Lien  4s  of  1997,  and,  in  effect,  by  a  second  mortgage  on  476.24  miles  of  road,  being  a  second 
collateral  lien  on  three  entire  issues  of  first  mortgage  bonds  aggregating  $8,155,000.  They 
are  further  secured  by  a  third  mortgage  on  172.68  miles  of  road  covered  by  the  first  lien  of 
the  St.  Paul  &  Northern  Pacific  First  6s  of  1923  and  by  a  second  collateral  lien  on  securities 
deposited  with  the  Trustee  amounting  to  $821,000. 

Sinking  fund :  The  unapplied  balance  of  the  sinking  fund  of  the  Prior  Lien  4s  of  1997  is  to  revert  to  the 
benefit  of  this  issue  and  to  be  used  for  the  purchase  and  cancellation  of  these  bonds  at  not 
over  par,  whenever  the  said  balance  may  amount  to  $50,000.  In  case  these  bonds  are  not 
procurable  at  par,  this  balance  is  to  be  applied  to  the  purchase  of  securities  legal  for  New 
York  savings  banks. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


ST.  PAUL   &  NORTHERN   PACIFIC   RAILWAY 

First  Mortgage  6s 

Dated  June  1,  1883  Maturing  February  1,  1923 

Interest  payable  on  coupon  bonds  on  February  1  and  August  I,  and  on  registered  bonds  on 

February  1,  May  1,  August  1  and  November  1  at  J.  P.  Morgan  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000. 


Authorized  $10,000,000 


Outstanding  $7,887,000 
Per  mile  .    .  45,600 


Under  the  terms  of  the  Northern  Pacific  General  Lien  3s  of  2047,  no  further  bonds  of  this 
issue  may  be  issued. 

[577] 


Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  St.  Paul  to 

Staples,  Minn.,  and  branch,  totalling  172.68  miles.    They  are  further  secured  by  the  equip- 
ment of  the  line  and  its  land  grants. 

These  bonds  have  been  ASSUMED  by  the  Northern  Pacific  Railway  Company. 

Smking  fund :  The  proceeds  of  the  sale  of  lands  shall  be  invested  in  these  bonds  at  a  price  not  exceeding  120. 
Bonds  so  purchased  are  to  be  cancelled  and  if  not  purchasable  at  that  price,  to  be  held  as  a 
sinking  fund  for  the  payment  of  this  issue  at  maturity.  Up  to  June  30,  1911,  $134,000  of 
these  bonds  had  been  thus  retired. 

Equity:  These  bonds  are  prior  in  Uen  to  the  Northern  Pacific  Prior  Lien  4s  of  1997,  a  suflScient  num- 

ber of  which  have  been  reserved  to  retire  this  issue  at  maturity. 

Trustee:  Central  Trust  Company,  New  York. 

The  St.  Paul  &  Northern  Pacific  Railway  was  chartered  as  the  Western  Railroad  of  Minnesota 
January  29,  1874.  It  was  opened  for  traffic  November  1,  1877,  and  in  the  following  May  it  was 
leased  to  the  Northern  Pacific  Railroad  Company  for  99  years  at  a  rental  of  35%  of  gross  earnings 
for  five  years  and  40%  thereafter. 

In  1883  the  entire  capital  stock  of  the  company  was  acquired  by  the  Northern  Pacific  Company, 
and  on  May  9  of  that  year  the  company  was  reorganized  under  the  name  of  the  St.  Paul  &  Northern 
Pacific  Railway  Company,  and  a  new  lease  of  the  road  for  999  years  was  made  to  the  Northern 
Pacific  Railway  Company,  the  latter  guaranteeing  as  rental  40%  of  gross  receipts,  a  figure  never  to 
be  less  than  the  interest  upon  the  entire  issue  of  bonds. 

The  property  of  the  St.  Paul  &  Northern  Pacific  Railway  Company  was  merged  with  the 
Northern  Pacific  Railway  Company  in  1896,  and  its  funded  indebtedness  was  thereupon  assumed 
by  the  latter. 


These  bonds  sold  in  1902  on 

a  3.95  to  4.05  basis 

1903 

4.02 

4.40 

1904 

4.10 

4.28 

1905 

3.97 

4.02 

1906 

3.95 

4.17 

1907 

4.08 

4.55 

1908 

3.95 

4.55 

1909 

4.02 

4.55 

1910 

4.18 

4.45 

1911 

4.20 

4.35 

1912 

4.25 

4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Vermont, 
Massachusetts  and  Rhode  Island. 


[578] 


NORTHERN  PACIFIC  RAILWAY 

St.  Paul-Duluth  Division  Mortgage  4s 

Dated  June  15,  1900  Maturing  December  1,  1996 

Interest  payable  June  1  and  December  1  at  J.  P.  Morgan  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000. 


Authorized  $20,000,000 


Outstanding  $8,080,000 
Per  mile  .    .  30,800 


Provisions  of      Of  the  total  amount  authorized  $8,080,000  are  outstanding  as  above,  $2,339,000  have 
issue:  been  redeemed  by  the  sinking  fund  and  cancelled,  $4,724,000  have  been  reserved  for  prior 

liens,  $407,000  have  been  reserved  for  improvements  on  existing  property,  and  $4,450,000 
have  been  reserved  for  extensions  and  additions. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  261.68  miles  of  road,  together  with 

equipment,  terminals  and  securities.  They  are  secured  by  a  first  mortgage  on  28.59  miles 
of  road,  by  a  second  mortgage  on  5  miles,  covered  by  the  first  lien  of  the  St.  Paul  &  Duluth 
First  Consolidated  4s  of  1968,  by  a  third  mortgage  on  17.08  miles  covered  by  the  first  lien  of 
the  St.  Paul  &  Duluth  Second  Mortgage  5s  of  1917,  a  fourth  mortgage  on  189.50  miles  covered 
by  the  first  lien  of  the  St.  Paul  &  Duluth  First  5s  of  1931  and  the  Duluth  Short  Line  First  5s 
of  1916,  and  by  a  fifth  mortgage  on  20.52  miles  covered  by  the  first  lien  of  the  Taylor's  Falls  & 
Lake  Superior  First  6s  of  1914.  These  bonds  are  additionally  secured  by  a  first  collateral 
lien  on  the  entire  issue  of  the  Northwestern  Improvement  Company  Debenture  Bonds  cov- 
ering the  lands  granted  to  the  St.  Paul  &  Duluth  Railroad  Company. 

Sinking  fund :  The  proceeds  from  the  sale  of  lands  covered  by  the  Northwestern  Improvement  Company 
Debentiu-e  Bonds  mentioned  above  shall  be  applied  to  purchase  these  bonds  at  not  exceed- 
ing 105  and  interest.  If  not  so  purchasable  at  this  price,  the  proceeds  are  to  be  applied  to 
betterments  of  and  additions  to  the  property  mortgaged. 


Trustee: 


Guaranty  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  3.90  to  4.00  basis 


1903 

3.95 

4.15 

1904 

3.97 

4.12 

1905 

3.95 

4.05 

1906 

3.98 

4.15 

1907 

4.15 

1908 

4.00 

4.50 

1909 

4.05 

4.20 

1910 

4.10 

4.15 

1911 

4.08 

4.17 

1912 

4.15 

4.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


[579  ] 


ST.  PAUL    &   DULUTH   RAILROAD 
First  Mortgage  5s 

Dated  July  1,  1881  Maturing  August  1,  1981 

Interest  payable  February  1  and  August  1  at  J.  P.  Morgan  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $1,000,000  Outstanding  $1,000,000 

Per  mile  .    .  5,200 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  192.28  miles  of  road,  together  with 

equipment  and  future  acquisitions.  They  are  secured  by  a  first  mortgage  on  171.75  miles 
of  road  including  the  line  from  St.  Paul  to  Duluth,  Minn.,  and  by  a  second  mortgage  on 
20.52  miles  covered  by  the  first  lien  of  the  Taylors  Falls  &  Lake  Superior  First  6s  of  1914. 

These  bonds  have  been  ASSUMED  by  the  Northern  Pacific  Railway  Company. 

Equity:  These  bonds  are  prior  in  lien  to  the  St.  Paul  &  Duluth  Second  5s  of  1917  and  the  First  Con- 

solidated 4s  of  1968,  also  the  Northern  Pacific  St.  Paul-Duluth  Division  4s  of  1996,  a  suf- 
ficient number  of  which  have  been  reserved  to  retire  this  issue  at  maturity. 

Trustee:  Central  Trust  Company,  New  York. 

The  St.  Paul  &  Duluth  Railroad  was  chartered  under  the  laws  of  Minnesota  on  May  23,  1857, 
under  the  name  of  the  Lake  Superior  &  Mississippi  Railroad  Company.  The  road  was  opened  for 
traffic  September  15,  1870,  at  which  time  it  was  leased  to  the  Northern  Pacific  Railroad  Company, 
the  lease  terminating  May  1,  1874.  The  Lake  Superior  &  Mississippi  Railroad  defaulted  the  in- 
terest on  its  bonds  January  1,  1875,  and  the  property  was  sold  under  foreclosure  May  1,  1877.  A 
new  company  under  the  present  title  was  formed  June  27,  1877.  The  property  of  the  St.  Paul  & 
Duluth  Railroad  Company  was  merged  with  that  of  the  Northern  Pacific  Railway  Company  in 
June,  1900,  at  which  time  the  latter  assumed  its  funded  indebtedness. 

These  bonds  sold  in  1902  on  a  3.75  to  3.95  basis 


1903 

4.23 

1905 

4.12 

1906 

4.15 

1907 

3.88 

1909 

4.68 

1910 

4.28 

1911 

4.33  (bid) 

1912 

4.45 

These  bonds  are  considered  a  leg.al  investment  for  savings  banks  in  Maine,  New  Hampshire,  Vermont, 
Massachusetts  and  Rhode  Island. 


[  580  ] 


ST.  PAUL   &  DULUTH   RAILROAD 

Second  Mortgage  Currency  5s 

Dated  October  1,  1887  Maturing  October  1,  1917 

Interest  payable  April  1  and  October  1  at  J.  P.  Morgan  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $2,000,000 


Security : 


Equity: 


Trustee: 


Outstanding  .$2,000,000 
Per  mile  .    .  8,800 

The  above  bonds  are  secured  by  a  direct  mortgage  on  227.1  miles  of  road,  together  with 
equipment.  They  are  secured  by  a  first  mortgage  on  17.08  miles,  a  second  mortgage  on  189.5 
miles,  covered  by  the  first  liens  of  the  St.  Paul  &  Duluth  First  5s  of  1931  and  the  Duluth 
Short  Line  First  5s  of  1916,  and  by  a  third  mortgage  on  20.52  miles  of  road  covered  by  the 
first  lien  of  the  Taylors  Falls  &  Lake  Superior  First  6s  of  1914. 

These  bonds  have  been  ASSUMED  by  the  Northern  Pacific  Railway  Company. 

These  bonds  are  prior  in  lien  to  the  First  Consolidated  4s  of  1968  and  the  Northern  Pacific 
St.  Paul-Duluth  Division  4s  of  1996,  a  suflEicient  number  of  which  have  been  reserved  to 
retire  this  issue  at  maturity. 

Central  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  3.88  to  4.10  basis 


1903 

4.33 

4.55 

1904 

4.15 

4.45 

1905 

4.05 

4.18 

1906 

3.87 

4.12 

1907 

3.95 

5.00 

1908 

4.50 

4.72 

1909 

5.18 

5.37 

1910 

4.45 

4.65 

1911 

4.50 

1912 

4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


ST.  PAUL   &  DULUTH   RAILROAD 

First  Consolidated  Mortgage  Gold  4s 

Dated  June  1,  1898  Maturing  June  1,  1968 

Interest  payable  June  1  and  December  1  at  J.  P.  Morgan  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $5,000,000  Outstanding  $1,000,000 

Permile  .    .  4,300 

No  further  bonds  may  be  issued  than  are  outstanding. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  232.1  miles  of  the  company's  road, 

together  with  equipment.    They  are  secured  by  a  first  mortgage  on  5  miles  of  road,  a  second 
[  581  ] 


mortgage  on  17.08  miles,  covered  by  the  first  mortgage  of  the  St.  Paul  &  Duluth  Second  5s 
of  1917,  a  third  mortgage  on  189.5  miles  covered  by  the  first  lien  of  the  St.  Paul  &  Duluth 
First  5s  of  1931,  and  that  of  the  Duluth  Short  Line  First  5s  of  1916,  and  by  a  fourth  mortgage 
on  20.52  miles  covered  by  the  first  lien  of  the  Taylor's  Falls  &  Lake  Superior  First  6s  of  1914. 

These  bonds  have  been  ASSUMED  by  the  Northern  Pacific  Railway  Company. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Northern  Pacific  St.  Paul-Duluth  Division  4s  of 

1996,  a  sufficient  number  of  which  have  been  reserved  to  retire  these  bonds  at  maturity. 

Trustee:  Metropolitan  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  4.00  basis 


1903 

4.08  to  4.15 

1904 

4.15 

1905 

3.95   4.00 

1906 

3.95   4.15 

1907 

4.18 

1908 

4.15   4.55 

1909 

4.35 

1910 

4.12   4.16 

1911 

4.35  (bid) 

1912 

4.20   4.35 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


TAYLOR'S  FALLS   &  LAKE   SUPERIOR  RAILROAD 

First  Mortgage  Currency  6s 

Dated  January  1,  1884  Maturing  January  1,  1914 

Interest  payable  January  1  and  July  1  at  J.  P.  Morgan  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $210,000  Outstanding  $210,000 

Per  mile  .    .       10,200 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Wyoming  to 

Taylor's  Falls,  Minn.,  20.52  miles,  together  with  the  equipment  of  the  line. 

These  bonds  have  been  ASSUMED  by  the  Northern  Pacific  Railway  Company. 

Trustee:  Central  Trust  Company,  New  York. 

The  Taylor's  Falls  &  Lake  Superior  Railroad  Company  was  chartered  in  February,  1875,  with 
the  power  to  construct  a  line  from  a  point  on  the  line  of  the  Lake  Superior  &  Mississippi  Railroad  to 
the  St.  Croix  River  at  Taylor's  Falls.  The  road  was  completed  and  opened  for  traffic  November 
8,  1880,  having  cost  $303,000,  advanced  jointly  by  the  Duluth  and  Minneapolis  Companies,  each  of 
which  was  to  receive,  as  representing  such  half-interest,  one-half  of  an  issue  of  bonds  made  by  the 
Minneapolis  &  St.  Louis  Railroad  and  secured  on  the  above  road,  together  with  half  the  stock  of 
the  Taylor's  Falls  &  Lake  Superior  Railroad  Company. 

[  582  ] 


On  October  12,  1880,  the  line  was  leased  to  tlie  Minneapolis  Company  at  30%  of  its  gross 
earnings.  In  November,  1898,  the  property  of  the  Taylor's  Falls  Road  was  conveyed  to  the  St. 
Paul  &  Duluth  Railroad  Company,  whose  property  in  turn  was  pm-chased  by  the  Northern  Pacific 
Railway  Company  in  1900. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


DULUTH   SHORT  LINE  RAILWAY 
First  Mortgage  Currency  5s 

Dated  September  1,  1886  Maturing  September  1,  1916 

Interest  payable  March  1  and  September  1  at  J.  P.  Morgan  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $500,000  Outstanding  $500,000 

Per  mile  .    .       27,800 

Security :  These  bonds  are  secured  by  a  first  mortgage  on  17.75  miles  of  the  company's  line,  including 

the  14.33  miles  from  Thomson  to  Duluth,  a  branch  to  West  Superior,  Wis.,  and  a  bridge  over 
the  St.  Louis  River. 

The  above  bonds  have  been  ASSUMED  by  the  Northern  Pacific  Railway  Company. 

Equity:  These  bonds  are  prior  in  Hen  to  the  St.  Paul  &  Duluth  Second  5s  of  1917;  to  the  First  Con- 

soUdated  4s  of  1968;  and  to  the  Northern  Pacific  St.  Paul-Duluth  Division  4s  of  1996,  a  suf- 
ficient number  of  which  have  been  reserved  to  provide  for  the  retirement  of  the  above  bonds. 

Trustee:  Central  Trust  Company,  New  York. 

The  Duluth  Short  Line  Railway  Company  was  chartered  July  1,  1886,  and  its  road  was  opened 
for  traffic  in  September,  1888.  It  was  leased  from  September  1,  1886,  to  the  St.  Paul  &  Duluth 
Railroad  Company  at  an  annual  rental,  being  the  interest  on  its  bonds.  Its  property  was  purchased 
by  the  St.  Paul  &  Duluth  Railroad  Company  in  November,  1898,  the  latter  company  being  merged 
with  the  Northern  Pacific  Railway  Company  in  1900. 

These  bonds  were  quoted  in  1909  on  a  5.00  basis  (bid) 
These  bonds  were  sold  in  1910  5.20 

1911  5.22  (bid) 

1912  4.60  to  5.00 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  aud  Rhode 
Island. 


[  583  ] 


WASHINGTON    &   COLUMBIA   RIVER   RAILROAD 
First  Mortgage  4s 

Dated  March  1,  1895  Maturing  July  1,  1935 

Interest  payable  January  1  and  July  1  at  34  Nassau  St.,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $2,620,000  Outstanding  $140,000 

Per  mile  .    .  800 

Provisions  of      Of  the  total  amount  authorized  $140,000  are  outstanding  as  above,  and  the  balance,  $2,480,000, 
issue:  is  in  the  treasury  of  the  company. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  167.65  miles  of  road,  including  the  com- 

pany's line  from  Pendleton,  Ore.,  to  Dayton,  Wash.,  127  miles,  and  branches,  together  with 
the  equipment  of  the  road  and  all  further  acquisitions. 

These  bonds  have  been  ASSUMED  by  the  Northern  Pacific  Railway  Company. 

Trustee:  Farmers'  Loan  &  Trust  Company,  New  York. 

The  Washington  &  Columbia  River  Railway  Company  was  chartered  August  4,  1892,  as  the 
successor  to  the  Oregon  &  Washington  Territory  Railroad  Company.  On  February  1,  1898,  it 
passed  under  the  control  of  the  Northern  Pacific  Railway  Company  through  the  purchase  oi  prac- 
tically all  its  stock  and  income  bonds.  It  was  not  until  July,  1907,  however,  that  it  became  operative 
as  an  integral  part  of  the  Northern  Pacific  Railway  System. 

These  bonds  were  quoted  in  1909  on  a  4.88  basis  (bid) 

1910  4.90 

1911  5.00 
July,  1912  5.05 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Vermont, 
Massachusetts  and  Rhode  Island. 


WASHINGTON   CENTRAL   RAILWAY 

First  Mortgage  4s 

Dated  June  1,  1898  Maturing  March  1,  1948 

Interest  payable  March  1,  June  1,  September  1  and  December  1  at  the  Manhattan  Trust 

Company,  New  York. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $100  and  multiples. 

Authorized  $1,853,000  and  $15,000  per  mile  additional  Outstanding  $850,500 

Per  mile  .    .         6.500 

Provisions  of      Of  the  amount  authorized,  $850,500  are  outstanding  as  above,  and  the  balance,  $1,002,500, 
issue:  is  held  in  the  treasury  of  the  Northern  Pacific  Railway  Company. 

[  584  ] 


Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Cheney  to 

Coulee  City,  Wash.,  129.88  miles,  together  with  equipment  and  future  acquisitions. 

These  bonds  have  been  GUARANTEED  as  to  INTEREST  by  the  Northern  Pacific  Railway 
Company  under  the  terms  of  its  lease. 

Trustee:  Knickerbocker  Trust  Company,  New  York. 

The  Washington  Central  Railway  Company  was  organized  March  31,  1898,  to  take  over  the 
property  of  the  Central  Washington  Railroad  Company,  which  was  sold  under  foreclosure  January 
19,  1898.  The  Washington  Central  Railway  Company  was  leased  for  999  years  from  March  1,  1898, 
to  the  Northern  Pacific  Railway  Company,  which  took  possession  of  the  property  June  30,  1898, 
at  a  rental  of  $61,520  a  year,  being  interest  on  its  bonds. 


These  bonds  sold  in  1902  on  a  4.28  basis 

1904 

4.33  to  4.85 

1905 

4.28       4.38 

1906 

4.37       4.45 

1909 

4.40 

1910 

4.42       4.45 

1911 

4.50 

December,  1912 

4.60  (bid) 

NORTHERN  PACIFIC  GREAT   NORTHERN 

Chicago,  Burlington  &  Quincy  Joint  Collateral  Trust  Gold  4s 

Dated  July  1,  1901  Maturing  July  1,  1921 

Interest  payable  January  1  and  July  1  for  coupon  bonds,  January  1,  April  1,  July  1  and 

October  1  for  registered  bonds,  at  New  York  and  Berlin. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $1,000,  $5,000  and  multiples. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $222,400,000  Outstanding  $215,227,000 

Provisions  of      The  authorized  amount  of  tliis  issue  is  limited  to  twice  the  par  value  of  the  capital  stock  of 

issue:  the  Chicago,  Burlington  &  Quincy  Railroad.     Of  this  amount,  $215,227,000,  are  outstanding 

as  above,  and  the  balance,  $7,173,000,  is  issuable  in  exchange  for  the  above-mentioned  stock. 

Security :  The  above  bonds  are  a  direct  obligation  of  the  Northern  Pacific  Railway  and  the  Great  North- 

ern Railway  Companies,  jointly  and  severally,  and  are  secured  by  a  deposit  with  the  trustee 
of  $107,613,500  capital  stock  of  the  Chicago,  Burlington  &  Quincy  Railroad. 

Redemption:  These  bonds  are  redeemable  at  105  and  interest  on  any  interest  date  after  January  1,  1906. 
A  suSicient  amount  of  Great  Northern  Railway  First  and  Refunding  Bonds  of  1961  has  been 
reserved  to  retire  this  issue  at  maturity. 

Trustee:  Standard  Trust  Company,  New  York. 

[  585  ] 


For  a  further  description  of  this  issue,  see  page  180. 

These  bonds  sold  in  1901  on  a  3.95  to  4.45  basis 


1902 

4.25 

4.60 

1903 

4.40 

5.10 

1904 

3.87 

4.80 

1905 

3.75 

4.10 

1906 

3.85 

4.25 

1907 

4.25 

5.80 

1908 

4.00 

4.80 

1909 

4.10 

4.50 

1910 

4.30 

4.62 

1911 

4.20 

4.60 

1912 

4.20 

4.75 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


PENNSYLVANIA    RAILROAD    COMPANY 


PENNSYLVANIA  RAILROAD  COMPANY 


HISTORY 

The  Pennsylvania  Railroad  claims  the  distinction  of  being  the  greatest  railroad  in  the  world 
in  point  of  earnings  and  traffic.  The  Pennsylvania  System,  including  the  mileage  operated  by  the 
Pennsylvania  Railroad  Company,  the  Pennsylvania  Company,  and  the  lines  they  control,  aggre- 
gated 11,406  miles  of  main  track  as  of  December  31,  1911,  including  67  miles  of  ferries  and  canals. 
During  1911  the  system's  gross  earnings  were  over  $336,000,000,  while  those  of  the  Pennsylvania 
Railroad  Company  were  over  $157,000,000,  and  the  total  number  of  tons  carried  by  the  system 
amounted  to  over  413,000,000,  or  nearly  one-quarter  of  the  tonnage  of  the  United  States. 

The  Pennsylvania  Railroad  Company  is  one  of  the  oldest  in  the  United  States,  its  annual  report 
of  December  31,  1911,  being  the  sixty-fifth  issued  by  it.  Incorporated  April  13,  1846,  under  the 
laws  of  the  State  of  Pennsylvania,  it  was  planned  to  construct  a  line  of  railroad  from  Harrisburg  to 
Pittsburg,  Pennsylvania,  a  distance  of  249  miles.  The  work  of  construction  was  begun  on  the 
Harrisburg  end  in  July,  1847,  and  various  divisions  were  ojjened  from  time  to  time  as  completed 
from  1850  to  1854,  when,  in  February  of  that  year,  the  completed  line  was  thrown  open  for  traffic. 

The  link  from  Harrisburg  to  Philadelphia  was  made  up  of  the  old  Philadelphia  &  Columbia 
Railroad  and  the  Harrisburg,  Portsmouth,  Mt.  Joy  &  Lancaster  Railroad.  The  former  was  pur- 
chased in  1857  together  with  the  main  line  of  a  system  of  public  works  of  the  state,  including 
canals  and  railroads  which  hatl  been  planned  as  early  as  1826  to  connect  the  Susquehanna  system 
of  canals  with  Philadelphia. 

In  order  to  keep  pace  with  the  rapid  extension  of  the  Pennsylvania  Railroad  System,  the  Penn- 
sylvania Company  was  chartered  in  1870  for  the  purpose  of  managing  the  interests  of  the  Pennsyl- 
vania Railroad  Company  in  its  various  lines  leased  and  controlled,  lying  west  of  Pittsburg.  The 
Pennsylvania  Railroad  owns  the  entire  $80,000,000  capital  stock  of  the  Pennsylvania  Company. 
The  latter  owns  no  mileage  directly,  but  operates  under  lease  the  following  roads: 

Pittsburgh,  Fort  Wayne  &  Chicago  Railway  and  leased  lines, 

Pittsburgh,  Youngstown  &  Ashtabula  Railway, 

Erie  &  Pittsburgh  Railroad, 

Cleveland  &  Pittsburgh  Railroad, 

Toledo,  Columbus  &  Ohio  River  Railroad, 

South  Chicago  &  Southern  Railway, 

Massillon  &  Cleveland  Railway, 

and  several  smaller  lines. 

It  controls  through  ownership  of  all  or  a  majority  of  their  capital  stocks  the  following  companies 
which  are  operated  through  their  own  organization: 


Pittsburgh,  Cincinnati,  Chicago  &  St.  Louis  Railway, 
Grand  Rapids  &  Indiana  Railway  and  affiliated  lines, 
Cleveland,  Akron  &  Cincinnati  Railway, 
[  589  ] 


Waynesburg  &  Washington  Railroad, 
Pennsylvania  Terminal  Railway, 
Cincinnati,  Lebanon  &  Northern  Railway, 
Vandalia  Railroad  Lines, 
Louisville  Bridge  Company, 
Wheeling  Terminal  Railway 

and  joint  interests  in 

Central  Indiana  Railway, 

Lake  Erie  &  Pittsburgh  Railway, 

Pittsburgh,  Chartier  &  Youghiogheny  Railroad, 

Toledo,  Peoria  &  Western  Railway. 

In  January,  1907,  the  "Pennsylvania"  completed  arrangements  for  the  merger  of  the  Phil- 
adelphia &  Erie  Railroad,  operating  307  miles  of  track  between  Sunbury  and  Erie,  Pennsylvania. 
The  merger  took  effect  as  of  May  1,  1907. 

In  carrying  out  the  policy  of  absorbing  minor  roads  where  such  acquisition  promotes  efficiency 
and  economy  of  operation,  the  Bald  Eagle  Valley  Railroad,  the  Junction  Railroad  and  the  South- 
west Connecting  Railway  Companies  were  absorbed  during  1908  and  their  properties  taken  over, 
the  Allegheny  Valley  Railway  was  merged  in  April,  1910,  and  the  Ridgeway  &  Clearfield  Railroad 
in  April,  1911.  The  Bedford  &  Bridgeport  Railway  and  the  Bedford  &  Hollidaysburg  Railroad 
consolidated  in  May,  1911,  as  the  Hollidaysburg,  Bedford  &  Cumberland  Railroad. 

In  August,  1910,  the  directors  of  the  Pennsylvania  Railroad  approved  a  proposition  to  lease 
the  Northern  Central  Railway  for  999  years  at  a  rental  of  a  stock  dividend  of  40%,  a  cash  dividend 
of  10%,  a  guaranteed  annual  dividend  of  8%  on  the  capital  as  increased  by  the  foregoing  allotment, 
with  but  a  small  dissenting  vote.  The  stockholders  of  the  Northern  Central  Railway  agreed  in 
November,  1910,  to  ratify  this  lease.  Delays  in  its  consummation  have  been  brought  about  by 
suits  of  the  dissenting  minority  stockholders,  which  are  at  present  pending  settlement. 

The  Peimsylvania  Tunnel  &  Terminal  Railroad  Company  was  chartered  to  construct  a  ter- 
minal and  approaches  in  New  York  City.  In  1903  work  was  begun  upon  this  expensive  engineering 
feat,  and  during  1910  the  New  York  Tunnel  Extension  was  practically  completed.  The  Pennsyl- 
vania Depot  and  tubes  coimecting  it  were  thrown  open  for  traffic  November  27,  1910,  and  from  that 
date  the  entire  tunnel  extension  from  that  point  to  a  connection  with  the  Long  Island  Railroad 
at  Suimyside  Yard  has  been  operated  by  the  Pennsylvania  as  agent  for  the  Pennsylvania  Tunnel 
&  Terminal  Railroad  Company. 

The  latter  company  issued  in  1911  its  certificate  of  indebtedness  to  the  Pennsylvania  Railroad 
Company  for  $84,861,420  in  settlement  for  funds  advanced  for  the  construction  of  the  Tunnel  and 
Terminal.  This  certificate  and  $15,000,000  of  its  full-paid  capital  stock  are  included  in  the  securi- 
ties owned  by  the  Pennsylvania,  and  are  carried  on  its  balance  sheet  at  valuations  respectively  of 
$57,461,419  and  $1.  The  balance  of  its  capital  stock,  $10,000,000,  is  owned  by  the  Pennsylvania 
Company. 

Jointly  with  The  New  York,  New  Haven  &  Hartford  Railroad  Company,  the  Permsylvania 
Railroad  Company  has  owned  for  many  years  the  entire  capital  stock  of  the  New  York  Connecting 
Railroad  Company,  which  is  now  constructing  a  railroad  from  a  connection  with  the  Long  Island 
Railroad  at  the  Borough  of  Queens,  New  York  City,  through  it  to  a  connection  with  The  New  York, 
New  Haven  &  Hartford  Railroad  near  Port  Morris  in  the  Borough  of  Bronx.  Upon  the  completion 
of  this  connection  a  direct  all-rail  movement  via  the  Pennsylvania  Station,  New  York  City,  for 
the  passenger  traffic  interchanged  between  the  two  systems  will  be  made  possible,  and  the  new  route 
should  materially  increase  facilities  for  and  expedite  the  movement  of  New  England  passenger 
and  freight  traffic  and  avoid  congestion  of  the  New  York  terminals  and  harbor,  and  delays  which 
often  arise  under  the  float  service  now  in  use  due  to  fog,  ice,  tides  and  crowded  conditions  of  the 
Hudson  and  East  Rivers. 

[  590  ] 


The  time  required  to  construct  this  important  Hnk  will  be  about  three  years.  It  has  been 
estimated  that  the  cost  thereof  will  be  about  $15,000,000  in  addition  to  $5,000,000  previously  ad- 
vanced in  equal  amounts  by  the  two  owning  companies,  and  represented  by  its  capital  stock  and 
notes.  All  securities  issuable  for  construction  purposes  will  bear  the  guarantee  both  as  to  principal 
and  interest  by  the  Pennsylvania  and  the  New  Haven,  and  under  the  agreement  they  will  operate 
the  line  jointly,  participating  equally  in  its  profits  and  meeting  equally  its  deficits. 

The  Pennsylvania  System  in  the  past  has  issued  large  amoimts  of  equipment  trust  certificates. 
The  total  amount  issued  under  all  series  up  to  December  31,  1911,  was  $105,300,000.  The  total 
amount  outstanding  and  unredeemed  on  the  above  date  was  $-11,600,000.  Against  this  amount 
86,528  cars  are  held  as  security.  The  Pennsylvania  Railroad  Company's  share  in  these  outstanding 
obligations  amounted  to  $26,757,828  in  December,  1911,  against  which  55,719  cars  are  held  as 
security. 

The  Pennsylvania  Railroad  Company,  in  addition  to  the  above-mentioned  interests,  controls 
through  direct  ownership  of  and  in  most  instances  a  large  majority  of  their  capital  stocks,  the  follow- 
ing railroads  which  are  operated  through  their  own  organizations: 

Philadelphia,  Baltimore  &  Washington  Railroad, 

West  Jersey  &  Seashore  Railroad, 

Northern  Central  Railway, 

Cumberland  Valley  Railroad, 

Long  Island  Railroad, 

Baltimore,  Chesapeake  &  Atlantic  Railway, 

Philadelphia  &  Camden  Ferry  Company. 

It  also  controls  the  Lykens  Valley  Coal  Comjiany,  the  Summit  Branch  Mining  Company,  the 
Lytle  Coal  Company,  the  Mineral  Railroad  &  Mining  Company  and  the  Susquehanna  Coal  Com- 
pany. Through  the  Pennsylvania  Company  it  has  acquired  control  jointly  with  the  Reading  Com- 
pany of  the  Cambria  Steel  Company  and  the  Pennsylvania  Steel  Company. 

Among  its  securities  owned  on  December  31,  1911,  the  Pennsylvania  Railroad  had  extensive 
holdings  in  the  properties  of  other  important  systems.  It  owned  $14,273,600  preferred  and  $5,725,000 
common  stocks  of  the  Baltimore  &  Ohio  Railroad  Company,  $4,062,500  capital  stock  of  The  New 
York,  New  Haven  &  Hartford  Railroad  Company  and  $32,484,800  common  and  $5,820,000  pre- 
ferred stocks  of  the  Norfolk  &  Western  Railway.  Its  holdings  of  the  stocks  of  these  companies  give 
it  a  voice  in  the  management  of  these  outside  properties. 


PROPERTY 

The  Pennsylvania  System  extends  from  the  city  of  New  York,  and  from  Philadelphia,  Balti- 
more and  Washington,  westerly  to  the  Great  Lakes  and  to  the  Mississippi  River,  with  lines  running 
southerly  to  Chesapeake  Bay,  to  the  Potomac  and  to  the  Ohio  Rivers,  and  easterly  to  the  end  of 
Long  Island.  The  lines  east  of  Pittsburg  and  Erie  are  managed  by  the  Pennsylvania  Railroad 
Company,  while  those  west  of  the  cities  named  are  managed  by  the  Pennsylvania  Company.  The 
entire  system  had  an  aggregate  mileage,  December  31,  1911,  of  11,406.87  miles. 

The  Pennsylvania  Railroad  Company  operated  for  the  fiscal  year  ending  December  31,  1911, 
4,017.79  miles  as  follows: 

Miles  owned  in  fee 2,127.61 

Miles  operated  under  contract 1,682.44 

Miles  operated  imder  trackage  arrangements 207.74 

Total  miles  operated 4,017.79 

[591  ] 


As  compared  with  1910,  the  Pennsylvania  operated  41.1  miles  more  in  1911.  This  was  due  to  the 
absorption  of  the  Ridgway  &  Clearfield  Railroad. 

The  mileage  of  the  Pennsylvania  Railroad  lies  chiefly  in  the  States  of  Pennsylvania  and  New 
Jersey.  The  population  of  the  two  in  1890  was  approximately  6,700,000,  in  1900  8,200,000,  and  in 
1910  was  10,200,000. 

CAPITALIZATION 

The  capitalization  of  the  Pennsylvania  Railroad  Company  on  December  31,  1911,  was  approxi- 
mately as  follows: 

Capital  stock $453,880,560 

Funded  debt 262,848,007 


Nominal  capital $716,728,567 

Rentals  capitalized  at  5% 98,384,080 

Gross  capitalization $815,112,647 

Securities  owned 320,599,735 


Net  capitalization $494,512,912 

Net  capital  per  mile  operated      $123,072 

Average  miles  operated 4,017.79 

Net  income  to  net  capital 12.9% 

Fixed  charges  to  net  income 37.9% 

Margin  of  safety 62.2% 

In  January,  1911,  the  directors  were  authorized  to  increase  the  company's  capital  stock  from 
$500,000,000  to  $600,000,000.  In  the  following  March  new  stock  was  issued,  amounting 
to  $41,261,600.  This  new  stock  was  offered  to  stockholders  of  record  at  par  up  to  10%  of  their 
respective  holdings.  On  January  1,  1912,  the  total  amount  of  capital  stock  outstanding  was 
$453,877,850. 

The  funded  debt  above  includes  $162,930,370  of  the  company's  direct  obligations,  $54,546,500 
of  the  secured  debts  of  other  companies  whose  properties  have  been  acquired  by  the  Pennsylvania 
subject  thereto,  $14,822,250  Guaranteed  Stock  Trust  Certificates,  and  $26,757,828  of  Equipment 
Trust  obligations  referred  to  above.  One-half  the  company's  direct  obligations  are  represented  by 
its  Convertible  33^^%  bonds  of  1915,  which  were  offered  to  stockholders  in  1905  at  par  and  which 
are  outstanding  to  the  extent  of  over  $86,800,000. 

The  Pennsylvania  operates  under  contract  1 ,682  miles.  For  the  use  of  this  mileage  the  com- 
pany paid  in  1911  fixed  rentals  of  $3,402,093  and  rentals  for  roads  operated  on  the  basis  of  net 
revenue  of  $1,517,111.  Capitalizing  these  amounts  at  5%,  we  get  a  figure  of  nearly  $100,000,000, 
representing  the  nominal  capitalization  of  the  roads  in  question. 

The  value  of  the  securities  which  the  company  owned  as  of  December  31,  1911,  amounted  to 
$433,214,164  par  value.  These  were  carried  on  the  company's  general  balance  sheet  at  $321,540,716. 
The  par  value  of  the  stocks  owned  was  $290,263,128,  and  included  its  holdings  of  Baltimore  &  Ohio 
stock.  New  York,  New  Haven  &  Hartford,  the  entire  $80,000,000  stock  of  the  Pennsylvania  Com- 
pany, the  $15,000,000  stock  of  the  Pennsylvania  Tunnel  &  Terminal  Railway  Company,  holdings 
of  Norfolk  &  Western  and  Northern  Central  Railway  Companies'  stock,  and  the  stocks  of  its  other 
subsidiary  companies.  The  par  value  of  bonds  owned  amounted  to  $142,951,030,  the  largest  single 
item  being  the  Pennsylvania  Tunnel  &  Terminal  Railway  Company's  Certificate  of  Indebtedness. 
$67,614,550  of  the  foregoing  securities  were  deposited  under  the  Consolidated  Mortgage  and  Col- 
lateral Trust  Loans. 

[  592  ] 


The  total  income  received  from  the  securities  owned  by  the  Pennsylvania  Railroad  Company 
during  the  year  1911  amounted  to  $14,450,594,  or  4.4%  on  the  cost  of  the  securities  as  per  balance 
sheet.    This  amount  is  equivalent  to  3.1%  on  the  company's  outstanding  capital  stock. 

It  will  be  noted  that  the  company's  net  capital  per  mile  of  road  operated  was  $123,072.  This 
compares  with  $159,345  for  the  Reading  and  $111,293  for  the  Baltimore  &  Ohio,  two  similar 
properties.  Upon  these  net  capitalizations  the  three  in  question  were  able  to  show  total  net  incomes 
of  12.9%,  13.8%  and  0.5%  respectively. 

During  1911  the  Pennsylvania's  fixed  charges,  including  interest  on  its  funded  debt,  both  direct 
and  assumed,  rentals,  taxes,  sinking  funds,  etc.,  were  $24,167,141.  This  was  equal  to  37.8%  of  the 
company's  total  net  income.  There  was  an  equity  in  earnings  over  charges  of  over  $37,300,000,  or 
62.2%.  In  other  words,  the  company's  corporate  income  could  decline  almost  two-thirds  before  its 
fixed  charges  would  be  affected.  This  margin  of  safety  —  so  called  —  compares  with  52%  for  the 
Reading  and  43%  for  the  Baltimore  &  Ohio.  The  general  average  of  the  country  is  about  40% 
to  45%. 

CHARACTER   OF  TRAFFIC 

Nearly  three-quarters  of  the  Pennsylvania's  business  is  freight,  and  two-thirds  of  this  freight 
business  is  represented  by  the  transportation  of  mine  products.  Of  the  total  tons  of  revenue  freight 
125,175,068,  moved  in  1911,  66,274,246  tons  were  of  coal  and  coke. 

The  following  is  a  classification  of  the  company's  freight  tonnage  for  the  past  five  years : 

Products  of  1911         1910  1909         1908  1907 

Agriculture      4.36%  4.16%  4.75%  5.94%  5.18% 

Anmials 1.12  1.22  1.56  1.77  1.43 

Mines 63.07  65.89  66.02  65.45  64.75 

Forests 3.91  4.57  4.82  4.77  4.56 

Manufactures 16.84  19.81  19.32  18.52  20.38 

Mdse.  and  Misc 10.69*  4.35  3.53  3.55  3.70 

100.00%         100.00%        100.00%        100.00%         100.00% 

Following  are  the  more  important  trafiic  statistics  of  the  Pennsylvania  Railroad  Company  for 
the  years  1907  to  1911  inclusive: 

Year  Freight  Train  Freight  Average  rate 

density  load  earnings  per  ton 

tons  per  mile 

1907 5,502,007  574  $123,826,165  $.0057 

1908 4,269,464  602  97,989,330  .0057 

1909  4,840,916  656  110,748,978  .0058 

1910 5,099,717  649  118,203,016  .0058 

1911  4,833,448  671  114,069,932  .0059 

It  will  be  seen  that  the  Pennsylvania's  freight  business  declined  22%  in  1908  from  the  high 
figures  of  1907.  For  almost  any  other  road  a  decline  of  22%  would  have  been  serious.  Train  load- 
ing showed  improvement,  however,  increasing  28,  or  5%.  In  1909  and  1910  substantial  increases  in 
tons  carried  were  reported,  and,  with  an  increase  in  the  average  rate,  earnings  were  proportionately 
better. 

In  1911,  however,  tonnage  figures  fell  off  slightly,  while  the  train  load,  showing  the  com- 
pany's operating  efficiency,  was  the  highest  ever  reported.    Earnings  declined  but  nominally. 

*  6.32%  switching  items  included  above. 

[  693  ] 


About  22%  of  the  company's  gross  earnings  were  from  the  transportation  of  passengers.  The 
number  of  passengers  carried  in  1911  decreased  from  the  high  figures  of  1910,  69,979,457,  to 
67,445,714.  The  company's  passenger  density  —  the  number  of  passengers  carried  one  mile  per 
mile  of  road — increased  slightly,  however,  and  passenger  earnings  were  the  highest  in  the  history 
of  the  company. 

Year  Passenger       Number  of  Passenger  Average  rate 

density  passengers  earnings  per  passenger 

per  train  per  mile 

1907  417,591  64  $31,353,614  $.0192 

1908  368,341  61  28,951,656  .0198 

1909  392,224  63  30,410,788  .0196 

1910  425,968  64  33,185,031  .0196 

1911  428,777  62  34,113,529  .0198 


EARNINGS 

The  Pennsylvania  Railroad  reports  the  following  gross  and  net  earnings,  figured  on  the 
miles  operated  for  the  years  1907  to  1911  inclusive: 

Year  Average  miles  Gross  Per  mile  Net  Per  mile  Operating 

operated  earnings  earnings  ratio 


1907 
1908 
1909 
1910 
1911 


3,902  $164,812,825  $42,238  $45,205,477  $11,587  72.6^ 

3,980  136,296,871  34,245  38,884,855  9,771  71.5 

3,947  153,564,527  38,906  46,428,396  11,764  69.7 

3,977  160,457,298  40,346  45,644,670  11,479  71.6 

4,018  157,487,412  39,195  44,259,020  11,017  71.9 


No  railroad  in  the  country  reports  such  a  volume  of  earnings,  either  gross  or  net.  In  1890  gross 
revenues  were  over  $66,000,000.  By  1901  gross  earnings  had  reached  the  $100,000,000,  and  to-day 
they  average  yearly  that  amount  higher  than  in  1890. 

In  1907  gross  revenues  were  the  Iiighest  the  Pennsylvania  ever  produced.  The  company's 
operating  ratios,  given  below,  for  the  past  five  years,  show  how  closely  net  earnings  parallel  gross. 
Declines  in  operating  expenses  have  kept  pace  with  falling  earnings,  and  as  the  latter  have  improved, 
especially  since  1909,  operating  costs  have  expanded. 

These  ratios  have  been  made  up  as  follows: 

Year 


1907 
1908 
1909 
1910 
1911 


to  gross 

31.6% 
29.6 

Conducting 

transportation 

to  gross 

41.0% 
41.9 

Total  oper- 
ating expenses 
to  gross 

72.6% 
71.5 

31.4 

38.3 

69.7 

32.1 

39.5 

71.6 

31.1 

40.8 

71.9 

The  Pennsylvania's  gross  earnings  per  mile  of  $39,195  in  1911  compare  with  $43,750  per  mile 
for  the  Reading  and  $19,879  for  the  Baltimore  &  Ohio  Railroads. 

Based  on  the  annual  report  of  the  Pennsylvania  Railroad  Company  the  following  table  has 
been  prepared  showing  the  conil)iiie(l  earnings  for  the  fiscal  years  1908  to  1911  inclusive,  ending 
December  31,  of  all  the  trans])()rtati()n  comimnies  which  are  operated,  controlled  by  or  affiliated 
in  interest  with  the  Pennsylvania  Kailioad  System.  These  include,  beside  the  Pennsylvania  Rail- 
road Comjjany  and  the  Pennsylvania  Company,  the  Pliiladeljihia,  Baltimore  &  Washington  Rail- 

[594  ] 


road,  the  Northern  Central  Railway,  the  West  Jersey  &  Sea  Shore  Raih-oad,  tlie  Cumberland  Valley 
Railroad,  the  Pittsbiirgh,  Cincinnati,  Chicago  &  St.  Louis  Railway,  the  Vandalia  Railroad,  and  the 
Grand  Rapids  and  Indiana  Railway  Companies.  The  equity  of  the  Pennsylvania  Railroad  in  the 
above-mentioned  companies  is  extremely  large,  and  in  almost  every  instance  is  by  no  means  repre- 
sented by  the  dividends  paid  by  those  companies. 

1911  1910  1909  1908 

Gross  earnings  .    .     $336,351,868       $346,215,498       $315,406,804       $276,780,314 
Operating  expenses     261,210,277         267,422,917         229,143,591         205,388,087 


Net  earnings.    .    .       $75,141,591         $78,792,581         $86,263,213         $71,392,227 
Other  income    .    .         34,985,094  34,124,065  30,500,494  29,111,852 


Total  net  income       $110,126,685       $112,916,646       $116,763,707       $100,504,079 
Total  deductions*        108,209,372         109,107,290         113,520,505  99,250,907 


Surplus  for  year    .         $1,917,312  $3,809,356  $3,243,202  $1,253,172 

MAINTENANCE 

During  the  past  five  years  the  Pennsylvania  Railroad  Company  has  spent  $240,000,000  out 
of  income  for  maintenance  of  way  and  equipment.  This  is  an  average  of  $48,000,000  a  year,  or 
$12,155  per  mile  of  road  operated.    Following  are  the  amounts  which  have  been  spent: 

Year  Maintenance  Total  Per 

Way  Equipment  maintenance  mile 

1907      $20,265,844  $31,721,614  $51,987,458  $13,322 

1908      15,177,314  25,113,4.55  40,290,769  10,122 

1909      19,104,548  29,111,443  48,215,991  12,225 

1910      20,342,489  31,117,989  51,460,478  12,939 

1911      18,353,290  30,579,966  48,933,256  12,177 

The  average  traffic  density  and  the  total  maintenance  per  mile  of  the  Pennsylvania  for  the  period 
in  question  compare  with  the  Reading  and  the  Baltimore  &  Ohio  as  follows: 

Five  years  Traffic  Maintenance 

density  per  mile 

Pennsylvania 5,316,000  $12,155 

Reading 4,692,000  11,545 

Baltimore  &  Ohio 2,766,500  5,820 


ADDITIONS   AND   BETTERMENTS 

Besides  the  above  enormous  amounts  spent  for  maintenance,  the  com])any  has  appropriated 
from  surplus  earnings  for  improvements,  additions,  etc.,  since  1901  the  following  sums: 

*  Includes  interest,  rentals,  dividends,  reserves,  deductions  for  betterments  and  all  extraordinary  expenditures. 


[    595    J 


Year  Amount  Year  Amount 

1901  $10,824,595  1907 $5,760,651 

1902 12,500,000  1908 4,538,981* 

1903  9,472,728  1909 11,581,810* 

1904 6,220,922  1910 19,604,597* 

1905  8,424,881  1911 6,265,887 

1906      11,201,475 

The  company's  balance  sheet  of  December  31,  1911,  sliows  $33,088,133  of  income  spent  on  addi- 
tions to  property  since  June  30,  1907. 

The  total  additions  to  property  during  the  fiscal  year  1911  amounted  to  $14,319,530.  Of  this 
sum  $6,265,887  were  charged  to  Income,  as  above,  $200,000  to  Reserve  for  Additions  and  Better- 
ments, $1,792,687  to  Equipment  Depreciation  Reserve  and  $5,560,956  to  Capital  Account  ($1,889,499 
to  Road  and  $3,671,457  to  Equipment).  The  New  York  Central  spent  almost  identically  the  same 
amount  for  additions  and  betterments  during  1911  as  did  the  Pennsylvania. 

DIVIDENDS 

From  the  date  of  its  organization  up  to  December  31,  1911,  the  Pennsylvania  Railroad  Com- 
pany has  paid  cash  dividends  aggregating  over  365%,  or  about  $420,000,000.  It  has  paid  dividends 
longer  than  any  other  railroad  m  the  United  States,  and  has  never  failed  to  declare  a  dividend  in 
any  single  year.  Yearly  dividend  disbursements  average  over  $25,000,000.  The  company's  record 
since  1875  is  as  follows: 


Year 

Rate 

Year 

Rate 

1875-6    .    .    . 

.    .    .    .    8% 

1889         .    .    . 

•    .    .     5K% 

1877        .    .    . 

.     .     .     .     5V2 

1890         .    .    . 

.    .    .     5 

1878        .    .    . 

.    .    .    .    2 

1891          .    .    . 

.    .    .     3 

1879        .    .    . 

.    ...    43^ 

1892         .    .    . 

...     01^ 

1880        .    .    . 

.    .    .    .    6  and  1%  in  scrip 

1893-9      .    .    . 

...     5 

1881        .    .    . 

.    .    .    .    8 

1900-5      .    .    . 

.    .    .     6 

1882        .    .    . 

.    ...    61^ 

1906         .    .    . 

...     63^ 

1883        .    . 

.    ...    41^ 

1907          .    .    . 

.    .    .     7 

1884-8    .    .    . 

.        .    .    5 

1908-12   .    .    . 

.    .    .      6 

The  company  reported  a  Free  Surplus  of  $27,397,808  on  December  31,  1911,  which,  together 
with  Appropriated  Surpluses  of  $74,573,498,  is  equal  to  nearly  $102,000,000,  or  22%  of  the  com- 
pany's $453,877,500  capital  stock. 

STATISTICS 

Following  are  the  capitalization,  earnings  and  traffic  statistics  of  the  Pennsylvania  Railroad, 
based  on  the  average  miles  operated  for  the  year  1900,  and  for  the  years  1905  to  1911  inclusive: 

*  The  appropriations  of  1908,  1909  and  1910  include  $1,000,000,  $4,000,000  and  $12,400,000  respectively,  applied  toward  the  con- 
struction of  the  New  York  Tunnel  Extension. 


[  596  ] 


PENNSYLVANIA  RAILROAD 


Fiscal 

Capital 

Funded 

Rentals 

Gross 

Owned  by 

Net 

Extra 

year 

stock 

debt 

at  5% 

capital 

company 

capital 

miles 
operated 

3,648 

mam 
track 

1900 

$il,530 

$29,957 

$67,020 

$138,507 

$45,220 

$92,287 

2,038 

1903 

78,808 

49,974 

61,596 

190,378 

61,631 

128,747 

3,839 

2,028 

1906 

78,509 

49,156 

58,718 

186,383 

53,955 

132,428 

3,897 

2,109 

1907 

80,623 

69,445 

46,776 

196,844 

60,349 

136,495 

3,902 

2,123 

1908 

79,046 

80,044 

32,348 

191,438 

62,208 

129,230 

3,980 

2,149 

1909 

103,48-t 

74,891 

38,798 

216,173 

68,493 

147,680 

3,947 

2,133 

1910 

103,749 

67,860 

28,424 

200,033 

70,264 

129,769 

3,977 

2,173 

1911 

112,961 

65,417 

24,484 

202,862 

79,790 

123,072 

4,018 

2,197 

Fiscal 

Gross 

Maintenance 

Transportation 

Net 

Other 

Total 

Fixed 

Surplus  avail- 

year 

operating 

and  general 

operating 

mcome 

net 

charges 

able  for 

revenue 

Way 
$3,095 

Equipment 
$3,699 

expense 

revenue 

$1,779 

income 

$3,498 

dividends 

1900 

$24,271 

$9,131 

$8,346 

$10,125 

$4,627 

1905 

34,884 

3,939 

6,346 

14,041 

10,558 

3,133 

13,693 

5,886 

7,807 

1906 

38,039 

4,377 

6,723 

13,022 

11,917 

3,280 

15,917 

6,075 

9,122 

1907 

42,238 

5,193 

8,129 

17,329 

11,587 

3,535 

15,122 

6,549 

8,573 

1908 

34,243 

3,813 

6,309 

14,352 

9,771 

3,615 

13,386 

6,332 

7,054 

1909 

38,906 

4,830 

7,375 

14,927 

11,764 

4,041 

15,805 

6,931 

8,874 

1910 

40,346 

5,115 

7,824 

15,929 

11,479 

4,389 

15,868 

6,368 

9,500 

1911 

39,193 

4,567 

7,610 

16,001 

11,017 

4,887 

15,904 

6,014 

9,890 

Fiscal 

Divi- 

' Other 

Surplus 

Operating 

Total 

Conducting 

Fixed 

Gross 

Net 

Per  cent 

year 

dends 

charges 

expenses 

mainte- 

transpor- 

charges 

earmngs 

mcome 

earned  or 

to  gross 

nance  to 

tation  to 

to  gross 

to  gross 

to  net 

capital 

income 

eammgs 

gross 

gross 

eammgs 

capital 

capital 

stock 

$2,407 

$2,190 

$30 

65.5% 

eammgs 

eammgs 

37.5% 

22.6% 

10.8% 

1900 

28.0% 

17.6% 

11.1% 

1905 

4,718 

3,040 

49 

69.7 

29.5 

40.2 

16.8 

18.3 

10.6 

9.9 

1906 

5,098 

3,963 

61 

68.7 

29.2 

39.5 

16.0 

20.4 

11.5 

11.6 

1907 

5,614 

2,283 

666 

72.6 

31.6 

41.0 

15.5 

21.4 

11.1 

10.6 

1908 

4,742 

2,093 

217 

71.5 

29.6 

41.9 

18.5 

17.9 

10.3 

8.9 

1909 

4,857 

3,845 

172 

69.7 

31.4 

38.3 

17.8 

18.0 

10.7 

8.6 

1910 

6,138 

2,671 

691 

71.6 

32.1 

39.5 

15.8 

20.1 

12.2 

9.1 

1911 

6,458 

2,325 

1,107 

71.9 

31.1 

40.8 

13.3 

19.3 

12.9 

8.7 

1905 
1906 
1907 
1908 
1909 
1910 
1911 


Way      Equipment 


Conducting      Train  Rate  per  i 

transportation     mile 
per  revenue    earnings        Per 
train  mile         (net)       passenger 


.435 
.444 
.506 
.479 
.542 
.540 


Freight         Train      Freight     Passenger, 
density  load         to  all         freight 

revenue     traffic  and 

tons  company 

cars 


.719 

.787 
.721 
.743 
.866 
.792 
.779 


.0201 
.0201 
.0191 
.0197 
.0196 
.0195 
.0198 


$.0198   $.0054    3,268,276    477 


.0059 
.0059 
.0057 
.0037 
.0038 
.0058 
.0058 


4,398,407 
4,742,081 
5,502,007 
4,269,464 
4,840,916 
3,099,717 
4,833.448 


505 
529 
374 
602 
636 
649 
671 


72% 
74 
74 
75 

72 
72 
73 


37,794 
63,492 
57,751 
38,357 
63,222 
69,068 
80,483 
83,488 


[  5D7 


BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Pennsylvania 

Railroad  System,  together  with  the  bases  on  which  they 

have  sold  during  the  decade  ending  December  31,  1912: 


PENNSYLVANIA    RAILROAD 

Consolidated  Mortgage  5s,  4s  and  sJ^^s 

(i)  Gold  5s 

Issued  September  1,  1879  Maturing  September  1,  1919 

Interest  payable  March  1  and  Sei)tember  1  on  coupon  l>onds;  March  1,  June  1,  September  1 

and  December  1  on  registered  bonds;  at  the  Company's  office,  Philadelphia. 

Coui)ou  bonds  of  $1,000.     Registered  bonds  of  $1,000. 

Issued  $5,000,000  Outstanding  $4,998,000 

Cancelled    .  2,000 

(2)    Gold  4S 

Issued  May  1,  1893  Maturing  May  1,  1943 

Interest  payable  May  1  and  November  1  at  the  Farmers"  Loan  &  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Issued  $3,000,000  Outstanding  $2,610,000 

Cancelled    .        390,000 

(3)  Sterling  3HS 

Issued  July  1,  1895  INIaturing  July  1,  1945 

Interest  payable  January  1  and  July  1  at  the  Joint  Stock  Bank,  Ltd.,  London. 

Coupon  bonds  of  £200,  registerable  as  to  jjrincipal  or  fully  registerable. 

Issued  $4,850,000  Outstanding  $4,560,940 

Cancelled    .        289,060 

(4)  Currency  4s 

Issued  May  1,  1908  Maturing  May  1,  1948 

Interest  payable  May  1  and  November  1  at  New  York  or  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Issued  $20,000,000  Outstanding  $20,000,000 

(5)  Sterling  4s 

Issued  May  1,  1908  Maturing  May  1,  1948 

Interest  payable  May  1  and  November  1  at  London. 

Coupon  bonds  of  £200,  registerable  as  to  principal  or  fully  registerable. 
Issued  $19,400,000  Outstanding  $19,400,000 

Provisions  of      The  mortgage  covering  the  above  bonds  (dated  July  1,  1873)  authorized  an  issue  of  not  ex- 
issue:  ceeding  $100,000,000  outstanding  at  any  one  time.  Of  this  amount  $51,568,940  were  outstand- 
ing January  1,  1913. 

Sinking  fund:     The  company  agrees  that  it  will  set  apart  from  the  preceding  year's  net  income  on  the  fifth 
year  after  the  date  of  bonds  entitled  to  the  security  of  a  sinking  fund,  and  annually  there- 
after, an  amount  equal  to  1%  of  the  principal  of  said  bonds  outstanding,  this  amount  to  be 
applied  to  the  purchase  at  not  exceeding  par  of  bonds  so  issued.    The  bonds  purchased  arc 
[  600  ] 


to  be  cancelled.  If  bonds  are  not  so  purchasable,  the  amount  shall  be  invested  in  other  law- 
ful securities  which  shall  be  applied  to  the  sinking  fund.  On  December  31,  1912,  the  total 
amount  of  securities  and  cash  held  amounted  to  $2,882,031. 

Security:  The  above  bonds  are  secured  by  direct  mortgage  on  2,115.82  miles  of  road,  on  terminals  in 

Philadelphia  and  Pittsburg,  and  on  real  estate,  securities,  equipment,  leaseholds,  etc.  They 
are  secured  by  a  first  mortgage  on  1,093.01  miles,  including  the  line  from  Trenton,  N.  J.,  to 
York,  Pa.,  and  from  Philadelphia  to  Shenandoah;  also  from  Harrisburg  to  Pittsburg  and 
Altoona  to  Lock  Haven.  They  are  secured  by  a  second  mortgage  on  979.59  miles,  including 
the  98.0G  miles  cox  crcd  by  the  Pittsburg,  \'irginia  &  Charleston  First  4s  of  1943;  the  136.59 
miles  covered  by  tlic  Western  Pennsylvania  Con-soiidated  4s  of  1928;  on  the  287.54  miles 
covered  by  the  Pliila<lcl])hia  &  Erie  General  (is,  5s  and  4s  of  1920;  and  on  the  263.70  miles 
covered  by  the  Allegheny  \'alley  4s  of  1942.  They  are  secured  by  a  third  mortgage  on  the 
43.22  miles  covered  by  the  Suubury,  Hazleton  &  Wilkes-Barre  First  5s  of  1928.  They  are 
also  secured  by  first  mortgage  on  the  lease  of  a  major  part  of  the  property  of  the  United 
New  Jersey  Railroad  &  Canal  Company  and  on  the  lease  of  the  Harrisburg,  Portsmouth, 
Mount  Joy  &  Lancaster  Railroad  Company;  also  on  securities  pledged  with  the  trustee  of 
over  $50,000,000  estimated  value. 


Trustee: 


Girard  Trust  Company,  Philadelphia. 

The  5s  of  1919  sold  in  1903  on  a  3.80  basis 


1904 

3.95 

1907 

4.45 

1908 

3.85 

1909 

3.85 

1910 

4.00  to  4.02 

1911 

3.80 

1912 

3.37   3.70 

The  4s  of  1943  sold  in  1907  on  a  3.95  basis 

1908  3.70  to  3.98 

1909  3.72 

1910  3.67   3.875 

1911  3.80   3.875 

1912  3.80   3.95 

The  Sterling  4s  of  1948  sold  in  1909  on  a  3.73  to  3.85  basis 

1910  3.75   3.90 

1911  3.80   3.90 

1912  3.80   3.95 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  601  J 


PITTSBURGH,  VIRGINIA   &   CHARLESTON   RAILWAY 

First  Mortgage  4s 

Dated  February  1,  1904  Maturing  November  1,  1943 

Interest  payable  May  1  and  November  1  at  New  York  and  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $6,000,000  Outstanding  $6,000,000 

Per  mile  .    .  61,200 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  98.06  miles  of  the  company's  line,  in- 

cluding the  53.20  miles  from  Pittsburg  to  West  Brownsville,  Pa.,  and  branches;  also  on  depots 
and  other  buildings,  equipment  franchises,  incomes,  etc. 

These  bonds  have  been  ASSUMED  by  the  Pennsylvania  Railroad  Company. 

Equity:  The  bonds  are  prior  in  lien  to  the  Pennsylvania  Railroad  Consolidated  5s,  4s  and  Sj^s  of 

1919-1948. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

The  Pittsburgh,  Virginia  &  Charleston  Railway  Company  was  chartered  February  4,  1870, 
and  its  road  was  opened  for  traffic  in  1873.  It  was  consolidated  with  the  Brownsville  Railroad  Com- 
pany in  1881,  and  in  1894  it  absorbed  the  properties  of  the  McKeesport  &  Bessemer  Railroad,  the 
Monongahela  River  &  Streets'  Run  Railroad  and  the  Brownsville  &  State  Line  Railroad. 

The  company  was  operated  by  the  Pennsylvania  Railroad  Company  imder  a  lease  for  30  years 
from  April  1,  1895.    It  was  consolidated  with  the  latter  in  1905. 

These  bonds  were  quoted  in  1911  at  par. 
1912  at  par. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Vermont. 


SUNBURY,   HAZLETON   &  WILKES-BARRE   RAILWAY 
First  Mortgage  5s 

Dated  May  1,  1878  Maturing  May  1,  1928 

Interest  payable  May  1  and  November  1  at  the  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $100,  $500  and  $1,000. 

Authorized  Series  "A"  $1,000,000                                                                           Outstanding  Series  "  A  "  $574,200 
Series  "B"    1,000,000  Per  mile 13,300 

Provisions  of      Of  the  $1,000,000  Series  "A"  bonds  authorized,  $574,200  are  outstanding  as  above,  and 
issue:  $425,800  arc  held  in  the  sinking  fund.    The  company  has  the  privilege  of  increasing  from 

5%  to  6%  the  interest  on  the  $1,000,000  bonds  of  Series  "  B  "  when  issued. 
[  602  ] 


Sinking  fund:  A  sinking  fund  equivalent  to  one-rialf  of  1%  of  the  outstanding  bonds,  together  with  the 
interest  on  the  bonds  in  the  sinking  fund,  shall  be  applied  to  the  purchase  of  these  bonds  at 
not  exceeding  par  and  interest,  and  if  not  so  purchasable,  the  bonds  shall  be  drawn  by  lot. 
The  bonds  so  purchased  will  remain  uncancelled. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  43.22  miles  of  the  com])any's  line  ex- 

tending from  Sunbury  to  Tomhicken,  Pa.,  also  on  buildings,  equipment,  coal  lands  and  future 
acquisitions. 

The  bonds  have  been  ASSUMED  by  the  Pennsylvania  Railroad  Company. 

Equity:  These  bonds  are  prior  in  lien  to  the  Sunbury,  Hazleton  &  Wilkes-Barre  Railway  Second  6s 

of  1923,  and  to  the  Pennsylvania  Railroad  Consolidated  5s,  4s  and  Sj^s  of  1919-1948. 

Trustee:  Fidelity  Trust  Company,  Philadelphia. 

The  Sunbury,  Hazleton  &  Wilkes-Barre  Railway  Company  was  incorporated  May  1,  1878,  as  a 
reorganization  of  the  Danville,  Hazleton  &  Wilkes-Barre  Railway  Company,  which  had  been  sold 
under  foreclosure  March  20,  1878.  From  May  1,  1878,  it  was  leased  to  the  Pennsylvania  Railroad 
Company  for  50  years.  In  1900  the  company  was  consolidated  with  the  Schuylkill  &  Juanita  Rail- 
road Company  and  the  two  were  merged  in  1902  into  the  Pennsylvania  Railroad  Company  System. 


These  bonds  sold  in  1906  on 

a  4.75  to  4.88 

1907 

4.75       5.25 

1908 

4.80       5.00 

1909 

5.00  (bid) 

1910 

5.00 

1911 

5.00  (bid) 

December,  1912 

4.50  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Vermont. 


SUNBURY,  HAZLETON   &  WILKES-BARRE   RAILWAY 
Second  Mortgage  6s 

Dated  May  1,  1878  Maturing  May  1,  1938 

Interest  payable  May  1  and  November  1  at  the  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $100,  $500  and  $1,000,  fully  registerable. 

Authorized  $1,350,000  Outstanding  $1,349,500 

Per  mile  .    .  31,400 

The  Pennsylvania  Railroad  Company  owns  $498,000  of  the  $1,349,500  bonds  outstanding. 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  same  property  covered  by  the 

first  mortgage  of  the  Sunbury,  Hazleton  &  Wilkes-Barre  First  5s  of  1928  (see  above). 

The  bonds  have  been  ASSUMP2D  by  the  Pennsylvania  Railroad  Company. 
I  G03  ] 


Equity:  These  bonds  are  prior  in  lien  to  the  Pennsylvania  Railroad  Consolidated  5s,  4s  and  SJ^^s  of 

1919-1948. 

For  history  of  the  Sunbiiry,  Hazleton  &  Wilkes-Barre  Railway  Company,  see  page  G03. 

These  bonds  sold  in  1906  on  a  4.35  to  4.50  basis 

1907  4.40       4.55 

1908  4.40       4.90 

1909  4.45  (bid) 

1910  4.55       4.70 

1911  4.55  (bid) 
December,  1912  4.75  (bid) 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode 
Island. 


SUNBURY   &  LEWISTOWN    RAILWAY 
First  Mortgage  4s 

Dated  July  1,  1896  Maturing  July  1,  1936 

Interest  payable  January  1  and  July  1  at  the  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $600,000  Outstanding  $500,000 

Per  mile   .    .        9,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Selinsgrove 

Junction  to  Milroy,  Pa.,  55.75  miles;    also  on  lands,  buildings,  equipment,  franchises  ami 
incomes. 

These  bonds  have  been  ASSUMED  by  the  Penn.sylvania  Railroad  Company. 

Equity:  The  bonds  are  prior  in  lien  to  the  Penn.sylvania  Railroad  Consolidated  5s,  4s,  and  3j^s  of 

1919-1948. 

Trustee:  Guaranty  Trust  &  Safe  Deposit  Company,  Philadelphia. 

The  Sunbury  &  Lewi.stown  Railway  Company  wa.s  incorporated  October  1,  1896,  as  a  con- 
solidation of  the  Simbury  &  Lewistown  Railway  and  the  Mifflin  &  Center  County  Railroad  Com- 
panies. Tlie  property  of  the  company  was  leased  to  the  Pennsylvania  Railroad  Company  for  79 
years  from  October  1,  1896,  at  a  rental  equal  to  operating  expenses  and  one-half  interest  in  net 
earnings  from  operation  after  the  payment  of  interest  on  outstanding  bonds.  The  company  was 
consolidated  into  the  Schuylkill  &  Jiianita  Railroad  Company  in  1900,  and  the  latter  was  merged 
into  the  Pennsylvania  Railroad  Company  System  in  1902. 

'i'hese  bonds  sold  in  1909  on  a  4.00  to  4.45  basis 

1910  4.30  (bid) 

1911  4.20  (bid) 
December,  1912  4.25  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Vermont. 

[  604  ] 


WEST   CHESTER  RAILROAD 
First  Mortgage  5s 

Dated  September  1,  1879  Maturing  September  1,  1919 

Interest  payable  March  1  and  September  1  at  the  Broad  Street  Station,  Philadelpliia. 

Registered  bonds  of  $100,  $500  and  $1,000. 
Authorized  $75,000  Outstanding  $75,000 

Per  mile  .    .     15,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Morstein  to 

West  Chester,  Pa.,  5.22  miles;  also  on  lands,  buildings,  equipment,  franchises  and  incomes. 

The  bonds  have  been  ASSUMED  by  the  Pennsylvania  Railroad  Company. 

Sinking  fund:  "The  company  agrees  that  it  will  on  August  1,  1880,  and  semi-annually  thereafter,  when- 
ever any  of  the  bonds  can  be  purchased  at  or  under  their  par  value,  ap[)ropriate  and  apply 
out  of  the  net  earnings  of  the  six  months,  when  sufficient  therefor,  a  sum  equal  to  one-half  of 
one  i)er  cent  upon  all  the  bonds  that  luay  liave  been  issued  under  this  mortgage,  to  the  pur- 
chase of  such  bonds,  and  when  so  purchased,  cancel  the  same;  and  also  agrees  that,  in  addi- 
tion to  said  sum,  there  shall  be  set  apart,  for  like  i)urpose  of  purchasing  said  bonds,  a  sum 
equal  to  the  interest  of  the  bonds  so  i)urchased  and  cancelled." 

Equity:  The  bonds  are  prior  in  lien  to  the  Peuusylvania  Railroad  Consolidated  5s,  4s  and  3J/^s  of 

1919-1948. 

The  West  Chester  Railroad  Company  was  incorporated  February  13,  1831,  and  its  road  was 
opened  for  traffic  September  13,  1832.  It  was  leased  to  the  Pennsylvania  Railroad  Company  for 
99  years  from  August  6,  1879,  and  was  merged  into  the  Pennsylvania  Railroad  Company  System 
in  1903. 

These  bonds  arc  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Vermont. 


WESTERN   PENNSYLVANIA  RAILROAD 
Consolidated  Mortgage  4s 

Dated  June  1,  1888  Maturing  June  1,  1928 

Interest  payable  June  1  and  December  1  at  the  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $5,000,000  Outstanding  $4,000,000 

Per  mile  .    .  29,200 

Security:  These  bonds  are  .secured  by  a  first  mortgage  on  136.59  miles  of  the  company's  line,  including 

the  road  from  Conpitt  Junction  to  Allegheny,  Pa.,  and  branches,  113.57  miles;   also  on  addi- 
tions, extensions,  branches,  lands,  buildings,  rolling  stock,  franchises,  incomes,  etc. 

The  bonds  have  been  ASSUMED  by  the  Pennsylvania  Railroad  Company. 
[  605  ] 


Equity:  The  bonds  are  prior  in  lieu  to  the  Pennsylvania  Railroad  Consolidated  5s,  4s  and  33^s  of 

1919-1948. 

Trustee :  Provident  Life  &  Trust  Company,  Philadelphia. 

The  Western  Pennsylvania  Railroad  Company  was  chartered  February  9,  1853,  as  the  North- 
western Pennsylvania  Railroad  Company.  It  was  sold  under  foreclosure  Jidy  5,  1859,  and  the  exist- 
ing company  was  organized  March  1,  1864.  The  property  of  the  company  was  leased  in  1897  for 
50  years  to  the  Pennsylvania  Railroad  Company.  It  was  merged  into  the  Pennsylvania  Railroad 
Company  System  in  1903. 

These  bonds  sold  in  1907  on  a  3.75  to  3.95  basis 

1908  3.80       3.95 

1909  4.00  (bid) 

1910  4.05 

1911  4.05  (bid) 
December,  1912  4.12 

These  bonds  are  consiiiered  a  legal  investment  for  savings  banks  in  New  England. 


JUNCTION   RAILWAY 
General  Mortgage  3J2S 

Dated  April  3,  1900  Maturing  April  1,  1930 

Interest  payable  April  1  and  October  1  at  the  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $725,000  Outstanding  $725,000 

Of  the  bonds  outstanding  $300,000  were  held  in  the  Employees  Saving  Fund  and  $161,000 
were  owned  by  the  Pennsylvania  Railroad  Company  on  December  31,  1911. 

Security:  The  bonds  are  secured  by  a  first  mortgage  on  3.31  miles  of  road  in  Philadelphia,  including 

the  track  from  Belmont  Junction  to  Junction  Tunnel,  and  from  Gray's  Ferry  to  the  north 
end  of  the  Market  Street  Tunnel;  also  on  lands,  buildings,  franchises  and  incomes. 

These  bonds  have  been  ASSUMED  by  the  Pennsylvania  Railroad  Company. 

Equity:  The  bonds  are  prior  in  lien  to  the  Pennsylvania  Railroad  Consolidated  5s,  4s  and  3l^s  of 

1919-1948. 

The  Junction  Railroad  Company  was  chartered  May  3,  1860,  and  its  road  was  opened  for  traffic 
July  1,  1866.  It  was  leased  to  the  Philadelphia,  Baltunore  &  Washington  Railroad  Company  for 
50  years  from  March  1,  1899,  the  lessee  guaranteeing  fixed  charges,  maintenance  charges  and  6% 
on  the  company's  outstanding  capital  stock.  The  property  of  tlie  company  was  merged  into  the 
Pennsylvania  Railroad  Company  System  in  April,  1908. 

'Hiese  bonds  arc  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Vermont. 

[  606  ] 


PHILADELPHIA    &   ERIE   RAILROAD 
General  Mortgage  4s,  5s  and  6s 

Dated  July  1,  1869  Maturing  July  1,  1920 

Interest  payable  on  Gs,  January  1  and  July  1  at  Broad  Street  Station,  Philadelphia,  and  in  London 

in  Sterling;  on  5s  and  4s,  April  1  and  October  1  at  Broad  Street  Station,  Philadelphia. 

Bonds  of  $1,000,  (is  in  coupon  form,  4s  and  5s  registered. 

Authorized  $20,000,000  Outstanding  (6s)  $8,680,000 

(5s)    5,263,000 

(4s)    5,880,000 

Per  mile  ....  69,000 

Of  the  $19,823,000  bonds  outstanding,  $300,000  4s  are  held  by  the  Savings  Fund;  $100,000 
6s  by  the  Insurance  Fund,  and  $3,193,000  6s  by  the  Pennsylvania  Railroad  Company,  on 
December  31,  1911. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  287.54  miles  of  the  company's  line,  ex- 

tending from  Suubur.y  to  P^rie,  Pa.,  also  on  lands,  buildings,  ec|uipment,  etc.,  but  not  on 
branches  hereafter  constructed. 

The  bonds  have  been  ASSUMED  by  the  Pennsylvania  Railroad  C'onijiany. 

Equity:  These  bonds  are  prior  in  lien  to  the  Pennsylvania  Railroad  Consolidated  5s,  4s  and  Sj^s  of 

1919-1948. 

Tlie  Philadelphia  &  Erie  Railroad  Company  was  chartered  April  3,  1837,  as  the  Sunbury  & 
Erie  Railroad  Company.  Its  construction  was  commenced  in  185^2  and  was  completed  in  October, 
1864.  The  property  of  the  company  was  leased  to  the  Pennsylvania  Railroad  Company  for  999 
years  from  January  1,  186^.  It  was  merged  into  the  Pennsylvania  Railroad  Company's  System  in 
May,  1907. 

The  General  4s  of  1020  were  ([noted  in  1909  on  a  4.00  basis  (bid) 
sold  in  1910  3.87  to  4.12 

quoted  in  1911  4.00  (bid) 

December,  1912  4.12  (bid) 

The  General  5s  of  1920  were  quoted  in  December.  1912,  on  a  4.40  basis  (bid) 

The  General  6s  of  1920  sold  in  1906  on  a  3.75  to  3.87  basis 

1907  3.85       4.05 

1908  3.85 

1909  4.15  (bid) 

1910  4.05 

1911  4.15   (bid) 
December,  1912  4.50  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


[  607] 


SOUTH   WEST   PENNSYLVANIA   RAILWAY 
First  Mortgage  Sinking  Fund  7s 

Dated  February  1,  1877  Maturing  February  1,  1917 

Interest  payable  February  1  and  August  1  at  tlie  Broad  Street  Station,  Philadelphia. 

Registered  bonds  of  $1,000. 

Authorized  $1,000,000  Outstanding  $862,000 

Per  mile  .    .         6,900 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Greensburg  to 

Fairchance,  Pa.,  and  branches,  124.83  miles;    also  on   incomes,  franchises,  lands,  buildings 
and  rolling  stock  now  owned  or  hereafter  acquired. 

These  bonds  have  been  ASSUMED  by  the  Pennsylvania  Railroad  Company. 

Sinking  fund :  The  company  agrees  to  purchase  and  cancel  semi-aimually  five  of  these  bonds,  and  to  ap- 
propriate a  sum  equivalent  to  their  interest,  whenever  such  bonds  are  purchasable  at  not 
exceeding  par  and  interest  and  when  the  net  earnings  are  sufficient  therefor. 

Equity:  These  bonds  are  prior  in  lien  to  the  Pennsylvania  Railroad  Consolidated  5s,  4s  and  SJ^^s  of 

1919-1948. 

The  South  West  Pennsylvania  Railroad  Company  was  organized  in  1871,  and  its  road  was 
thrown  open  to  traffic  ia  1873.  Its  property  was  leased  to  the  Pennsylvania  Railroad  Company 
in  April,  1873,  and  was  merged  into  the  Pennsylvania  Railroad  Company  System  in  April,  1906. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


ALLEGHENY  VALLEY  RAILWAY 
General  Mortgage  4s 

Dated  March  1,  1892  Maturing  March  1,  1942 

Interest  payable  March  1  and  September  1  at  the  American  Exchange  National  Bank, 

New  York,  and  at  the  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $20,000,000  Outstanding  $20,000,000 

Per  mile  .    .  75,750 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  263.70  miles  of  the  company's  road, 

including  the  line  from  Pittsburg  to  Oil  City,  Pa.,  131.98  miles  and  from  Red  Bank  Junction 
to  Driftwood,  Pa.,  109.96  miles;  also  on  branches,  additions,  lands,  buildings,  rolling  stock, 
franchises,  incomes,  etc. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Pennsylvania 
Railroad  Company  by  endorsement. 

[  608  ] 


Equity:  These  bonds  are  prior  in  lien  to  the  Pennsylvania  Railroad  Consolidated  5s,  4s  and  3J^s  of 

1919-1948. 

Trustee:  Fidelity  Title  &  Trust  Company,  Pittsburg. 

The  Allegheny  Valley  Railway  Company  was  incorporated  March  2,  1892,  as  a  reorganization 
of  the  Allegheny  Valley  Railroad  Company,  whose  property  was  sold  under  foreclosure  December 
15,  1891.  In  April,  1910,  the  Pennsylvania  Railway  Company  acquired  all  the  corporate  rights, 
franchises  and  property  of  the  Allegheny  Valley  Railroad  Company,  and  the  corporate  existence 
of  the  latter  was  terminated. 

These  bonds  sold  in  1902  on  a  3.57  to  3.65  basis 


1903 

3.67 

3.85 

1904 

3.85 

3.88 

1905 

3.77 

1906 
1907 

3.75 
4.05 

3.85 

1908 

4.00 

4.05 

1909 

3.85 

4.00 

1910 

3.85 

4.00 

1911 

3.98 

4.02 

1912 

4.00 

4.05 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Vermont. 


PHILADELPHIA,  WILMINGTON    &   BALTIMORE    RAILROAD 
Stock  Trust  4%  Certificates 

Dated  July  1,  1881  Maturing  July  1,  1921 

Interest  payable  January  1  and  July  1  at  the  office  of  the  Pennsylvania  Company  for 

Insurance  on  Lives  and  Granting  Annuities,  Philadelphia. 

Registered  certificates  of  $1,000. 
Authorized  $10,000,000  Outstanding  $7,.S44,000 

Security :  The  above  certificates  were  issued  by  the  trustee  and  are  secured  by  an  equal  amount  at  par 

of  the  company's  stock.  Dividends  from  such  stock  are  to  be  applied  to  the  payment  of 
interest  on  these  certificates,  also  taxes  and  expenses  of  the  trust,  and  for  the  sinking  fund. 

The  Pennsylvania  Railroad  Company  agrees,  providing  that  dividends  declared  on  the  stock 
held  are  inadequate  to  meet  the  above  charges,  to  make  up  such  deficit  as  appears  to  the  trus- 
tee for  the  benefit  of  the  certificate  holders. 

Sinking  fund:  $2,656,000  of  the  amount  authorized  have  been  redeemed  by  the  sinking  fund,  which  provides 
that  an  amount  equal  to  one-half  of  1%  of  the  outstanding  certificates  shall  be  applied  semi- 
annually to  the  purchase,  at  not  exceeding  par,  and  cancellation  of  such  certificates.  If  none 
are  so  purchasable,  the  money  reverts  to  the  Pennsylvania  Railroad  Company. 

Trustee:  Pennsylvania  Company  for  Insurance  on  Lives  and  Granting  Annuities,  Philadelphia. 

[  609  ] 


The  Philadelphia,  WilDiingtoii  &  Baltimore  Railroad  Company  was  chartered  February  5,  1838, 
as  a  consolidation  of  the  Philadelphia  &  Delaware  County  Railroad,  the  Wilmington  &  Susque- 
hanna Railroad,  the  Delaware  &  Maryland  Railroad  and  the  Baltimore  &  Port  Deposit  Railroad 
Companies.  Through  various  absorptions  the  company's  system  grew  to  nearly  700  miles,  when 
it  was  consolidated  in  November,  1902,  into  the  Philadelphia,  Baltimore  &  Washington  Railroad 
Company. 

These  bonds  sold  in  1909  on  a  3.98  basis 

1910  3.95  to  4.10 

1911  4.05  (bid) 
December,  1912    4.20  (bid) 


NEW   YORK,  PHILADELPHIA    &   NORFOLK   RAILROAD 
Stock  Trust  4%  Certificates 

Dated  June  30,  1908  Maturing  June  1,  1948 

Interest  payable  June  1  and  December  1  at  the  office  of  the  Fidelity  Trust  Company,  Philadelphia. 

.Coupon  certificates  of  $1,000,  registerable  as  to  principal. 
Authorized  $7,500,000  Outstanding  $7,478,250 

Security:  The  above  certificates  are  secured  by  deposit  of  $2,492,750  capital  stock  of  the  New  York, 

Philadelphia  &  Norfolk  Railroad  Company. 

The  Pennsylvania  Railroad  Company  agrees  to  provide  such  amounts  as  may  be  needed  to 
pay  the  principal  and  interest  on  these  certificates. 

Trustee:  Fidelity  Trust  Company,  Philadelphia . 

The  New  York,  Philadelphia  &  Norfolk  Railroad  Company  was  chartered  September  "11,  1881, 
as  the  successor  to  the  Penmsular  Railroad  Company  of  Virginia.  It  was  icoiganized  without 
foreclosure  or  change  of  name  in  January,  1899.  In  1908  the  Pennsylvania  Railrt)a(l  Company 
offered  the  stockholders  of  the  New  York,  Philadelphia  &  Norfolk  Railroail  Company  an  exchange 
of  $3,000  in  these  certificates  for  each  $1,000  par  value  of  their  stock. 

The.se  certificates  sold  in  1905  on  a  3.75  to  4.65  basis 

1906  2.95       3.20 

1907  2.80       2.90 

1908  2.50       3.30 

These  certificates  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


610  ] 


PENNSYLVANIA  RAILROAD 

Collateral  Trust  Sinking  Fund  41/^s 

Dated  June  1,  1883  Maturing  June  1, 1913 

Interest  payable  June  1  and  December  1  at  the  Provident  Life  &  Trust  Company,  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $10,000,000  Outstanding  $9,786,000 

Security:  The  above  bonds  were  originally  secured  by  a  first  mortgage  on  bonds  deposited  with  the 

trustee  of  a  total  par  value  of  $12,500,000,  the  appraised  value  being  the  same  as  the  par 
value.    The  company  has  the  right  to  substitute  other  securities  of  equal  value. 

Sinking  fund:  $"-214,000  of  the  amount  authorized  have  been  redeemed  by  the  sinking  fund,  which  provides 
that  an  amount  equal  to  one-half  of  1%  of  the  bonds  issued,  together  with  interest  at  4J^% 
on  bonds  theretofore  purchased,  shall  be  used  semi-annually  to  purchase  these  bonds  at  not 
exceeding  par.  If  bonds  are  not  so  obtainable,  the  fund  for  that  period,  or  the  amount  un- 
used, shall  be  paid  into  the  treasury  of  the  company. 

Trustee:  The  Provident  Life  &  Trust  Company,  Philadelphia. 

The  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


PENNSYLVANIA   RAILROAD 
Convertible  3}4s 

Dated  October  '■i.  190.5  Maturing  October  1,  1915 

Interest  payable  June  1  and  December  1  at  the  American  Exchange  National  Bank,  New  York, 

or  at  Philadelphia. 

Cou()on  l)oiids  of  $500  and  $1,000,  registerable  as  to  j)rincipal  or  fully  registerable. 
Registered  bonds  of  $]  .000  and  n)ultii)les. 

Authorized  $100,000,000  Outstanding  $86,8^27,000 

Security:  The  above  bonds,  although  not  secured  by  a  mortgage,  are  a  direct  obligation  of  the  company. 

Redemption:  The  bonds  are  redeemable  at  par  and  interest  at  the  option  of  the  comi)any,  on  any  interest 
date  on  90  days'  notice. 

Conversion :  The  bonds  may  be  converted  into  stock  at  150%,  or  $75  per  share,  at  the  option  of  the  holder, 
at  any  time,  unless  called  for  redemption,  in  which  event  the  holder  shall  have  the  right  to 
convert  bonds  into  stock,  up  to  30  days  prior  to  the  date  of  redemption.  On  December  31, 
1911,  $13,173,000  bonds  had  been  converted  into  stock. 

Trustee:  Girard  Trust  Comj)any,  Philadelphia. 

[  611  ] 


These  bonds  sold  in  1905  on  a  3.20  to  3.80  basis 
1906  3.38       4.60 

1907 


4.15 


1.00 


1908 

4.05 

5.55 

1909 

3.60 

4.50 

1910 

4.05 

4.70 

1911 

4.25 

4.63 

1912 

4.25 

4.75 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


PENNSYLVANIA  RAILROAD 

Real  Estate  Purchase  Money  4s 

Dated  May  1,  1893  Maturing  May  1,  1923 

Interest  payable  May  1  and  November  1  at  the  Farmers'  Loan  &  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  princii)al  or  fully  registerable. 
Authorized  $2,000,000  Outstanding  $2,000,000 


Security: 


The  above  bonds  are  secured  by  a  first  mortgage  on  all  the  property,  rights,  title  and  interest 
of  the  company,  now  owned  or  hereafter  acquired,  in  Piers  Nos.  3,  4  and  5  on  West  Street, 
New  York  City;  also  on  wharves,  franchises,  rents,  etc. 

Farmers'  Loan  &  Trust  Comjiany,  New  York. 

These  bonds  sold  in  1902  on  a  3.30  to  3.62  basis 


1903 

3.55 

4.00 

1904 

3.45 

3.67 

1905 

3.32 

3.55 

1906 

3.50 

3.67 

1907 

3.65 

3.90 

1908 

3.55 

3.85 

1909 

3.55 

3.72 

1910 

3.65 

3.80 

1911 

3.80 

3.95 

cember,  1912 

3.881 

(bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


[  612  ] 


HARRISBURG,  PORTSMOUTH,  MOUNT   JOY   &  LANCASTER  RAILROAD 

First  Mortgage  4s 

Dated  July  1,  1853  Maturing  July  1,  1913 

Interest  payable  January  1  and  July  1  at  the  Company's  office,  Philadelphia. 

Registered  bonds  of  $1,000. 

Authorized  $1,000,000  Outstanding  $700,000 

Per  mile  .    .       13,200 

Originally  these  bonds  were  to  matiure  July  1,  1883,  but  were  extended  to  July  1,  1913,  the 
interest  being  reduced  from  6%  to  4%. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Harrisburg  to 

Dillerville,  Pa.,  and  branch  from  Middletown  to  Columbia,  Pa.,  totalling  52.57  miles,  in- 
cluding all  lands,  depots,  buildings,  franchises,  income  and  profits. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Pennsyl- 
vania Railroad  Company  under  the  terms  of  its  lease. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

The  Harrisburg,  Portsmouth,  INIoiint  Joy  &  Lancaster  Railroad  Company  was  chartered 
June  9,  1832,  and  its  road  was  opened  for  traffic  in  the  fall  of  1838.  The  property  of  the  company 
was  leased  for  999  years  from  January  1,  1861,  to  the  Pennsylvania  Railroad  Company,  the  latter 
agreeing  to  pay  as  rental  all  expenses,  interest  on  outstanding  bonds  and  7%  on  the  capital  stock. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Vermont. 


CAMBRIA   &   CLEARFIELD   RAILROAD 
First  Mortgage  5s 

Dated  January  1,  1891  Maturing  January  1,  1941 

Interest  payable  January  1  and  July  1  at  Broad  Street  Station,  Philadelphia. 

Coujjon  bonds  of  $1,000,  registerable  as  to  j)rincipal. 

Authorized  $2,000,000  Outstanding  $1,279,000 

Per  mile  .    .  12,500 

Of  the  total  amount  of  bonds  outstanding  as  above,  $501,000  are  held  in  the  treasury  of  the 
Pennsylvania  Railroad  Company.    The  mortgage  has  been  closed. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  lines,  totalling  101.64 

miles,  including  the  line  from  Cresson  to  Hoover's  Mill  Junction,  Pa.,  and  a  branch  to  Cherry 
Tree.    They  are  further  secured  by  a  first  mortgage  on  all  lands,  buildings,  rolling  stock  and 
franchises  now  owned  or  hereafter  acquired,  and  all  incomes  of  the  company. 
[  613  ] 


These  bonds  have  been  ASSUMED  bj'  the  Cambria  &  Clearfield  Railway  Company. 

Equity:  The  above  bonds  are  prior  m  lien  to  the  Cambria  &  Clearfield  Railway  General  Mortgage 

4s  of  1955,  a  sufficient  amount  of  which  has  been  reserved  to  retire  this  issue  at  maturity. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

The  Cambria  &  Clearfield  Railroad  was  chartered  January  13,  1887,  and  its  line  was  opened 
for  traflBc  September  24,  1888.  From  the  date  of  its  opening  it  was  leased  to  the  Pennsylvania 
Railroad  Company. 

It  was  consolidated  with  several  other  companies  into  the  Cambria  &  Clearfield  Railway  Com- 
pan\'  in  1903.  The  latter  is  controlled  by  the  Pennsylvania  Railroad  Company  through  ownership 
of  practically  its  entire  capital  stock. 

These  bonds  sold  in  1904  on  a  4.75  to  4.80  basis 
1908  4.40       5.00 

1900  4.70  (bid) 

1910  4.55  (bid) 

1911  4.70  (bid) 
December,  1912  4.90  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


PENNSYLVANIA    &   NORTHWESTERN   RAILROAD 
General  Mortgage  5s 

Dated  January  6,  1890  Maturing  January  1,  1930 

Interest  ]>ayable  January  1  and  July  1  at  Broad  Street  Station,  Philadeljjhia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $2,500,000  Outstanding  $1,021,000 

Per  mile  .    .  13,250 

This  mortgage  has  been  closed. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  77.09  miles  of  railroad  belonging  to 

the  company.  It  is  secured  by  a  first  mortgage  on  15.55  miles  and  by  a  second  mortgage  on 
61.54  miles  of  road  covered  by  the  first  mortgages  of  the  Bell's  (iap  Railroad  Consolidated 
6s  of  1913  and  the  Clearfield  &  Jefferson  Railroad  First  6s  of  1927. 

These  bonds  have  been  ASSUMED  by  the  Cambria  &  ("Icarfield  Railway  Company. 

Ecjuity :  The  above  bonds  are  prior  in  lien  to  the  Cambria  &  Clearfield  Railway  General  Mortgage  4s 

of  1955,  a  sufficient  amount  of  which  has  been  reserved  to  retire  this  issue  at  maturity. 

'IVustec:  (iuarantee  'I'rust  &  Safe  Deposit  Company,  Philadelphia. 

The  Pennsylvania  &  Northwestern  Railroad  Company  was  organized  December  27,  1889,  as 
a  consolidation  of  the  Bell's  Gaj)  Railroad  and  the  Clearfield  &  Jefferson  Railway  Companies.  The 
control  of  the  company  was  acquired  by  the  Pennsylvania  Railroad  Company  on  February  20,  1902, 

[  614  ] 


and  together  with  several  other  companies,  it  was  consolidated  on  June  25,  1903,  into  the  Cambria  & 
Clearfield  Railway  Company,  which  is  controlled  by  the  Pennsylvania  Railroad  Companj'  through 
ownership  of  practically  its  entire  capital  stock. 


These  bonds  sold  in  1906  on  a  4.20  to  4.40  basis 
1907  4.30       4.45 

1909  4.40  (bid) 

1910  4.40  (bid) 

1911  4.40  (bid) 
December,  1912     4.50  (bid) 


BELL'S    GAP   RAILROAD 


Consolidated  Mortgage  Sinking  Fund  6s 

Dated  April  2,  1883  Maturing  April  1,  1913 

Interest  payable  April  1  and  October  1  at  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $500  and  $1,000,  registerabie  as  to  principal. 

Authorized  $200,000  Outstanding  $145,000 

Per  mile  .    .         6,000 
This  mortgage  has  Ijeen  closed. 

Securit\':  The  above  bonds  are  secured  by  a  first  mortgage  on  all  the  railroad  of  the  company  from 

Bellwood  to  Witmer  (Irvona),  Pa.,  24.12  miles,  including  all  extensions  thereof,  together  with 
lands,  buildings,  rolling  stock  and  incomes. 

These  bonds  have  been  ASSUMED  by  the  Cambria  &  Clearfield  Railway  Company. 

Siiiking  fund :     In  any  year  in  which  a  dividend  is  paid  on  the  capital  stock,  $5,000  is  to  be  applied  to  the  pur- 
chase of  these  bonds  at  not  exceeding  par,  or,  if  not  so  used,  to  be  invested  in  other  securities. 

Ki(iiitj':  The  above  bonds  are  prior  in  lien  to  the  Pennsylvania  &  Northwestern  General  5s  of  1930 

and  to  the  Cambria  &  Clearfield  Railway  General  4s  of  1955,  a  sufficient  amount  of  which 
has  been  reserveil  to  retire  this  issue  at  maturity. 

Trustee:  Guarantee  Tru.st  &  Safe  Depcsit  Company,  Philadelphia. 

The  Bell's  Gap  Railroad  Company  was  chartered  June  13,  1872.  Its  road  was  opened  complete 
in.  1882.  The  property  of  the  conipan.y  was  merged  with  that  of  the  Clearfield  &  Jefferson  Railway 
Company  December  27,  1889,  forming  the  Pennsylvania  &  Northwestern  Railroail  Company. 
The  latter,  with  several  other  companies,  was  consolidated  into  the  Cambria  &  Clearfield  Railway 
Comi)any  in  1903,  the  capital  stock  of  which  is  almost  entirely  owned  by  the  Pennsylvania  Rail- 
road Company. 

These  bonds  sold  in  1902  on  a  3.65  basis 
These  bonds  were  quoted  in  1909  4.88  basis  (bid) 

1910  4.90 

1911  4.90 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 

[  615  ] 


CLEARFIELD    &   JEFFERSON   RAILWAY 
First  Mortgage  6s 

Dated  July  8,  1886  Maturing  January  1,  1927 

Interest  payable  January  1  and  July  1  at  the  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal. 

Authorized  $1,000,000  Outstanding  $1,000,000 

Per  mile  .    .  27,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  entire  railroad  of  the  company,  ex- 

tending from  the  terminus  of  the  Bell's  Gap  Railroad  at  Ivrona  to  Horatio,  Pa.,  37.42  miles, 
together  with  all  lands,  buildings,  rolling  stock,  franchises  and  incomes. 

These  bonds  have  been  ASSUMED  by  the  Cambria  &  Clearfield  Railway  Company,  having 
previously  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Bell's  Gap 
Railroad  Company. 

Equity:  The  .above  bonds  are  prior  in  lien  to  the  Pennsylvania  &  Northwestern  General  5s  of  1930, 

and  to  the  Cambria  &  Clearfield  General  4s  of  1955,  a  sufiicient  amount  of  which  has  been 
reserved  to  retire  this  issue  at  maturity. 

Trustee:  Guarantee  Trust  &  Safe  Deposit  Company,  Philadelphia. 

The  Clearfield  &  Jefferson  Railway  Company  was  organized  in  February,  1885,  to  construct 
an  extension  from  Bell's  Gap  Railroad  to  a  connection  with  the  Buffalo,  Rochester  &  Pittsburgh 
Railroad  at  Punxsutawney,  a  distance  of  about  40  miles.  The  road  was  completed  16  miles  when  the 
stocks  and  bonds  outstanding  were  taken  over  by  the  Bell's  Gap  Railroad  Company's  stockliolders, 
who  paid  $500  cash  for  $500  of  each  issue.  The  property  of  the  company  was  merged  with  the  prop- 
erty of  the  Bell's  Gap  Railroad  Company  December  27,  1889,  forming  the  Pennsylvania  &  North- 
western Railroad  Company.  The  latter,  with  several  other  companies,  was  consolidated  into  the 
Cambria  &  Clearfield  Railway  in  1903,  the  capital  stock  of  which  is  almost  entirely  owned  by  the 
Pennsylvania  Railroad  Company. 

These  bonds  sold  in  1906  on  a  4.20  basis 


1908 

4.75 

1909 

4.60  (bid) 

1910 

4.55  (bid) 

1911 

4.55  (bid) 

December,  1912 

4.()0  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


L  010  1 


CAMBRIA   &   CLEARFIELD   RAILWAY 
General  Mortgage  Sinking  Fund  4s 

Dated  February  1,  1905  Maturing  February  1,  1955 

Interest  payable  February  1  and  August  1  at  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $1,000. 

Authorized  $7,500,000  Outstanding  $1,255,000 

Per  mile  .    .  3,150 

Provisions  of      Of  the  total  amount  authorized,  $1,255,000  are  outstanding  as  above.    $3,445,000  have  been 
issue:  reserved  to  retire  underlying  liens,  and  $2,800,000  have  been  reserved  for  general  corporate 

purposes. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  398.86  miles  of  road,  together  with 

branches  and  extensions,  buildings,  depots,  rolling  stock,  and  all  other  estate,  real  or  personal, 
belonging  to  the  company.  The  bonds  are  secured  by  a  first  mortgage  on  220.13  miles  in- 
cluding the  lines  from  Vail  to  Grampian,  from  Cresson  to  Ivrona,  and  from  Ebensburg  to 
Black  Lick;  by  a  second  mortgage  on  117.19  miles  covered  by  the  first  mortgages  of  the 
Cambria  &  Clearfield  Railroad  First  5s  of  1941,  and  the  Pennsylvania  &  Northwestern  Rail- 
road General  5s  of  1930;  and  by  a  third  mortgage  on  61.54  miles  covered  by  the  first  mortgages 
of  the  Bell's  Gap  Railroad  Consolidated  6s  of  1913  and  the  Clearfield  &  Jcfter.son  First  6s  of 
1927. 

Sinking  fund:  Commencing  February  1,  1906,  and  annually  thereafter,  the  company  shall  appropriate  a 
sum  sufficient  to  purchase  at  par,  and  cancel,  1%  of  the  bonds  outstanding  and  also  appro- 
priate a  sum  equal  to  the  interest  on  the  bonds  thus  cancelled.  If  bonds  are  not  purchased, 
the  proceeds  of  the  sinking  fund  at  the  time  shall  revert  to  the  treasury  of  the  company. 

Trustee:  Commercial  Trust  Company,  Philadelphia. 

The  Cambria  &  Clearfield  Railway  Company  was  formed  June  25,  1903,  as  a  consolidation  of 
the  Pemisylvania  &  Northwestern  Railroad,  the  Millersburg  Railroad,  the  Cambria  &  Clearfield 
Railroad,  the  Cresson  &  Ivrona  Railroad,  the  Ebensburg  &  Black  Lick  Railroad,  the  Tyrone  & 
Clearfield  Railway  Companies.  Of  its  $4,835,912  capital  stock,  the  Pennsylvania  Railroad  Company 
owns  $4,833,850. 


JOHNSONBURG   RAILROAD 

First  Mortgage  6s 

Dated  January  16,  1889  Maturing  March  1,  1929 

Interest  payable  March  1  and  September  1  at  Guarantee  Trust  &  Safe  Deposit  Company,  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

xiuthorized  $200,000  Outstanding  $200,000 

Per  mile  .    .       10,000 

Securit}':  The  above  bonds  are  secured  by  a  first  mortgage  on  the  entire  line  of  the  company,  extend- 

ing from  Johnsonburg  to  Clermont,  Pa.,  19.65  miles,  including  all  depots,  and  other  property, 
[  617  ] 


both  real  and  personal,  now  owned  or  hereafter  acquired,  also  all  franchises,  incomes  and 
profits. 

Trustee:  Guarantee  Trust  &  Safe  Deposit  Company,  Philadelphia. 

The  Johnsonburg  Railroad  Company  was  chartered  March  14,  1887,  and  its  road  was  opened 
for  traffic  the  following  year.  It  was  leased  to  the  Pennsylvania  Railroad  Company  for  50  years 
from  July  8,  1889,  at  a  rental  equal  to  net  earnings  of  the  property,  after  operating  expenses,  taxes 
and  interest  had  been  paid.  The  property  of  the  company  is  operated  as  an  integral  part  of  the 
Pennsylvania  Railroad  Company  System.  The  latter  company  owns  $150,000  each  of  its  capital 
stock  and  funded  debt. 

These  bond.s  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


UNITED    NEW    JERSEY   RAILROAD    &   CANAL    COMPANY 

General  Mortgage  4s  and  sHs.     Mortgage  dated  April  20,  1871 

(i)  General  4s 

Dated  188:5  Maturing  February  1.  192.S 

Interest  payable  February  1  and  August  1  at  Comj)any's  office,  Philadel])hia. 

Registered  bonds  of  $1,000. 
Listed  on  Philadel])hia  Stock  Exchange  Ouistanding  $1,8(^4,000 

(2)  General  4s 

Dated  188!)  Maturing  September  1,  1929 

Interest  payable  ]March  1  and  September  1  at  Comi)any"s  office,  Philadelphia. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $1,000. 

Outstanding  $fi,020,000 

(3)  General  4s 

Dated  1894  Maturing  March  1,  1944 

Interest  i)ayable  March  1  and  September  1  at  National  Bank  of  Commerce,  New  York, 
and  Company's  office,  Philadelphia. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $1,000. 
Listed  on  New  York  and  Philadelphia  Stock  Exchanges  Outstanding  $.5,646,000 

(4)  General  i^s 

Dated  1901  Maturing  March  1,  1951 

Interest  payable  March  1  and  Se])tember  1  at  the  National  Bank  of  Commerce,  New  York, 

and  at  the  Company's  office,  Philadelphia. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $1,000. 

Outstanding  $.5,669,000 

I   «1H   I 


(5)  General  4s 

Dated  1908  Maturing  September  1,  1948 

Interest  payable  March  1  and  September  1  at  the  Company's  office,  Philadelphia. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $1,000. 

Outstanding  $841,000 

Total  authorization  $'20,000,000  Outstanding  $120,000,000 

Per  mile  .    .  137,000 

Security :  The  above  bonds  are  a  direct  obligation  of  the  company,  and  are  secured  by  a  first  mortgage 

on  the  Delaware  &  Raritan  Canal,  connecting  the  Delaware  and  Raritan  Rivers  with  ap- 
purtenances thereof  and  franchises  (66  miles).  They  are  further  secured  by  a  first  mortgage 
on  the  company's  road  from  Camden  to  South  Amboy,  N.  J.,  from  Trenton  to  Jersey  City 
and  branches,  totalling  146.02  miles,  together  with  terminal  property  at  Jersey  City,  also 
buildings,  rolling  stock  now  owned  or  hereafter  acquired,  and  franchises.  The  lien  does  not 
include  the  "Harsimus  Cove  property"  and  the  branch  road  thereto  and  property  at  Hobo- 
ken  and  lands  not  used  for  canal  or  railroad  purposes. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Pennsyl- 
vania Railroad  Company  under  the  terms  of  its  lease. 

Trustee:  Fidelity  Trust  Company,  Philadelphia. 

The  United  New  Jersey  Railroad  &  Canal  Company  was  organized  in  1872  as  a  consolidation  of 
the  Delaware  &  Raritan  Canal  Company,  the  Camden  &  Amboy  Railroad  &  Transportation  Com- 
pany and  the  New  Jersey  Railroad  &  Transportation  Company.  It  was  leased  in  May,  1871,  to 
the  Pennsylvania  Railroad  Company  for  999  years  at  a  rental  of  10%  on  the  total  share  capital 
and  interest  on  all  outstanding  debts.  The  lessees  took  possession  of  the  properties  December  1, 
1871,  and  have  since  operated  them. 

The  General  4s  of  1923  sold  in  1906  on  a  3.85  basis 


1907 

3.85 

1908 

3.77 

1909 

3.80  (bid) 

1910 

3.80  to  4.00 

1911 

4.00  (bid) 

:,  1912 

4.10  (bid) 

The  General  4s  of  1929  were  quoted  in  1909  on  a  3.85  basis  (bid) 

1910  3.95 

1911  3.95 
December,  1912  4.05 

The  General  4s  of  1944  .sold  in  1904  on  a  3.50  basis 

1909  3.80  (bid) 

1910  3.77  to  3.85 

1911  3.90 
December,  1912  4.05  (bid) 

The  General  3j^s  of  1951  were  quoted  December,  1912,  on  a  4.12  basis  (bid). 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 

L  619  J 


PHILADELPHIA,  GERMANTOWN    &   CHESTNUT   HILL   RAILROAD 
First  Mortgage  4J^s 

Dated  May  1,  1883  Maturing  May  1,  1913 

Interest  payable  May  1  and  November  1  at  the  Broad  Street  Station,  Philadelphia. 

Registered  bonds  of  $1,000. 

Authorized  $1,000,000  Outstanding  $1,000,000 

Per  mile  .    .  77,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  13.16  miles  of  the  company's  road  from 

Germantown  Junction  to  Chestnut  Hill  and  Fort  Hill,  Pa.,  together  with  lands,  buildings, 
rolling  stock,  franchises  and  all  incomes. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Penn- 
sylvania Railroad  Company  under  the  terms  of  its  lease,  and  have  been  ASSUMED  by  the 
Connecting  Railway  Company. 

Sinking  fund :  Each  year  the  company  agrees  to  set  aside  from  net  earnings  an  amount  sufficient  to  pur- 
chase $10,000  of  these  bonds  at  not  exceeding  par.  If  bonds  are  not  purchasable  at  that 
price,  the  sum  is  returned  to  the  treasury  and  added  to  the  amount  to  be  paid  in  any  subse- 
quent year. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Connecting  Railway  First  Mortgage  4s  of  1951,  a 

sufficient  amount  of  which  has  been  reserved  to  retire  this  issue  at  maturity. 

The  Philadelphia,  Germantown  &  Chestnut  Hill  Railroad  was  projected  in  1882.  It  was  leased 
from  May  1,  1883,  for  30  years  to  the  Pennsylvania  Railroad  Company  at  a  rental  equal  to  4i}/2% 
interest  on  the  above  bonds.  On  January  1,  1902,  this  road,  with  others,  was  consolidated  into  the 
Connecting  Railway  Company,  which  is  leased  to  the  Pennsylvania  Railroad  Company. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


CONNECTING   RAILWAY   COMPANY 

First  Mortgage  4s 

Dated  June  21,  1911  Maturing  March  15,  1951 

Interest  payable  March  15  and  September  15  at  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $15,000,000  Outstandmg  $2,079,000 

Per  mile  .    .  57,000 

Provisions  of      Of  the  $15,000,000  authorized,  $1,000,000  are  reserved  to  provide  for  the  retirement  of  the 
issue:  Philadelphia,  Germantown  &  Chestnut  Hill  4^8  of  1913,  $11,921,000  are  reserved  for  ex- 

tensions, etc.,  and  $2,079,000  are  in  the  hands  of  the  public,  as  above. 
[  (520  ] 


Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  35.98  miles  of  the  company's  road,  also 

on  branches,  extensions,  sidings,  future  acquisitions,  franchises,  incomes  and  profits.  They 
are  secured  by  a  first  mortgage  on  22.82  miles,  including  the  line  from  a  point  near  Frankford 
Junction  to  Girard  Avenue,  West  Philadelphia.  They  are  secured  by  a  second  mortgage  on 
the  13.16  miles  covered  by  the  first  lien  of  the  Philadelphia,  Germantown  &  Chestnut  Hill 
First  4s  of  1913. 

The  bonds  are  GUARANTEED  as  to  INTEREST  by  the  Pennsylvania  Railroad  Company. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

The  Connecting  Railway  Company  was  chartered  April  4,  1863,  and  its  road  was  opened  for 
traffic  January  1,  1868.  It  was  leased  to  the  Philadelphia  &  Trenton  Railroad  Company,  which, 
in  turn,  is  leased  for  999  years  to  the  Pennsylvania  Railroad  Company.  The  latter  owns  the  entire 
outstanding  stock  of  the  Connecting  Railway  Company. 


BELVIDERE  DELAWARE   RAILROAD 

Consolidated  Mortgage  Sinking  Fund  4s  and  sHs 
Mortgage  dated  December  i,  1875 

(i)  Consolidated  4s 

Dated  1885  Maturing  September  1,  1925 

Interest  payable  March  1  and  September  1  at  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $1,000. 

Outstanding  $500,000 

(2)  Consolidated  4s 

Dated  1887  Maturing  February  1,  1927 

Interest  payable  February  1  and  August  1  at  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $1,000. 
Listed  on  the  Philadelphia  Stock  Exchange  Outstanding  $749,000 

(3)  Consolidated  4s 

Dated  1893  Maturing  January  1,  1933 

Interest  payable  January  1  and  July  1  at  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $1,000.     Registered  bonds  of  $1,000. 

Outstanding  $416,000 
[  6^21   ] 


(4)  Consolidated  3>^s 

Dated  1903  Maturing  January  1,  1943 

Interest  payable  January  1  and  July  1  at  Broad  Street  Station,  Philadelphia,  and  Bank  of 

Commerce,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Listed  on  the  New  York  and  Philadelphia  Stock  Exchanges  Outstanding  $97'-2,00() 

Authorized  $4,000,000  Outstanding  $-2,637,000 

Per  mile  .    .  32,500 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  entire  road  of  the  company,  total- 

ling 81.06  miles,  including  the  line  from  Trenton  to  Manunka  Chunk,  together  with  all  build- 
ings, lands,  between  the  said  termini,  franchises,  rolling  stock  and  all  incomes. 

All  the  bonds  of  this  issue,  except  the  Consolidated  4s  of  1933,  have  been  GUARANTEED 
as  to  PRINCIPAL  and  INTEREST  by  the  United  New  Jersey  Railroad  &  Canal  Company, 
by  endorsement.    The  Pennsylvania  Railroad  Company  has  ASSUMED  this  guarantee. 

Sinking  fund:  Beginning  January  1,  1880,  the  company  agrees  to  set  aside  out  of  net  earnings  an  amount 
equal  to  1%  of  all  the  bonds  outstanding,  to  be  applied  annually  to  the  purchase  of  these 
bonds  at  not  exceeding  105.  If  in  any  year  net  earnings  shall  not  equal  1%  of  the  principal, 
the  whole  earnings  shall  be  appropriated  to  the  fund.  If  bonds  cannot  be  purchased  at  105, 
the  fund  may  be  invested  in  other  lawful  securities. 

Trustee:  Commercial  Trust  Company,  Philadelphia. 

The  Belvidere  Delaware  Railroad  Company  was  chartered  March  2,  1835,  and  its  road  was 
completed  on  November  5, 1855.  It  was  leased  to  the  United  New  Jersey  Railroad  &  Canal  Company 
and  operated  as  the  Belvidere  Division  of  the  same  until  March  7,  1876,  when  the  lease  was  assigned 
to  the  Pennsylvania  Railroad  Company.  The  lease  will  terminate  in  2870.  The  capital  stock  of  the 
Belvidere  Delaware  Railroad  Company  is  entirely  OAvned  by  the  Pennsylvania  Railroad  and  the 
United  New  Jersey  Railroad  &  Canal  Company. 

The  CJonsolidated  4s  of  1925  were  quoted  in  1909  on  a  3.90  basis  (bid). 

The  ("onsolidated  4s  of  1927  were  offered  in  December,  1912,  on  a  4.27  })asis  ())id). 

The  Consolidated  4s  of  1933  were  quoted  in  1909  on  a  3.95  basis  (bid). 

The  Consolidated  3J^s  of  1943  were  sold  in  1909  on  a  3.90  basis 
were  quoted  in  1910  3.95  (bid) 

1911  4.12 

December,  1912  4.22 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Connecticut 
and  Rhode  Island. 


[  622  ] 


DELAWARE   RIVER   RAILROAD    &   BRIDGE   COMPANY 

First  Mortgage  Sinking  Fund  4s 

Dated  August  1,  189(5  Maturing  August  1,  1936 

Interest  payable  February  1  and  August  1  at  Broad  Street  Station,  Philadelphia. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $1,300,000 


Outstanding  $1,293,000 
Per  mile  .    .        129,300 


Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  a  junction  of 

the  Connecting  Railway  and  Frankford  Avenue,  Philadelphia,  to  Haddenfield,  a  connection 
with  the  Camden  &  Burlington  County  Railroad,  9.52  miles,  together  with  lands,  depots, 
rolling  stock  now  owned  or  hereafter  acquired,  franchises,  income  and  profits. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Penn- 
sylvania Railroad  Company  by  endorsement. 

Sinking  fund:  Beginning  August  1,  1897,  and  annually  thereafter,  the  company  will  set  aside  from  net 
earnings  an  amount  equal  to  1%  of  the  bonds  outstanding,  and  apply  the  same  to  the  purchase 
of  these  bonds  at  par  and  interest,  and  also,  an  additional  sum,  to  be  applied  in  like  manner 
equal  to  the  interest  upon  the  bonds  so  purchased.  If  the  bonds  are  not  purchasable  at  par, 
the  sum  so  appropriated  shall  be  returned  to  the  treasury  of  the  company  free  from  the  obli- 
gations of  the  trust. 


Trustee : 


Girard  Trust  Company,  Philadelphia. 


The  Delaware  River  Railroad  &  Bridge  Company  was  chartered  March  17,  1896,  and  its  road 
was  opened  for  traffic  April  19,  1896.  The  company  is  a  consolidation  of  the  Pennsylvania  &  New 
Jersey  Railroad  of  Pennsylvania,  and  the  Pennsylvania  &  New  Jersey  Railroad  of  New  Jersey. 
It  is  operated  and  owned  by  the  Pennsylvania  Railroad  Company. 

These  bonds  were  quoted  in  1909  on  a  4.12  basis  (bid) 

1910  4.65 

1911  3.98 
December,  1912  4.05 

These  bonds  arc  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Vermont. 


[  623  ] 


WESTERN   NEW  YORK   &  PENNSYLVANIA  RAILWAY 
First  Mortgage  5s 

Dated  December  1,  1887  Maturing  January  1,  1937 

Interest  payable  January  1  and  July  1  at  New  York  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $10,000,000  Outstanding  $9,990,000 

Per  mile  .    .  21,400 

Security:  The  above  bonds  are  secured  by  a  first  mortgage,  or  a  first  collateral  trust,  on  466.73  miles 

of  road,  and  terminal  properties,  also  on  lands,  depots,  equipment  now  owned  or  hereafter 
acquired,  franchises,  incomes,  and  profits  of  the  company.  They  are  secured  by  a  first  mortgage 
on  464.41  miles  of  road,  including  the  lines  from  Oil  City,  Pa.,  to  Buffalo,  N.  Y.,  from  Buffalo 
to  Emporium  Junction,  Pa.,  from  Olean,  N.  Y.,  to  Warren,  Pa.,  and  from  Irvineton  to  Oil 
City,  Pa.;  and  by  a  first  collateral  trust  on  terminal  property  in  Buffalo,  also  a  lien  on  the 
rights  and  interests  of  the  company  in  the  franchises  and  properties  of  its  subsidiaries. 

Equity :  These  bonds  are  prior  in  lien  to  the  company's  General  Mortgage  4s  of  1943  and  Income  Mort- 

gage 5s  of  1943. 

Trustee:  Bankers'  Trust  Company,  New  York. 

The  Western  New  York  &  Pennsylvania  Railway  Company  was  incorporated  March  18,  1895, 
as  a  reorganization  of  the  Western  New  York  &  Pennsylvania  Railroad  Company.  On  August  1, 
1900,  the  Pennsylvania  Railroad  Company  leased  its  property  for  one  year.  This  was  extended 
to  20  years  from  August  1,  1903,  at  a  rental  equal  to  the  net  earnings  of  the  company.  Almost  the 
entire  capital  stock  of  the  company  is  owned  by  the  Pennsylvania  Railroad  Company. 

These  bonds  were  quoted  in  December,  1912,  on  a  4.55  basis  (bid). 


WESTERN   NEW  YORK   &  PENNSYLVANIA  RAILWAY 
General  Mortgage  4s 

Dated  Aj)ril  1,  1895  Maturing  April  1,  1943 

Interest  payable  April  1  and  October  1  at  New  York  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  princijial. 

Authorized  $10,000,000  Outstanding  $10,000,000 

Per  mile  .    .  20,500 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage,  or  by  collateral  trust  on  487.49  miles 

of  road,  together  with  lands,  depots,  rolling  stock,  franchises,  incomes,  etc.    They  are  secured 

by  a  first  mortgage  on  20.76  miles  of  road;   by  a  second  mortgage  on  464.41  miles  covered  by 

the  first  lien  of  the  First  Mortgage  5s  of  1937;   in  effect  a  second  mortgage  on  the  terminal 

[  (524  ] 


property  in  Buffalo  covered  by  the  First  Collateral  Trust  of  the  First  Mortgage  5s  of  1937 
(which  see) ;  also  a  second  mortgage  on  the  rights  and  interests  of  the  company  in  the  franchises 
and  properties  of  its  subsidiaries. 

Equity:  These  bonds  are  prior  in  lien  to  the  company's  Income  Mortgage  .5s  of  1943. 

Trustee:  Union  Trust  Company,  New  York. 

For  history,  see  page  624. 

These  bonds  were  quoted  December,  1912,  on  a  4.85  basis  (asked). 


WESTERN    NEW   YORK    &   PENNSYLVANIA   RAILWAY 
Income  Mortgage  5s 

Dated  April  1,  1805  Maturing  April  1,  1943 

Interest  payable  November  1,  when  earned,  at  Fidelity  Trust  Company,  Philadelphia. 

Interest  is  non-cumulative. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  .$10,000,000  Outstanding  $10,000,000 

Per  mile  .    .  2''2,C00 

Provisions  of      Of  the  $10,000,000  outstanding,  $9,165,139  are  owned  by  the  Pennsylvania  Railroad  Corn- 
issue:  pany,  $439, 8G1  are  held  by  the  public,  and  $395,000  are  held  in  the  treasury  of  the  company. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  or  by  collateral  trust  on  442.51  miles  of 

road,  including  lands,  interest,  equipment  and  future  acquisitions.  They  are  secured  on  the 
property  of  the  company  subject  to  the  First  Mortgage  5s  of  1937  and  the  General  Mortgage 
4s  of  1943. 

The  indenture  provides  that  interest  shall  be  paid  not  exceeding  5%  from  net  earnings  for 
each  year  after  deducting  operating  expenses,  taxes  and  all  other  interest. 

Trustee:  Fidelity  Trust  Company,  Philadelphia. 

For  history,  see  jiage  624. 

These  bonds  were  quoted  December,  1912,  at  30  (bid). 


BOND  DESCRIPTIONS   OF   CONTROLLED   ROADS 

Following  are  descriptions  of  bond  issues  of  companies  operated  independently  but  controlled 
through  stock  ownership  by  the  Pennsylvania  Railroad  Company : 

[  625  ] 


WEST   JERSEY   &   SEASHORE  RAILROAD 
First  Consolidated  Mortgage  Sinking  Fund  3  Ms  and  4s 


Dated  July  1,  1896 


Maturing  July  1,  1936 
Interest  payable  January  1  and  July  1  at  Broad  Street  Station,  Philadelphia. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $7,000,000 


Outstanding  in  series 


"A' 

'4s  ; 

$1,599,000 

"B' 

'  33/^s 

1,329,000 

"C 

'm^ 

909,000 

"D' 

"  4s 

1,017,000 

"E' 

'4s 

685,000 

"F' 

'4s 

999,000 

Provisions  of 


Security : 


Sinking  fund : 


Trustee: 


Total  per  mile  $19,600 

Of  the  total  amount  authorized,  $6,538,000  are  outstanding  as  above,  $372,000  have  been 
retired  by  the  sinking  fund,  and  $90,000  have  been  reserved  to  retire  prior  liens. 

The  above  bonds  are  secured  by  a  direct  mortgage  on  386.72  miles  of  the  company's  road, 
together  with  branches  and  extensions,  lands,  buildings,  franchises  and  incomes.  They  are 
secured  by  a  first  mortgage  on  325.52  miles,  including  the  lines  from  Camden  to  Atlantic 
City  and  Cape  May;  and  by  a  second  mortgage  on  11.2  miles  covered  by  the  first  lien  of 
the  Woodstown  &  Swedesboro  First  Mortgage  6s  of  1912. 

Beginning  July  1,  1897,  and  annually  thereafter,  the  company  will  appropriate  from  its  net 
earnings  a  sum  equal  to  1%  of  the  outstanding  bonds  and  apply  the  same  to  their  purchase 
at  par  and  interest,  bonds  so  purchased  to  be  cancelled  and  retained  by  the  trustee.  An 
additional  sum,  equal  to  the  interest  on  the  bonds,  will  be  a])plied  in  the  same  manner.  If 
bonds  are  not  purchasable  at  par,  the  sum  thus  appropriated  shall  revert  to  the  treasury  of 
the  company. 

Commonwealth  Title,  Insurance  &  Trust  Company,  Philadelphia. 


The  West  Jersey  &  Seashore  Railway  Company  was  incorporated  under  the  laws  of  New  Jersey 
on  May  4,  1896,  as  a  consolidation  of  the  West  Jersey  Railroad  Company  and  its  subsidiaries. 
In  May,  1900,  the  company  absorbed  the  property  of  the  Delaware  River  Railway  Company. 
A  majority  of  the  capital  stock,  both  common  and  preferred,  is  owned  by  the  Pennsylvania  Rail- 
road Company,  also  the  United  New  Jersey  Railroad  and  Canal  Company  holds  an  interest  in  the 
common  stock  of  this  company. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


[  f)'-2r> 


NORTHERN   CENTRAL   RAILWAY 
Consolidated  General  Mortgage  4US.    Series  "E" 

Dated  May  26,  1874  IVIaturing  April  1,  1925 

Interest  payable  April  1  and  October  1  at  the  Treasurer's  office,  Baltimore. 

Coupon  bonds  of  $1,000. 

Authorized  $10,000,000  Outstanding  $1,757,000 

Series  "E" 
Per  mile  .    .  12,200 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  144.45  miles  of  the  company's  road, 

including  the  line  from  Baltimore  to  Sunbury,  Pa.,  together  with  equipment,  rolling  stock, 
leaseholds,  franchises,  lands  and  buildings,  subject  to  the  first  lien  of  the  Northern  Central 
Irredeemable  6s,  owned  by  the  State  of  Maryland. 

Equity:  These  bonds  are  prior  in  lien  to  the  company's  Second  General  Mortgage  Currency  5s  of  1926. 

Trustee:  Fidelity  Trust  Company,  Philadelphia. 

The  Northern  Central  Railway  Company  was  organized  December  9,  1854,  as  a  consolidation 
of  the  Baltimore  &  Susquehanna  Railroad,  the  York  &  Maryland  Line  Railroad,  the  York  &  Cum- 
berland Railroad  and  the  Susquehanna  Railroad  Companies.  A  controlling  interest  in  the  capital 
stock  of  this  company  is  owned  by  the  Pennsylvania  Railroad  Company.  The  latter's  proposal 
to  lease  the  property  of  this  company  at  a  rental  of  8%  on  the  stock  and  providing  for  a  40%  increase 
on  said  stock  was  approved  in  April,  1911,  by  the  Public  Service  Commission  of  Maryland.  This 
lease  will  not  become  effective  imtil  two  suits  presented  by  the  minority  stockliolders  against  the 
proposition  have  been  settled. 

These  bonds  sold  in  1902  on  a  3.50  to  3.70  basis 


1904 

3.65   3.85 

1905 

3.60   3.75 

1906 

3.85   3.90 

1907 

3.85   4.20 

1908 

3.80   4.05 

1909 

4.00 

1910 

3.85   4.05 

1911 

4.10  (bid) 

T,  1912 

4.30  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hanii)shire  and  Rhode  Island. 


[  (527  ] 


NORTHERN    CENTRAL    RAILWAY 
Second  General  Mortgage  5s 

Dated  January  1,  1876  Maturing  January  1,  ID^e 

Interest  payable  January  1  and  July  1  at  the  Treasurer's  office,  Baltimore. 

Coupon  bonds  of  $1,000. 

Authorized  $5,000,000  Outstanding  "Series  A"  $2,56.5,000 

"Series  B"    1,000,000 
Per  mile 24,750 

Security:  The  above  bonds  are  secured  by  a  third  mortgage  on  144.45  miles  of  the  company's  road, 

subject  to  the  Northern  Central  Irredeemable  6s  belonging  to  the  State  of  Maryland  and  the 
Consolidated  General  Mortgage  4j/^s  of  1925  (which  see). 

Sinking  fund:  For  "Series  A"  the  company  agreed  in  1880  and  annually  thereafter  to  apply  $30,000  to  the 
purchase  and  redemption  of  those  bonds.  No  bonds  of  "Series  A"  have  been  redeemed  by 
the  sinking  fund,  however,  since  1894. 

Trustee:  Fidelity  Trust  Company,  Philadelphia. 

For  history,  see  page  627. 


"Series  A"  of  this  issue  sold  in  1902  on 

a  3.45  to  3.57  basis 

1903 

3.65 

1904 

3.77 

1905 

3.60 

3.65 

1906 

3.70 

3.85 

1907 

3.85 

3.95 

1908 

4.12 

4.15 

1909 

3.95 

1910 

4.12 

4.20 

1911 

4.10 

(bid) 

December,  1912 

4.25  1 

(bid) 

"Series  B"  of  this  issue  sold  in  1902  on 

a  3.40  to  3.45  basis 

1903 

3.67 

1904 

3.67 

1905 

3.60 

3.67 

1906 

3.80 

1908 

4.15 

4.35 

1909 

4.15 

1910 

4.00 

4.12 

1911 

4.10 

(bid) 

December,  1912 

4.25 

(bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


[  C.IH   1 


ELMIRA   &  WILLIAMSPORT   RAILROAD 
First  Mortgage  4s 

Dated  May  11,  1860  Maturing  January  1,  1950 

Interest  payable  January  1  and  July  1  at  Broad  Street  Station,  Philadelphia. 

Registered  bonds  of  $1,000. 

Authorized  $1,000,000  Outstanding  $063,000 

Per  mile  .    .       13,200 

These  bonds  were  extended  January  1,  1880,  and  January  1,  1010,  interest  being  reduced 
from  7%  and  from  6%  respectively. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Williarasport, 

Pa.,  to  Elmira,  N.  Y.,  73.49  miles,  together  with  lands,  buildings,  equipment  and  future 
acquisitions. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  North- 
ern Central  Railway  Company  under  the  terms  of  its  lease. 

Convertibility:  These  bonds  are  convertible  into  the  common  stock  of  the  company  at  any  time. 

The  Elmira  &  Williamsport  Railroad  was  leased  in  1863  to  the  Northern  Central  Railway  Com- 
pany for  999  years,  at  an  annual  rental  equal  to  the  interest  on  outstanding  bonds,  taxes,  operating 
expenses  and  dividends  on  stock.  The  Northern  Central  Railway  Company  is  controlled  by  the 
Pennsylvania  Railroad  Company  through  ownership  of  practically  its  entire  capital  stock.  The 
latter  has  guaranteed  all  payments  under  the  lease. 

These  bonds  sold  in  1902  on  a  3.35  basis 


1903 

3.70  to  4.50  basis 

1904 

4.00 

4.50 

1905 

4.30 

1906 

4.10 

4.80 

1907 

6.00 

1908 

3.65 

5.87 

1909 

4.60 

4.95 

1910 

4.00 

1911 

4.02 

December,  1912 

4.05 

(bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


[  629  ] 


ELMIRA   &  WILLIAMSPORT  RAILROAD 

Income  5s 

Dated  May  1,  1863  Maturing  October  1,  aSG'-i 

Interest  payable  April  1  and  October  1  at  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $500. 
Authorized  $570,000  Outstanding  $570,000 

Security :  The  above  bonds  are  a  direct  obligation  of  the  Elmira  &  Williamsport  Railroad  Company,  but 

are  not  secured  by  a  mortgage.     It  is  stated  on  the  face  of  the  bonds,  however,  that  pay- 
ments thereunder  are  GUARANTEED  by  the  Pennsylvania  Railroad  Company. 

For  history,  see  page  629. 


SODUS  BAY   &   SOUTHERN   RAILROAD 

First  Mortgage  5s 

Dated  July  1,  1884  Maturing  July  1,  1924 

Interest  payable  January  1  and  July  1  at  National  Bank  of  Commerce,  New  York. 

Coupon  bonds  of  $1,000. 

Authorized  $500,000  Outstanding  $500,000 

Per  mile  .    .       14,700 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road  from  Sodus  Point 

to  Stanley,  N.  Y.,  34.06  miles,  together  with  lands,  buildings,  equipment,  franchises   now 
owned  or  hereafter  acquired  and  all  incomes. 

These  bonds  have  been  ASSUMED  by  the  Elmira  &  Lake  Ontario  Railroad  Company. 

Trustee:  Union  Trust  Company,  New  York. 

The  Sodus  Bay  &  Southern  Railroad  Company  was  organized  on  March  19,  1862,  as  the  Sodus 
Point  &  Southern  Railroad  Company.  Its  road  was  opened  for  traffic  July  4,  1872.  The  company 
was  reorganized  after  foreclosure  as  the  Ontario  Southern  Railway  in  June,  1875,  and  in  1879  took 
the  title  of  the  Lake  Ontario  &  Southern  Railroad  Company.  After  a  second  reorganization  in  Sep- 
tember, 1882,  its  title  was  again  changed  to  the  present  one.  In  1886  the  company  was  consolidated 
into  the  Elmira  &  Lake  Ontario  Railroad  Company.  The  entire  capital  stock  of  the  latter  is  owned, 
and  the  property  is  operated  by  the  Northern  Central  Railway  Company,  which  is  controlled  by 
the  Pennsylvania  Railroad  Company. 

These  bonds  sold  in  1903  on  a  4.85  basis 

1909  5.00  (bid) 

1910  5.00  (bid) 
1912  5.05 

1  (VM  ] 


BALTIMORE,  CHESAPEAKE   &  ATLANTIC   RAILWAY 
First  Mortgage  5s 

Dated  September  1,  1894  Maturing  September  1,  1934 

Interest  payable  March  1  and  September  1  at  Broad  Street  Station,  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $1,250,000  Outstanding  $1,250,000 

Per  mile  .    .  14,200 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  entire  road,  87.66  miles, 

extending  from  Claiborne  to  Ocean  City,  Md.,  together  with  all  buildings,  equipment,  steam- 
boats, docks,  terminal  properties,  franchises,  incomes  and  profits. 

Trustee:  Metropolitan  Trust  Company,  New  York. 

The  Baltimore,  Chesapeake  &  Atlantic  Railway  Company  was  organized  under  the  laws  of 
Maryland,  September  1,  1894,  as  the  successor  to  the  Baltimore  &  Eastern  Shore  Railroad,  the 
Eastern  Shore  Steamboat  Company,  the  Maryland  Steamboat  Company  and  the  Choptank  Steam- 
boat Company.  It  is  controlled  by  the  Pennsylvania  Railroad  Company  and  subsidiaries  through 
ownership  of  practically  all  the  capital  stock. 

These  bonds  were  quoted  in  December,  1912,  on  a  5.00  basis  (bid) 

They  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


MARYLAND,  DELAWARE   &  VIRGINIA   RAILWAY 
First  Mortgage  5s 

Dated  February  1,  1905  Maturing  February  1,  1955 

Interest  payable  February  1  and  August  1  at  Treasurer's  office,  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $2,000,000  Outstanding  $2,000,000 

Per  mile  .    .  25,650 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  entire  road,  78.33  miles, 

together  with  buildings,  equipment,  personal  and  real  estate  belonging  to  said  railroad  and 
branches,  all  steamboats,  fourteen  in  number,  docks,  piers  and  terminal  i)roperties  of  the 
company  wherever  situated,  also  franchises,  incomes  and  profits  thereof. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  EVTEREST  by  the  Balti- 
more, Chesapeake  &  Atlantic  Railway  Company  by  endorsement. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

The  Maryland,  Delaware  &  Virginia  Railroad  Company  was  chartered  as  the  Queen  Anne's 
Railroad  Company  under  the  laws  of  Maryland  in  1894,  and  in  Delaware  in  1895.     Its  road  was 

[  631  ] 


opened  for  traffic  March  1,  1898.  The  property  was  placed  in  the  hands  of  a  receiver  February, 
1904,  was  reorganized  in  January,  1905,  and  began  operations  February  1,  1905,  under  its  present 
title.  It  is  controlled  by  the  Baltimore,  Chesapeake  &  Atlantic  Railway  Company  through  the 
ownership  of  a  majority'  of  its  capital  stock.  The  latter,  in  turn,  is  owned  by  the  Pennsylvania 
Railroad  Company  and  subsidiaries  through  ownership  of  a  majority  of  its  capital  stock. 


NEW  YORK,  PHILADELPHIA   &  NORFOLK  RAILROAD 
First  Mortgage  4s 

Dated  February  1,  1899  Maturing  January  1,  1939 

Interest  payable  January  1  and  July  1  at  26  South  15th  Street,  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $3,000,000  Outstanding  $2,600,000 

Per  mile  .    .  23,200 

Provisions  of      Of  the  $3,000,000  bonds  authorized,  $400,000  are  reserved  for  betterments,  and  $2,600,000 
issue:  are  in  the  hands  of  the  public,  as  above. 

Security:  The  bonds  are  secured  by  a  first  mortgage  on  112  miles  of  road,  including  the  line  from  Del- 

mar,  Del.,  to  Cape  Charles,  Va.,  and  a  branch  to  Cristfield,  Md.,  together  with  all  property, 
real  or  personal,  now  owned  and  future  acquisitions,  for  use  in  connection  with  the  railroad, 
depots,  equipment,  rolling  stock,  all  other  railroads  hereafter  constructed,  purchased  or  merged, 
tugs,  barges,  etc. 

Equity:  These  bonds  are  prior  in  lien  to  the  company's  Income  Mortgage  4s  of  1939  (see  following). 

Trustee:  Fidelity  Trust  Company,  Philadelphia. 

The  New  York,  Philadelphia  &  Norfolk  Railroad  Company  was  chartered  under  the  laws  of 
Virginia  September  27,  1881,  as  the  successor  to  the  Peninsular  Railroad  Company  of  Virginia. 
It  was  reorganized  without  foreclosure  or  change  of  name  on  January  24,  1899.  It  is  controlled  by 
the  Pennsylvania  Railroad  Company  through  ownership  of  $2,492,750  of  the  capital  stock,  acquired 
by  exchanging  the  same  for  4%  Forty-year  Pennsylvania  Railroad  Trust  Certificates  at  the  rate  of 
$1,000  in  stock  for  $3,000  in  certificates. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


1  (>:;2 


NEW  YORK,  PHILADELPHIA   &   NORFOLK  RAILROAD 
Income  Mortgage  4s 

Dated  February  1,  1899  Maturing  January  1,  1939 

Interest  payable  May  1  and  Noveniljer  1  as  declared  by  directors  from  net  earnings. 

Interest  is  non-cumulative. 

Registered  bonds  of  $1,000. 

Authorized  $1,000,000  Outstanding  $1,000,000 

Per  mile  .    .  8,925 

Security:  The  above  bonds  are  a  direct  obligation  of  the  New  York,  Philadelphia  &  Norfolk  Railroad 

Company.     They  are  secured  by  a  second  mortgage  on  the  property  covered  by  the  first  lien 
of  the  company's  First  Mortgage  4s  of  1939  (which  see). 

Trustee :  Fidelity  Trust  Company,  Philadelphia. 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


GIRARD   POINT   STORAGE   COMPANY 

First  Mortgage  3I2S 

Dated  April  1,  1890  Maturing  April  1,  1940 

Interest  payable  Ajiril  1  and  October  1  at  Treasurer's  office,  Philadelphia. 

Registered  bonds  of  $1,000. 
Authorized  $-2,500,000  Outstanding  $2,043,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  real  estate  at  Girard  Point  and  Point 

Breese,  aggregating  about  105  acres;  together  with  present  and  future  improvements  and 
structures  thereon,  also  franchises,  incomes,  etc. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Pennsylvania 
Railroad  Company  by  endorsement. 

Sinking  fund:  The  company  agrees  to  set  aside  annually  $20,000  to  the  purchase  and  cancellation  of  these 
bonds  at  not  exceeding  par  and  interest.  If  bonds  are  not  purchasable  at  this  price,  the 
fund  for  the  year  reverts  to  the  company. 

Trustee:  Fidelity  Trust  Company,  Philadelphia. 

The  entire  capital  stock  of  the  Girard  Point  Storage  Company  is  owned  by  the  Pennsylvania 
Railroad  Company. 


[  633  ] 


BOND   DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Pennsylvania  Company,  together  with 

the  bases  upon  which  they  have  sold  during  the  decade  ending  December  31,  1912.    Most 

of  these  issues  have  been  guaranteed  by  the  Pennsylvania  Railroad  Company, 

which  owns  the  entire  capital  stock  of   the  Pennsylvania   Company. 


PENNSYLVANIA   COMPANY 
First  Mortgage  4l^s 

Dated  April  1,  1881  Maturing  July  1,  1921 

Interest  payable  January  1  and  July  1  at  National  City  Bank,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $20,000,000 


Outstanding  $19,467,000 


Provisions  of      Of  the  total  amount  authorized,  $19,467,000  are  outstanding  as  above,  and  the  balance, 
issue:  $533,000,  has  been  retired  by  the  sinking  fund. 


Security : 


The  above  bonds  are  secured  by  a  first  mortgage  on  all  the  rights  and  interest  of  the  company 
in  the  leases  of  the  Pittsburgh,  Fort  Wayne  &  Chicago  Railway  for  999  years  from  1869, 
the  Cleveland  &  Pittsburgh  Railroad  for  999  years  from  1871,  the  Erie  &  Pittsburgh  Railroad 
for  999  years  from  1870,  and  those  of  the  New  Castle  &  Beaver  Valley  Railroad  and  the 
Lawrence  Railroad,  both  of  which  were  consolidated  into  the  Pittsburgh,  Youngstown  & 
Ashtabula  Railroad.  They  are  further  secured  by  a  first  mortgage  upon  real  estate  of  the 
company  in  Pittsburg,  Allegheny  and  Chicago;  also  on  stocks  and  bonds  deposited  with 
the  trustees  of  a  par  value  of  about  $25,000,000. 


These  bonds   have  been  GUARANTEED  as  to  PRINCIPAL, 
ING   FUND  by  the  Pennsylvania  Railroad  Company. 


INTEREST  and   SINK- 


Sinking  fund:  An  annual  sinking  fund  equal  to  1%  of  the  bonds  outstanding  is  to  be  applied  to  their  purchase 
at  par  and  interest,  bonds  so  purchased  to  be  held  alive  in  the  sinking  fund.  If,  in  any  year, 
bonds  are  not  purchasable  at  or  under  par,  the  amount  set  aside  in  that  year  shall  revert  to  the 
treasury  of  the  company. 


Trustee : 


The  trustees  of  this  issue  at  present  named  are  W. 
N.  P.  Shortridge,  Esq. 


H.  Barnes,  Esq.,  John  P.  Green,  Esq.,  and 


The  Pennsylvania  Railroad  Company  owns  the  entire  $80,000,000  capital  stock  of  the  Penn- 
sylvania Company.  The  latter  was  chartered  by  the  legislature  of  Pennsylvania  April  7,  1870,  for 
the  purpose  of  managing,  in  the  interest  of  the  Pennsylvania  Railroad  Company,  the  railroads 
leased  and  controlled  by  that  company  west  of  Pittsburg.  The  Pennsylvania  Company  was  or- 
ganized April  1,  1871. 

These  bonds  were  sold  in  1902  on  a  3.52  to  3.80  basis 


1903 

3.65 

3.90 

1904 

3.55 

3.85 

1905 

3.57 

3.80 

1906 

3.72 

4.10 

1907 

3.85 

4.50 

1908 

3.85 

4.20 

1909 

3.75 

4.05 

1910 

3.80 

4.15 

1911 

3.95 

4.15 

1912 

3.95 

4.20 

They  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode  Island 


[  (m  ] 


PENNSYLVANIA   COMPANY 
Series  "A"  Trust  Mortgage  3H%  Certificates 

Dated  September  1,  1897  Maturing  September  1,  1937 

Interest  i^ayable  March  1  and  September  1  at  Union  Trust  Conii^any,  New  York. 

Registered  bonds  of  $1,000. 
Authorized  $5,000,000  Issued,  Series  "A"  $5,000,000 

Outstanding  4,439,000 

Provisions  of      It  is  provided  that  the  total  certificates  issued  of  Series  "A,"  "B"  and  "C"  together  shall 
i.ssue:  not  exceed  $20,000,000.    $561,000  of  Series  "A"  have  been  redeemed  by  the  sinking  fund. 

Security:  These  certificates  are  a  direct  obligation  of  the  Pennsylvania  Company,  and  in  case  of  a  de- 

fault of  the  latter,  the  Pennsylvania  Railroad  agrees  to  pay  principal,  interest  and  sinking 
fund.  They  are  further  secured  by  a  deposit  with  the  trustee  of  $5,000,000  7%  guaranteed 
special  stock  of  the  Pittsburgh,  Fort  Wayne  &  Chicago  Railway  Company. 

In  its  indenture  the  company  agrees  not  to  increase  the  bonded  debt  of  the  Pittsburgh,  Fort 
Wayne  &  Chicago  Railway  Company  beyond  its  present  limit,  nor  to  reduce  the  dividend 
below  7%  on  the  stock  pledged  hereunder,  so  long  as  these  certificates  remain  unpaid. 

Sinking  fund:  The  Pennsylvania  Company  will  pay  annually,  beginning  August  15,  1898,  $50,000  to  pur- 
chase these  certificates  at  not  exceeding  par  and  interest.  If,  in  any  year,  certificates  are  not 
purchasable  at  or  under  par,  the  sinking  fund  for  that  year  shall  lapse  to  the  treasury  of  the 
company. 

Trustee:  Girard  Trust  Company,  Philadeli^hia. 

For  history,  see  page  63G. 

These  bonds  were  quoted  in  1909  on  a  4.15  basis  (bid) 

1910  4.10 

1911  4.25 

1912  4.20  to  4.25 

They  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


[  r..s7  ] 


PENNSYLVANIA   COMPANY 
Series  "B"  Trust  Mortgage  3}^%  Certificates 

Dated  February  1,  1901  Maturing  February  1,  1941 

Interest  payable  February  1  and  August  1  at  American  Exchange  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $10,000,000  Issued,  Series  "B"  $10,000,000 

Outstanding  8,816,000 

Provisions  of      It  is  provided  that  the  total  certificates  issued  of  Series  "A,"  "B"  and  "C"  together  shall 
issue:  not  exceed  $20,000,000.     $1,184,000  of  Series  "B"  have  been  redeemed  by  the  sinking  fund. 

Security:  The  same  as  for  Series  "A"  (see  page  637).    They  are  secured  by  a  deposit  with  the  trustee  of 

$10,000,000  7%  guaranteed  special  stock  of  the  Pittsburgh,  Fort  Wayne  &  Chicago  Railway 
Company. 

Sinking  fund:     The  same  as  for  Series  "A"  except  that  the  amount  is  $100,000  annually. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

For  history,  .see  page  636. 

These  bonds  sold  in  1902  on  a  3.55  to  3.62  basis 


1903 

3.65 

3.95 

1905 

3.80 

3.85 

1906 

3.87 

4.05 

1907 

4.40 

4.50 

1908 

3.80 

4.27 

1909 

3.98 

4.10 

1910 

3.98 

4.20 

1911 

4.15 

4.20 

1912 

4.15 

4.40 

They  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


PENNSYLVANIA   COMPANY 
Series  "C"  Trust  Mortgage  3}/^%  Certificates 

Dated  December  1,  1902  Maturing  December  1,  1942 

Interest  i)ayable  June  1  and  December  1  at  American  Exchange  National  Bank,  New  York. 

('oupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $5,000,000  Issued,  Series  "C"  $5,000,000 

Outstanding  4,617,000 

Provisions  of      It  is  provided  that  the  total  certificates  issued  of  Series  "A,"  "B"  and  "C"  together  .shall 
issue:  not  exceed  $20,000,000.    $383,000  of  Scries  "C"  have  been  retired  through  the  sinking  fund. 

[  638  ] 


Security:  The  same  as  for  Series  "A"  (see  page  637).    They  are  secured  by  a  deposit  with  the  trustee 

of  $5,000,000  7%  guaranteed  special  stock  of  the  Pittsburgh,  Fort  Wayne  &  Chicago  Railway 
Company. 

Sinking  fund:     The  same  as  for  Series  "A." 

Trustee:  Girard  Trust  Company,  Philadelphia. 

For  history,  see  page  636. 

These  bonds  sold  in  1906  on  a  4.05  basis 

1908  4.15  to  4.40  basis 

1909  4.05   4.10 

1910  4.05   4.25 

1911  4.20  (bid) 

1912  4.20 

They  are  considered  a  legal  investment  for  savings  banks  in  New  Hampsliire  and  Rhode  Island. 


PENNSYLVANIA   COMPANY 
Series  "D"  Trust  Mortgage  3M%  Certificates 

Dated  December  1,  1904  Maturing  December  1,  1944 

Interest  payable  June  1  and  December  1  at  New  York  and  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Is.sued  $10,000,000  Outstanding  $9,552,000 

$448,000  of  Series  "D"  have  been  retired  through  tiie  sinking  fund. 

Security:  Same  as  for  Series  "A"  (see  page  637).     They  are  secured  by  a  deposit  with  the  trustee  of 

$10,000,000  7%  guaranteed  special  stock  of  the  Pittsburgh,  Fort  Wayne  &  Chicago  Railway 
Company. 

Sinking  fund:     Same  as  for  Series  "A"  except  that  the  amount  is  $100,000  annually. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

For  history,  see  page  636. 

These  bonds  sold  in  1906  on  a  3.95  basis 

1909  3.98  to  4.02  basis 

1910  4.05  (asked) 

1911  4.10   4.15 

1912  4.20 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire  and  Rhode  Island. 


[  639  ] 


PENNSYLVANIA   COMPANY 
Series  "E"  Trust  Mortgage  4%  Certificates 

Dated  May  1,  1912  Maturing  May  1,  1952 

Interest  payable  May  1  and  November  1  at  Pliiladeli>liia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Issued  $10,000,000  Outstanding  $10,000,000 

Security:  The  same  as  for  Series  "A"  (see  page  637).    They  are  secured  by  a  deposit  with  the  trustee 

of  $10,000,000  7%  guaranteed  special  stock  of  the  Pittsburgh,  Fort  Wayne  &  Chicago  Rail- 
way Company. 

Sinking  fund:     The  company  agrees  to  provide  an  annual  sinking  fund  after  1917  of  an  amount  equal  to  1% 
of  the  certificates  outstanding  to  be  ajjplied  to  their  purchase  at  not  exceeding  par  and  interest. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

For  history,  see  page  636. 


PENNSYLVANIA   COMPANY 
Collateral  Loan  3HS 

Dated  November  1,  1901  Maturing  November  1,  1916 

Interest  payable  May  1  and  November  1  at  New  York  and  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $20,000,000  Outstanding  $5,326,000 

Provisions  of      Of  the  total  amount  authorized,  $6,060,000  are  outstanding  as  above,  and  the  balance, 
issue:  $14,674,000,  has  been  retired  by  the  sinking  fund. 

Security :  The  above  bonds  are  a  direct  obligation  of  the  Pennsylvania  Company  and  are  secured  by  a 

first  collateral  lieu  on  $15,000,000  Pittsburgh,  Cincinnati,  Chicago  &  St.  Louis  preferred  stock, 
$5,000,000  Baltimore  &  Ohio  preferred  stock  and  $5,000,000  Norfolk  &  Western  preferred 
stock. 

The  indenture  provides  that  the  company  may  withdraw  any  or  all  the  securities  deposited 
above  and  substitute  securities  of  an  appraised  value  equal  to  those  withdrawn. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the 
Pennsylvania  Railroad  Company  by  endorsement. 

Redemption:      The  above  bonds  are  redeemable  for  the  sinking  fund  at  i)ar  and  interest  on  November  1  of 
each  year  upon  one  month's  notice. 

Sinking  fund:     The  company  has  provided  an  annual  sinking  fund  of  $1,334,000  to  be  applied  to  the  pur- 
chase of  these  bonds  on  November  1  of  each  year  at  ])ar.    Bonds  will  be  drawn  by  lot.    Bonds 
so  pin-chascd  are  cancelled.    The  sinking  fund  will  retire  all  the  bonds  in  15  payments. 
[  640  ] 


Trustee:  Giraid  Trust  Company,  Philadelphia. 

For  history,  see  page  636. 

These  bonds  were  quoted  in  1909  on  a  3.90  basis 

sold  in  1910  3.88  to  4.30  basis. 

1911  3.87       4.15 

1912  4.00       4.20 

They  are  considered  a  legal  investment  for  savings  banks  in  New  Hampsliire. 


PENNSYLVANIA   COMPANY 

Collateral  Loan  4s 

Dated  April  2,  1906  Maturing  April  1,  1031 

Interest  payable  April  1  and  October  1  at  Girard  Trust  Company,  Philadelpliia. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $20,000,000 


Outstanding  $20,000,000 


Security: 


Redemption : 


Trustee: 


The  above  bonds  are  a  direct  obligation  of  the  Pennsylvania  Company,  and  were  secured  on 
February  1,  1912,  by  a  deposit  with  the  trustee  of  $12,500,000  common  and  $10,900,000  pre- 
ferred stocks  of  the  Pittsburgh,  Cincinnati,  Cliicago  &  St.  Louis  Railway  Company,  $4,000,000 
Vandalia  Railroad  Company  stock  and  $1,000,000  Pittsburgh,  Youngstown  &  Ashtabula 
Railway  Company  stock. 

The  indenture  provides  that  the  company  may  withdraw  any  or  all  the  securities  deposited 
above  and  substitute  therefor  securities  of  an  equal  appraised  value.  The  company  agrees 
to  keep  the  value  (market)  equal  to  120%  of  the  total  par  value  of  the  bonds  outstanding. 

The  above  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by 
the  Pennsylvania  Railroad  Company  by  endorsement. 

These  bonds  are  redeemable  at  par  and  interest  on  Aju-il  1,  1921,  or  any  interest  date  there- 
after upon  90  days'  notice. 

Girard  Trust  Company,  Philadelphia. 


For  history,  see  page  636. 

These  bonds  sold  in  1907  on  a  4.15  to  5.15  basis 

1908  3.98   4.70 

1909  4.00   4.15 

1910  4.10   4.40 

1911  4.10   4.20 

1912  4.12   4.30 

They  are  considered  a  legal  investment  for  savings  banks  in  New  Hami)shire  and  Rhode  Island. 


[  641 


PENNSYLVANIA   COMPANY 
French  Franc  Loan  3H%  Certificates 

Dated  June  15,  1906  Maturing  June  15,  1921 

Interest  payable  June  15  and  December  15  at  Credit  Lyonnaise,  Paris,  France. 

Bonds  of  500  and  2,500  francs. 
Authorized  250,000,000  francs  Outstanding  250,000,000  francs 

Security:  These  bonds  are  a  direct  obligation  of  the  Pennsylvania  Company,  and  are  secured  by  a 

deposit  with  the  trustee  of  marketable  securities. 

They  have  been    GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Pennsyl- 
vania Railroad  Company  by  endorsement. 

Redemption:      The  above  bonds  are  redeemable  at  par  and  interest  on  or  after  June  15,  1918. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

For  history,  see  page  636. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


PITTSBURGH,  YOUNGSTOWN   &  ASHTABULA  RAILWAY 

First  General  Mortgage  Series  "A"  Gold  4s 

Dated  June  1,  1908  Maturing  June  1,  1948 

Interest  payable  June  1  and  December  1  at  Farmers'  Loan  and  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  .$15,000,000  Outstanding  $1,965,000 

Per  mile  .    .  14,250 

Provisions  of      Of  the  total  amount  authorized,  $1,965,000  are  outstanding  as  above,  $35,000  have  been 
issue:  retired  by  the  sinking  fund,  $1,562,000  have  been  reserved  to  retire  the  company's  First 

Consolidated  Mortgage  5s  of  1927,  and  the  balance,  $11,438,000,  has  been  reserved  for 
improvements,  extensions  and  other  lawful  purposes. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  137.54  miles  of  the  company's  road, 

together  with  buildings,  equipment,  franchises,  incomes  and  profits.  They  are  secured  by  a 
first  mortgage  on  14.6  miles  from  Homewood  to  New  Castle,  Pa.,  and  by  a  second  mortgage 
on  122.9  miles  covered  by  the  first  lien  of  the  company's  First  Consolidated  Mortgage  5s  of 
1927  (which  see). 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the 
Pennsylvania  Railroad  Company,  and  also  by  the  Pennsylvania  Company  under  the  terms 
of  its  lease. 

[  642  ] 


Sinking  fund:  The  company  provides  a  sinking  fund  equal  to  1%  of  the  bonds  outstanding  to  purchase 
and  cancel  these  bonds  at  not  exceeding  par  and  interest.  If  not  purchasable  at  this  price 
in  any  year,  the  fund  is  to  revert  to  the  company. 

Trustee:  Central  Trust  Company,  New  York. 

The  Pittsburgh,  Youngstown  &  Ashtabula  Railway  Company  was  incorporated  January  8,  190(5, 
under  the  laws  of  Ohio  and  Pennsylvania,  as  a  consolidation  of  the  Pittsburgh,  Youngstown  &  Ash- 
tabula Railroad  and  the  New  Castle  &  Beaver  Valley  Railroad  Companies.  The  property  of  the 
company  is  leased  for  999  years,  from  July  1,  1910,  to  the  Pennsylvania  Company,  at  a  rental  equal 
to  organization  expenses,  interest  on  funded  debt,  and  7%  on  the  preferred  and  common  stocks  of 
the  company.  The  entire  capital  stock  of  the  Pennsylvania  Company  is  owned  by  the  Pennsylvania 
Railroad  Company. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


PITTSBURGH,  YOUNGSTOWN  &  ASHTABULA  RAILROAD 
First  Consolidated  Mortgage  Currency  5s 

Dated  November  1,  1887  Maturing  November  1,  1927 

Interest  payable  May  1  and  November  1  at  Farmers'  Loan  and  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $4,000,000  Outstanding  $1,562,000 

Per  mile  .    .  12,700 

Provisions  of      Of  the  total  amount  authorized,  $1,562,000  are  outstanding  as  above,  $638,000  have  been 
issue:  cancelled,  and  the  balance,  $1,800,000,  will  not  be  issued. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road,  122.9  miles,  in- 

cluding the  line  from  Ashtabula  Harbor,  O.,  to  Kenwood,  Pa.,  98.7  miles,  together  with  equip- 
ment, appurtenances  and  future  acquisitions. 

They  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Pennsyl- 
vania Company  under  the  terms  of  its  lease. 

Equity:  These  bonds  are  prior  in  lien  to  the  company's  First  General  Mortgage  Gold  4s  of  1948,  a 

sufficient  number  of  which  have  been  reserved  to  retire  this  issue  at  maturity. 

Sinking  fund:  The  company  provides  an  annual  sinking  fund  equal  to  1%  of  the  bonds  outstanding  for  their 
purchase  at  not  exceeding  par  and  interest.  Bonds  so  purchasable  are  to  be  cancelled,  and 
if,  in  any  year,  they  are  not  procurable  at  par  and  interest,  the  fund  shall  revert  to  the  treasury 
of  the  company. 

Trustee:  Farmers'  Loan  and  Trust  Company,  New  York. 

The  Pittsburgh,  Youngstown  &  Ashtabula  Railroad  Company  was  incorporated  July  "i^l,  1887,  as 
a  consolidation  of  the  Ashtabula  &  Pittsburgh  Railway,  the  Alliance,  Niles  &  Ashtabula  Railroad, 
the  Lawrence  &  New  Brighton  Railroad  Companies.  Its  property  was  leased  from  August  1,  1887, 
to  the  Pennsylvania  Company.    In  1906  it  was  consolidated  with  the  New  Castle  &  Beaver  Valley 

[  643  ] 


Railroad  Company,  forming  the  Pittsburgh,  Yoimgstown  &  Ashtabula  Railway  Company.     The 
latter  was  leased  to  the  Pennsylvania  Company  from  year  to  year  from  January  16,  1906. 

These  bonds  sold  in  1902  on  a  3.75  to  4.25  basis. 

1904  3.85       4.05 

1905  3.90 

1906  3.98       4.05 

1909  4.20 

1910  4.25 

1911  4.35  (bid) 
December,  1912  4.55  (bid) 

They  ;irc  considered  ii  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode  Island. 


ERIE   &  PITTSBURGH  RAILROAD 
General  Mortgage  sJ^s 

Dated  July  1,  1890  Maturing  July  1,  1910 

Interest  payable  January  1  and  July  1  at  Union  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  regislcrable  as  to  principal. 

Authorized  $4,500,000  Outstanding  $4,125,000 

Ter  mile  .    .  49,700 

Provisions  of      Of  the  total  amount  authorized,  $4,125,000  are  outstanding  as  above,  anil  the  balance,  $375,000, 
issue:  has  been  retired  by  the  sinking  fund. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Girard  to  New 

Castle,  Pa.,  and  branches,  totalling  82.97  miles,  including  water  lots  in  the  harbor  of  Erie, 
docks,  wharf;  also  all  other  lands,  buildings,  rolling  stock,  now  owned  or  hereafter  acquired, 
together  with  all  franchises,  income  and  profits. 

These  bonds  have  been  GUARANTEED    as    to    PRINCIPAL    and    INTEREST    by    the 

Pennsylvania  Railroad  Company  by  endorsement. 

Sinking  fund:  The  company  agreed  to  set  apart,  beginning  July  1,  1891,  and  amiually  thereafter,  an  amount 
equal  to  1%  of  the  bonds  outstanding  to  purchase  the  same  at  not  exceeding  par  and  interest. 
If  not  so  purchasable  in  any  year,  the  fund  is  to  revert  to  the  treasury  of  the  company. 

Trustee:  Union  Trust  Company,  New  York. 

The  Erie  &  Pittsburgh  Railroad  Company  was  chartered  April  1,  1858,  and  its  road  was  opened 
for  traffic  in  1865.  Its  property  was  leased  by  the  Pennsylvania  Railroad  Company  for  999  years 
from  March  1,  1870,  at  a  rental  equivalent  to  7%  on  its  stock  and  the  interest  on  its  bonds.  This 
lease  was  later  transferred  to  the  Pennsylvania  Company,  whose  entire  capital  stock  is  owned  by 
the  Pennsylvania  Railroad  Company. 

[  644  ] 


These  bonds  sold  in  1904  on  a  3.55  basis 


1905 

3.60 

1906 

3.70 

1907 

3.95 

1909 

3.90  (bid) 

1910 

4.05 

1911 

4.05 

1912 

4.00 

Tlicy  are  considered  a  legal  investment  for  savings  banks  in  New  England  except  in  Vermont. 


TOLEDO,  WALHONDING   VALLEY   &   OHIO   RAILROAD 

First  Mortgage  4s  and  4I/2S 

(i)  Series  "A,"  4HS 

Dated  July  1,  1891  Maturing  July  1,  1931 

Interest  payable  January  1  and  July  1  at  Farmers'  Loan  and  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Outstanding  $1,500,000 

(2)  Series  "B,"  4J/^s 

Dated  July  1,  1891  Maturing  July  1,  1933 

Interest  payable  January  1  and  July  1  at  Farmers'  Loan  and  Trust  (!ompany,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Outstanding  $978,000 

(3)  Series  "C,"  4s 

Dated  July  1,  1891  Maturing  September  1,  1942 

Interest  payable  March  1  and  Sejitember  1  at  Farmers'  Loan  and  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Outstanding  $1,401,000 

Total  authorized  $4,000,000  Total  outstanding  $3,879,000 

Per  mile    ....  16,650 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  road,  234.26  miles,  in- 

cluding the  lands,  buildings,  equipment,  franchises,  incomes,  profits  and  all  other  property 
now  owned  and  hereafter  acquired. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Penn- 
sylvania Company  by  endorsement. 

Sinking  fund:     The  company  provides  out  of  its  net  earnings  annually  from  October  1,  1892,  a  sum  equal  to 
1%  of  the  outstanding  bonds  for  their  purchase  at  not  exceeding  par  and  interest.    If,  in  any 
year,  bonds  are  not  so  purchasable,  the  fund  shall  revert  to  the  treasury  of  the  company. 
[  645  ] 


Trustee:  Farmers'  Loan  and  Trust  Company,  New  York. 

The  Toledo,  Walhonding  Valley  &  Ohio  Railroad  Company  was  chartered  May  22,  1891, 
under  the  laws  of  Ohio  as  a  consolidation  of  the  Northern  Ohio  Railway  and  the  Walhonding  Valley 
Railroad  Companies.  Its  property  is  operated  under  lease  by  the  Pennsylvania  Company  at  a  rental 
equal  to  its  net  earnings.  In  July,  1911,  it  was  consolidated  with  the  Cleveland  &  Marietta  Rail- 
way Company  into  the  Toledo,  Columbus  &  Ohio  River  Railroad  Company.  The  property  will 
continue  to  be  operated  by  the  Pennsylvania  Company. 

Series  "A"  of  1931  sold  in  1907  on  a  4.30  to  4.70  basis 

1909  4.32  (bid) 

1910  4.50 

1911  4.40  (bid) 

1912  4.30   4.35 

Series  "C"  of  1942  was  quoted  July,  1912,  on  a  4.25  basis. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode 
Island. 


CLEVELAND    &  PITTSBURGH   RAILROAD 

General  Mortgage  Sinking  Fund  3>^s  and  41^3 

(i)  Series  "A,"  43/^s 

Dated  December  1,  1891  Maturing  January  1,  1942 

Interest  payable  January  1  and  July  1  at  Winslow,  Lanier  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Outstanding  $3,000,000 

(2)  Series  "B,"  4^8 

Dated  December  1,  1891  Maturing  October  1,  1942 

Interest  payable  April  1  and  October  1  at  Winslow,  Lanier  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Outstanding  $1,561,000 

(3)  Series  "B,"  31^3 

Dated  December  1,  1891  Maturing  October  1,  1942 

Interest  payable  April  1  and  October  1  at  Winslow,  Lanier  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Outstanding  $429,000 
[  646  ] 


(4)  Series  "C,"  s^s 

Dated  December  1,  1891  Maturing  November  1,  1948 

Interest  payable  May  1  and  November  1  at  Winslow,  Lanier  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Outstanding  $2,788,000 

(5)  Series  "D,"  sJ^s 

Dated  December  1,  1891  Maturing  August  1,  1950 

Interest  payable  February  1  and  August  1  at  Winslow,  Lanier  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Outstanding  $1,604,000 
Total  authorized  $10,000,000  Total  outstanding  $9,382,000 

Per  mile    ....  46,000 

Provisions  of      Of  the  total  amount  authorized,  $9,382,000  are  outstanding  as  above,  and  the  balance,  $618,000, 
issue:  has  been  retired  by  the  sinking  fund. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  205.50  miles  of  the  company's  road, 

including  the  line  between  Rochester,  Pa.,  and  Cleveland,  O.,  together  with  terminal  property 
in  Allegheny  and  Pittsburg,  docks,  buildings,  equipment,  future  acquisitions,  franchises, 
income  and  profits. 

These  bonds  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the 
Pennsylvania  Railroad  Company  by  endorsement. 

Sinking  fund:  The  company  has  provided,  beginning  January  1,  1893,  and  annually  thereafter,  a  sinking 
fund  equal  to  1%  of  the  bonds  outstanding,  for  their  purchase  at  not  exceeding  par  and  in- 
terest. If,  in  any  year,  bonds  are  not  so  purchasable,  the  fund  shall  revert  into  tlie  treasury 
of  the  company. 

Trustee:  Farmers'  Loan  and  Trust  Company,  New  York. 

The  Cleveland  &  Pittsburgh  Railroad  Company  was  chartered  in  Ohio  in  March,  1836,  and  in 
Pennsylvania  in  April,  1850.  The  road  was  open  for  traffic  in  1852.  Its  property  was  leased  to  the 
Pennsylvania  Railroad  Company  for  999  years  from  December  1,  1871.  This  lease  was  transferred 
to  the  Pennsylvania  Company  in  April,  1873.  The  rental  is  7%  on  the  capital  stock,  interest  on  the 
bonds,  sinking  fund  and  $10,000  a  year  for  organization  expenses. 

Series  "A"  of  1942  sold  in  1903  on  a  4.05  basis 

1909  3.95 

1910  4.15 

1911  4.05 
December,  1912          4.35 

Series  "B"  (43^s)  of  1942  sold  in  1909  on  a  4.00  basis 

1910  4.15 

1911  4.10  (bid) 
December,  1912  4.35 

Series  "C"  of  1948  was  quoted  July,  1912,  on  a  3.95  basis  (bid). 
[  647  ] 


Series  "D"  of  1950  sold  in  1904  ( 

an  a  3.67  basis 

1908 

4.00 

1909 

3.75  (bid) 

1910 

3.92  (bid) 

1911 

3.95  (bid) 

December,  1912 

4.00  (bid) 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


CLEVELAND    &   MARIETTA  RAILWAY 

First  Mortgage  Sinking  Fund  4>^s 

Dated  May  1,  1895  Maturing  May  1,  1935 

Interest  payable  May  1  and  November  1  at  Farmers'  Loan  and  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $2,000,000  Outstanding  $1,250,000 

Per  mile  .    .  12,000 

The  unissued    balance  of    these   bonds,  $750,000,  has  been  reserved  for  extensions  and 
equipment. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Marietta  to 

Canal  Dover,  O.,  103.68  miles,  together  with  buildings,  equipment  and  future  acquisitions. 

They  have  been  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Pennsyl- 
vania Company  by  endorsement. 

Sinking  fund:  The  company  agrees  to  set  aside  on  July  1  in  each  year  a  sum  equal  to  1%  of  the  bonds  out- 
standing to  be  applied  to  their  piu-chase  and  cancellation  at  not  exceeding  par  and  interest. 
If  bonds  are  not  so  purchasable  in  any  year,  the  fund  shall  revert  to  the  treasury  of  the  company. 

Trustee:  Farmers'  Loan  and  Trust  Company,  New  York. 

The  Cleveland  &  Marietta  Railway  Company  was  incorporated  in  July,  1886.  In  June,  1911, 
it  was  consolidated,  with  the  Toledo,  Walhonding  Valley  &  Ohio  Railroad  Company,  into  the 
Toledo,  Columbus  &  Ohio  River  Railroad  Company,  which  is  leased  by  the  Pennsylvania  Company. 

These  bonds  sold  in  1905  on  a  3.92  basis 

1909  4.38 

1910  4.45  (bid) 

1911  4.25  (bid) 
December,  1912  4.38  (bid) 

They  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode  Island. 


I  (i48  ] 


CINCINNATI,  LEBANON   &  NORTHERN   RAILWAY 

First  Mortgage  5s 

Dated  January  2,  1886  Maturing  January  2,  1916 

Interest  payable  January  1  and  July  1  at  Central  Trust  &  Safe  Deposit  Company,  Cincinnati. 

Coupon  bonds  of  $1,000. 

Authorized  $200,000  Outstanding  $200,000 

Per  mile  .    .         5,300 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  line  from  Cincinnati  to 

Dodds  Station,  O.,  and  branch,  totalling  37.55  miles,  together  with  lands,  buildings,  equip- 
ment and  future  acquisitions. 

Equity:  These  bonds  are  prior  in  lien  to  the  Cincinnati,  Lebanon  &  Northern  Railway  First  Con- 

solidated 4s  of  1942,  a  sufficient  number  of  which  have  been  reserved  to  provide  for  the  re- 
turement  of  this  issue  at  maturity. 

The  Pennsylvania  Company  owns  practically  the  entire  capital  stock  of  the  above  company. 
The  Pennsylvania  Company,  in  turn,  is  entirely  owned  by  the  Pennsylvania  Railroad  Company. 

These  bonds  were  quoted  December,  1912,  on  a  4.70  basis  (bid). 

They  are  considered  a  legal  investment  for  savings  banks  in  Maine,  and  New  Hampshire. 


CINCINNATI,  LEBANON    &   NORTHERN   RAILWAY 
First  Consolidated  Mortgage  4s 

Dated  November  1,  1902  Maturing  November  1,  1942 

Interest  payable  May  1  and  November  1  at  Farmers'  Loan  and  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $1,500,000  Outstanding  $1,230,000 

Per  mile  .    .  24,100 

Provisions  of      Of  the  total  amount  authorized,  $1,255,000  are  outstanding  as  above,  $200,000  have  been 
issue:  reserved  to  retire  the  company's  First  5s  of  1916,  and  the  balance,  $70,000,  has  been  retired 

by  the  sinking  fund. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  on  51.49  miles  of  the  company's  road, 

togetlier  with  all  property  pertaining  to  it.  It  is  secured  by  a  first  mortgage  on  13.94  miles 
from  Middletown  to  Middletown  Junction,  O.,  and  by  a  second  mortgage  on  the  property 
covered  by  the  first  Hen  of  the  company's  First  5s  of  1916  (which  see). 

These  bonds  have  been    GUARANTEED   as   to   PRINCIPAL    and   INTEREST  by  the 

Pennsylvania  Company  by  endorsement. 
[  649  ] 


Sinking  fund :  Beginning  November  1,  1903,  and  annually  thereafter,  a  sinking  fund  equal  to  1%  of  the 
bonds  outstanding  is  provided  for  their  purchase  at  par  and  interest.  If  not  so  purchasable 
in  anj'  year,  the  fund  will  revert  to  the  treasury  of  the  company. 

Trustee :  Central  Trust  &  Safe  Deposit  Company,  Cincinnati,  0. 

For  history,  see  description  of  the  company's  First  Mortgage  5s  of  1916. 

These  bonds  sold  in  1909  on  a  3.95  basis 
1910  4.25 

December,  1912  4.62  (bid) 

They  are  considered  a  legal  investment  for  savings  banks  in  iNIaine. 


CLEVELAND,  AKRON   &   COLUMBUS  RAILWAY 
General  Mortgage  5s 

Dated  March  1,  1887  Maturing  March  1,  1927 

Interest  payable  March  1  and  September  1  at  Winslow,  Lanier  &  Company,  New  York. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal. 

Authorized  $1,800,000  Outstanding  $1,800,000 

Per  mile  .    .  9,150 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  195.82  miles  of  the  company's  road, 

including  the  line  from  Hudson  to  Columbus,  O.;  together  with  lands,  buildings,  equipment 
and  future  acquisitions. 

These  bonds  were  ASSUMED  by  the  Cleveland,  Akron  &  Cincinnati  Railway  Company. 

Equity:  These  bonds  are  prior  in  lien  to  the  company's  First  Consolidated  4s  of  1940,  a  sufficient 

number  of  which  has  been  reserved  to  retire  this  issue  at  maturity. 

The  Cleveland,  Akron  &  Columbus  Railway  Company  was  chartered  in  Ohio  in  1886.  In  1911 
it  was  consolidated  into  the  Cleveland,  Akron  &  Cincinnati  Railway  Company,  which  assumed  the 
above  bonds.  Almost  the  entire  capital  stock  of  the  latter  is  owned  by  the  Pennsylvania  Company, 
which,  in  turn,  is  entirely  owned  by  the  Pennsylvania  Railroad  Company. 

The.se  bonds  were  quoted  in  December,  1912,  on  a  4.55  basis  (bid). 

They  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode  Island. 


[  650  ] 


CLEVELAND,  AKRON    &   COLUMBUS   RAILWAY 
First  Consolidated  Mortgage  4s 

Dated  August  1,  1900  Maturing  August  1,  1940 

Interest  payable  February  1  and  August  1  at  Wiuslow,  Lanier  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  i)rincipal. 

Authorized  $4,000,000  Outstanding  $1,616,000 

Per  mile  .    .  8,250 

Provisions  of      Of  the  total  amount  authorized,  $1,616,000  are  outstanding  as  above,  $1,800,000  have  been 
issue:  reserved  to  retire  the  General  5s  of  1927,  $184,000  have  been  retired  by  the  sinking  fund,  and 

$400,000  have  been  reserved  for  improvements  and  extensions. 

Security:  The  above  bonds  are  secured  by  a  second  mortgage  on  the  property  covered  by  the  General 

5s  of  1927  (which  see). 

These  bonds  were  ASSUMED  by  the  Cleveland,  Akron  &  Cincinnati  Railway  Company. 

Bonds  numbered  778    to   1,800   inclusive  are   GUARANTEED    as  to   PRINCIPAL  and 
INTEREST  by  the  Pennsylvania  Company  by  endorsement. 

Sinking  fund:  Beginning  October  1,  1901,  and  annually  thereafter,  a  sinking  fund  equal  to  1%  of  the  bonds 
outstanding  is  provided  for  their  purchase  at  par  and  interest.  If  not  so  purchasable  from 
year  to  year,  the  fund  will  revert  in  each  instance  to  the  treasury  of  the  company. 

Trustee:  Commercial  Trust  Company,  Philadelphia. 

For  history,  see  page  650. 

These  bonds  were  quoted  December,  1912,  on  a  4.70  basis  (bid). 

They  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire  and  Rhode  Island. 


WHEELING   TERMINAL   RAILWAY 

First  Mortgage  4s 

Dated  August  1,  1900  Maturing  August  1,  1940 

Interest  payable  February  1  and  August  1  at  Winslow,  Lanier  &  Company,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $2,000,000  Outstanding  $1,566,000 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  property  of  the  company,  including 

9.6  miles  of  road  extending  from  Martin's  Ferry,  O.,  to  Benwood,  W.  Va. 

These  bonds  are    GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Pennsyl- 
vania Company  by  endorsement. 

[  651  ] 


Sinking  fund:  Beginning  October  1,  1901,  and  annually  thereafter,  a  sinking  fund  equal  to  1%  of  the  bonds 
outstanding  is  provided  for  their  purchase  at  not  exceeding  par  and  interest.  If  not  so  pur- 
chasable in  any  year,  the  fund  will  revert  to  the  treasury  of  the  company. 

Trustee:  Commercial  Trust  Company,  Philadelphia. 

Tlie  Wheeling  Terminal  Railway  Company  was  incorporated  in  June,  1900,  as  the  successor 
to  the  Wheeling  Bridge  &  Terminal  Railway  Comjiany,  whicli  had  been  sold  under  foreclosure  in 
May,  1900.  It  owns  a  bridge  at  Wheeling,  West  Virginia,  and  terminal  facilities  to  connecting  rail- 
roads.   Its  entire  capital  stock  is  owned  by  the  Pennsylvania  Company. 

Tiiese  bond.s  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hampshire. 


CINCINNATI   &   MUSKINGUM   VALLEY  RAILROAD 
First  Mortgage  4s 

Dated  August  1,  1898  Maturing  August  1,  1948 

Interest  payable  February  1  and  August  1  at  Farmers'  Loan  and  Trust  Company,  New  York. 

Coupon  bonds  of  $1,000,  reglsterable  as  to  principal. 

Authorized  $2,000,000  Outstanding  $1,741,000 

Per  mile  .    .  11,750 

Provisions  of      Of  the  total  amount  authorized,  $1,741,000  are  outstanding  as  above,  $9,000  have  been 
issue :  retired  by  the  sinking  fund  and  $250,000  have  been  reserved  for  future  needs. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  148.46  miles  of  the  company's  road  from 

Trinway  to  Morrow,  O.,  including  lands,  buildings,  equipment  and  futiu-e  acquisitions. 

They  have  been  ASSUMED  by  the  Cleveland,  Akron  &  Cincinnati  Railway  Company,  and 
are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Pennsylvania  Company 
by  endorsement. 

Sinking  fund:  Beginning  October  1,  1899,  and  annually  thereafter,  a  sinking  fund  equal  to  1%  of  the  bonds 
outstanding  is  provided  for  their  purchase  at  not  exceeding  par  and  interest.  If  not  so  pur- 
chasable in  any  year,  the  fund  is  to  revert  to  the  treasury  of  the  company. 

Trustee:  Farmers'  Loan  and  Trust  Company,  New  York. 

In  1911  the  property  of  the  above  company  was  consolidated  with  the  Cleveland,  Akron  & 
Columbus  Railway  Company  into  the  Cleveland,  Akron  &  Cincinnati  Railway  Company.  Practi- 
cally all  the  capital  stock  of  the  latter  is  owned  by  the  Pennsylvania  Company. 

These  bonds  were  quoted  December,  1912,  on  a  4.87  basis  (bid). 

They  are  considered  a  legal  investment  for  .savings  banks  in  Maine,  New  Ilaniijshirc,  ('(miioclicnl  and 
Rhode  Island. 


[  652  ] 


ROCK  ISLAND  SYSTEM 


ROCK  ISLAND  SYSTEM 


HISTORY 


The  history  of  the  Rock  Island  System  is  one  of  the  most  complex  in  railroad  annals.  It  com- 
prises no  less  than  two  holding  companies  and  one  operating  company,  the  latter  contributing  the 
earnings  of  all  three.  The  principal  holding  company  of  the  system  is  The  Rock  Island  Company, 
which  was  organized  under  the  laws  of  the  State  of  New  Jersey  on  July  31,  1902,  "to  acquire  by  pur- 
chase or  otherwise,  and  to  hold  as  investment,  any  bonds  or  other  securities,  or  any  shares  of  capital 
stock  created  or  issued  by  corporations  or  associations  in  any  state  or  territory,  etc."  This  company 
took  over  the  entire  outstanding  stock  of  the  Chicago,  Rock  Island  &  Pacific  Railroad  Company, 
the  second  of  the  two  holding  companies  in  the  system,  having  issued  in  exchange  therefor  its  own 
outstanding  preferred  and  common  stock. 

The  Chicago,  Rock  Island  &  Pacific  Railroad  Company  was  incorporated  in  Iowa  on  the  same 
day  that  The  Rock  Island  Company  was  incorporated  in  New  Jersey.  It  acquired  almost  the  entire 
capital  stock  of  the  Chicago,  Rock  Island  &  Pacific  Railway  Company,  which  it  has  always  held,  and 
in  which  from  time. to  time  it  has  increased  its  investment.  The  latter  company  is  the  operating 
comjjany  referred  to  above. 

The  stockholders  of  the  Chicago,  Rock  Island  &  Pacific  Railway  Company  were  offered  in  ex- 
change for  each  $100  of  their  stock,  $100  in  the  Chicago,  Rock  Island  &  Pacific  Railroad  Company 
Four  Per  Cent  Collateral  Trust  Bonds  of  2002  (to  be  secured  by  a  pledge  with  the  trustee  of  an  equal 
amount  of  stock  of  the  Railway),  also  $70  in  the  preferred  stock  and  $100  in  the  common  stock  of  The 
Rock  Island  Company  (New  Jersey).  At  the  close  of  the  Railroad  Company's  fiscal  year  ending 
June  30,  1912,  it  held  in  its  treasury  $71,353,500  stock  of  the  $75,000,000  of  the  Chicago,  Rock 
Island  &  Pacific  Railway. 

The  early  history  of  this  system  was,  indeed,  an  ambitious  one,  and  it  was  evidently  the  plan 
of  its  creators  to  develop  one  of  the  largest,  if  not  the  largest  system  in  the  United  States,  by  acquir- 
ing from  time  to  time  control  in  the  capital  stocks  of  the  railroads  which  cover  the  South  and  West. 
In  1904  the  Railway  Company  acquired  nearly  absolute  control  of  the  Chicago  &  Alton  Railroad. 
On  the  other  hand,  the  Railroad  Company  was  gradually  acquiring  a  control  of  the  St.  Louis  & 
San  Francisco  Railroad,  and  by  1906  had  acquired  its  entire  common  stock.  The  St.  Louis  &  San 
Francisco  Railroad,  in  turn,  controlled  at  that  time  majority  interests  in  the  Chicago  &  Eastern 
Illinois,  the  Evansville  &  Terre  Haute,  and  the  Evansville  &  Indianapolis  Railroad  Companies. 
All  these  companies  controlled  by  the  Rock  Island  System  operated  practically  15,000  miles  of  rail- 
road, reaching  into  seventeen  states  and  territories  in  the  West,  with  lines  extending  from  Chicago 
to  New  Orleans,  and  westward  to  Denver,  Colorado,  and  El  Paso,  Texas,  and  covering  one  of  the 
richest  sections  of  the  entire  country. 

This  attempt  to  amalgamate  the  railways  of  the  Southwest  proved  a  very  unprofitable  venture. 
The  "Rock  Island"  never  received  dividends  from  the  "Frisco"  stock  which  it  held,  and  when  it 
was  decided  to  sell  its  control  in  the  latter  company,  the  sale  was  carried  out  at  a  severe  loss.  This 
happened  late  in  1909,  and  the  control  of  the  St.  Louis  &  San  Francisco,  carrying  with  it  the  con- 
trol of  the  other  above-mentioned  companies,  passed  back  into  the  hands  of  B.  F.  Yoakum  and 
associates. 

Nor  was  this  the  only  sale,  for  in  1908  the  Chicago,  Rock  Island  &  Pacific  Railway  turned  over 

[  655  ] 


all  its  extensive  holdings  in  the  Chicago  &  Alton  Railroad  except  7,700  shares  of  preferred  stock, 
to  the  Toledo,  St.  Louis  &  Western  Railroad  Company,  receiving  therefor  that  company's  Gold 
Bonds  of  1917. 

The  present  system  has  thus  reduced  itself  to  The  Rock  Island  Company,  with  its  $150,000,000 
capital  stock,  of  which  $140,740,282  is  outstanding,  both  common  and  preferred;  the  Chicago, 
Rock  Island  &  Pacific  Railroad  Company,  with  a  capital  stock  (entirely  owned  by  the  former)  of 
$145,000,000;  and  the  Chicago,  Rock  Island  &  Pacific  Railway  with  its*  $75,000,000  capital  stock, 
nearly  95%  of  which  is  owned  by  the  Railroad  Company.  The  5%  balance  of  Railway  stock,  which 
is  not  controlled  by  the  Railroad,  is  held  by  the  public. 

The  Chicago,  Rock  Island  &  Pacific  Railway  Company  was  incorporated  Jime  4,  1880,  by  the 
consolidation  of  the  old  Chicago,  Rock  Island  &  Pacific  Railroad  and  various  proprietary  companies. 
Since  that  time  the  company  has  absorbed  many  small  lines,  including  the  Chicago,  Kansas  &  Ne- 
braska Railway  purchased  at  foreclosure  sale  in  April,  1891,  the  Gowrie  &  Northwestern  Railway 
in  January,  1901,  the  Enid  &  Anadarko  Railway  in  1902,  the  St.  Louis,  Kansas  City  &  Colorado 
Railroad  in  1903,  and  the  St.  Louis,  Kansas  City  &  Colorado  Extension  in  1906.  On  December  31, 
1910,  the  Chicago,  Rock  Island  &  El  Paso  Railway  Company  owning  a  line  from  Bravo,  Texas,  to 
Santa  Rosa,  New  Mexico,  conveyed  its  property  to  the  Chicago,  Rock  Island  &  Pacific  Railway 
Company,  the  latter  assuming  its  funded  obligations. 

Owing  to  certain  mortgage  provisions,  the  securities  of  certain  companies  whose  properties 
are  owned  in  fee  by  the  Railway  Company  have  to  remain  alive.  Among  these  are  the  Burlington, 
Cedar  Rapids  &  Northern  Railway  Company,  which  was  deeded  to  the  Railway  in  1903,  with  the 
guarantee  of  6%  on  its  outstanding  capital  stock;  the  Tucumcari  &  Memphis  Railway  Company, 
whose  entire  capital  stock  is  owned  by  the  Chicago,  Rock  Island  &  El  Paso  Railway  Company; 
the  Choctaw,  Oklahoma  &  Gulf  Railroad  Company,  which  is  leased  to  the  Railway  Company  for 
999  years  from  March  24,  1904;  the  Rock  Island  &  Peoria  Railway  Company,  which  was  deeded 
in  1903  with  the  6%  guarantee  on  its  outstanding  capital  stock;  the  Rock  Island,  Arkansas  &  Lou- 
isiana Railroad ;  and  the  Consolidated  Indiana  Coal  Company,  which  owns  22,000  acres  of  coal  land 
in  Sullivan  County,  Indiana,  and  Dallas  County,  Jowa. 

Besides  this,  the  Chicago,  Rock  Island  &  Pacific  Railway  Company  has  varied  interests  in  other 
companies.  It  owns  one-half  the  capital  stock  of  the  Peoria  Railway  Terminal  Company,  which  has 
acquired  all  the  property  of  the  Peoria  &  Pekin  Terminal  Railway.  It  owns  one-fifth  of  the  capital 
stock  of  the  Iowa  Transfer  Railway  Company,  whose  yard  at  Des  Moines,  Iowa,  has  been  completed 
and  put  into  operation.  It  controls  a  proportion  equal  to  the  other  proprietary  companies  in  the 
capital  stock  of  the  Chicago  LTnion  Transfer  Company  and  of  the  Terminal  Railroad  Association  of 
St.  Louis.  The  entire  cai)ital  stocks  and  funded  debt  of  the  Chicago,  Rock  Island  &  El  Paso  Railway 
Com]iany,  and  the  Cliicago,  Rock  Island  &  (iulf  Railway  Company  are  owned  by  the  Chicago,  Rock 
Island  &  Pacific  Railroad  Company. 

There  are  also  joint  interests  which  the  latter  has  in  the  Rock  Island-Frisco  Terminal  Railway, 
which  owns  new  freight  depots  and  yards  in  St.  Louis.  The  joint  use  of  these  terminals  with  the  Rail- 
way Company  has  been  gi-anted  to  the  Chicago  &  Eastern  Illinois  Railroad.  A  joint  interest  in  the 
Memphis  Railroad  Terminal  Company,  with  nine  other  companies,  is  held  by  the  Chicago,  Rock 
Island  &  Pacific  Railway  Company. 

Early  in  1911  the  Chicago,  Rock  Island  &  Pacific  Railway  Company  acquired  the  control  of  the 
St.  Paid  &  Des  Moines  Railroad  Company.  This  company  formerly  operated  121  miles  of  road  from 
Des  Moines,  to  Mason  City,  Iowa.  A  company,  known  as  the  St.  Paul,  Kansas  City  Short  Line 
Railroad  Company,  was  chartered  in  February,  1911,  under  the  laws  of  the  State  of  Iowa  with  an 
authorized  capital  stock  of  $45,000,000  to  purchase  from  the  Railway  Company  all  the  outstanding 
securities  of  the  St.  Paul  &  Des  Moines  Railroad.  All  the  capital  stock  of  the  St.  Paul,  Kansas  City 
Short  Line  Railroad  which  has  been  issued  is  owned  by  the  Railway  Company.  The  Short  Line  Rail- 
road is  constructing  at  present  a  new  line  to  Allerton,  Iowa,  a  point  on  the  Railway  Company's  main 
line  to  Kansas  City.  It  is  exi)ected  that  this  line  will  be  completed  about  Sc])lniil)er  1,  1912,  and 
will  then  afford  the  Rock  Island  the  shortest  route  by  43  miles  between  St.  Paul  and  Kansas  City. 

[  056  ] 


PROPERTY 

The  lines  of  the  operating  company  of  the  Rock  Ishmd  System,  the  Chicago,  Rock  Ishxnd  & 
Pacific  Railway,  extend  from  Chicago  to  St.  Paul,  Sioux  Falls,  Omaha,  Denver  and  Pueblo,  and 
southerly  from  Kansas  City  to  El  Paso,  Dallas  and  Galveston,  Texas,  with  branches  to  Memphis, 
Tennessee,  Little  Rock,  Arkansas,  and  Eunice,  Louisiana. 

Of  the  total  miles  operated  during  the  fiscal  year  ending  June  30,  1912,  8,042  miles,  7,197  are 
owned  in  fee;  225  represent  mileage  of  leased  lines,  and  620  those  operated  under  trackage  rights. 
To  show  the  extent  of  the  system,  the  mileage  extends  into  fourteen  States  of  the  Middle  and  South 
West,  the  bulk  of  its  trackage  lying  in  Iowa,  Missouri,  Kansas,  Oklahoma  and  Arkansas. 

CAPITALIZATION 

To  reach  an  approximate  capitalization  of  the  Rock  Island  System  as  a  whole,  the  capital 
stock  of  The  Rock  Island  Company,  together  with  the  small  balance  of  Railway  Company  stock 
not  held  by  the  Railroad  Company  has  been  considered.  The  funded  debt  in  the  table  below  includes 
the  funded  obligations,  both  real  and  assumed,  of  the  Railroad  Company  and  the  Railway  Company. 
Rentals  are  those  of  the  operating  company  and  have  been  capitalized  at  5%,  and  to  procure  the  net 
capitalization,  securities  owned  by  the  operating  company  as  shown  on  its  balance  sheet  have  been 
deducted. 

Based  on  the  annual  reports  of  the  three  companies  for  the  fiscal  year  ending  June  30,  1912, 
the  capitalization  of  the  Rock  Island  System  stood  as  follows: 

The  Rock  Island  Company 

Preferred  stock   .    .    .^ $54,000,000 

Common  stock 96,000,000 

C.  R.  I.  &  P.  Ry.  Co. 

Balance  outstanding      3,646,500 

Total  capital  stock $153,646,500 

Funded  debt 

C.  R.  I.  &  P.  R.  R.  Co $78,853,500 

C.  R.  I.  &  R.  Ry.  Co 251,189,000 

Nominal  capital $483,689,600 

Rentals  capitalized  at  5% 30,895,000 

Gross  capitalization $514,584,600 

Securities  owned 9,695,546 

Net  capitalization $504,889,054 

Net  capital  per  mile  operated      $62,828 

Average  miles  operated 8,035.84 

Net  income  to  net  capital 3.9% 

Fixed  charges  to  net  income  (Railway)      80.6% 

Fixed  charges  to  net  income  (System) 97.4% 

Margin  of  safety  (Railway)      19.4% 

Margin  of  safety  (System") 2.6% 

As  will  be  seen  above,  the  net  capital  of  the  system  per  mile  of  road  operated  was  $62,828. 
Compared  with  two  other  properties  situated  in  similar  territory,  the  Chicago,  Burlington  &  Quincy 

[  657  ] 


Railroad  and  the  Chicago,  Milwaukee  &  St.  Paul  Railway,  this  figure  is  rather  high.  The  Burling- 
ton's net  capital  per  mile  for  the  fiscal  year  ending  June  30,  1912,  was  but  slightly  over  $32,000, 
while  that  of  the  St.  Paul  was  $49,181.  Comparing  the  net  capitalization  of  the  three  properties  for 
the  past  decade,  we  find  the  same  relative  disadvantage  in  the  case  of  the  Rock  Island.  The  Burling- 
ton's ten-year  average  was  $30,670,  the  St.  Paid's  was  but  $36,450,  while  the  average  figure  of  the 
Rock  Island  System  was  $56,000. 

A  comparison  of  the  ratio  of  total  net  income  to  the  net  capital  of  these  three  properties  shows 
rather  conclusively  that  the  Rock  Island  System  is  not  earning  a  sufficient  amount  to  carry  safely 
such  a  large  capital  burden.  During  the  fiscal  year  of  1912  the  Rock  Island  earned  but  4%  on  its 
entire  net  capital.  On  the  other  hand,  the  Burlington  was  able  to  show  net  earnings  of  9.7%  on  its 
net  capital,  while  the  St.  Paul  earned  approximately  6.2%  in  spite  of  its  unfortunate  year.  The 
average  net  income  earned  on  net  capital  for  the  ten  years  ending  1912  of  the  three  systems  is  as 
follows: 

Rock  Island  (Ry.)      4.2% 

Burlington 9.1 

St.  Paul 8.9 

The  scant  factor  of  safety  shown  for  the  charges  of  the  system  reveals  by  what  a  close  mar- 
gin the  Railway  Company  in  1912  met  the  burdens  of  the  three  companies.  The  margin  of  the 
Railway  Company  proper,  however,  was  nearly  20%  as  compared  with  26%  of  1911.  This  figure 
cannot  be  considered  safe  by  any  means.  Nor  does  the  decline  as  compared  with  1911  appear  en- 
couraging, yet  it  shows  more  exactly  what  the  operating  company  is  doing  independent  of  the 
other  two. 

During  the  fiscal  year  of  1912  the  capital  account  of  the  Rock  Island  System  was  somewhat 
changed  by  the  sale  of  $20,000,000  Twenty- Year  5%  Debentures  of  the  Chicago,  Rock  Island  &  Pacific 
Railway.  These  were  offered  on  a  5.20  basis.  The  company  has  agreed  not  to  sell  within  the  next 
two  years  any  additional  debentures  or  any  direct  or  guaranteed  bonds. 


CHARACTER   OF  TRAFFIC 

Nearly  two-thirds  of  the  total  trafiic  of  the  Railway  is  freight.  Tapping  the  grain  centers  of 
the  West  and  South,  the  Rock  Island  is  necessarily  greatly  dependent  upon  the  success  of  the  crops. 
It  will  be  seen  in  the  table  below  that  25%  of  the  freight  business  of  the  company  was  the  trans- 
portation of  agricultural  products,  30%  of  the  products  of  mines,  over  one-half  of  which  is  represented 
by  bituminous  coal  alone,  and  10%  of  lumber  products.  Following  are  the  ratios  of  commodity 
statistics  (revenue  freight  only)  for  the  years  1907  to  1912  inclusive: 


Products  of 

1912 

1911 

1910 

1909 

1908 

1907 

Agriculture 

25.5% 

25.8% 

22.1% 

25.0% 

26.4% 

25.4% 

Animals    .    .    . 

7.6 

7.7 

7.1 

7.7 

7.9 

7.2 

Mines  .... 

31.6 

29.5 

31.9 

29.3 

27.8 

30.4 

Forests     .    .    . 

10.4 

11.6 

12.3 

12.5 

12.2 

11.8 

Manufactures 

17.9 

18.4 

19.5 

18.1 

17.9 

17.5 

Miscellaneous 

7.0 

7.0 

7.1 

7.4 

7.8 

7.7 

100.0%  100.0%  100.0%  100.0%  100.0%  100.0% 

In  order  to  get  a  clearer  idea  of  the  freight  business  of  the  Rock  Island  and  how  it  is  handled, 
a  few  of  the  important  traffic  statistics  of  the  Railway  are  given  on  page  659  for  the  six  years,  ending 
June  30,  1912: 

I  658  J 


Year 

Freight 
density 

Train 
load 
ton.s 

1907        .     . 

.       550,268 

266 

1908      ... 

...       504,384 

255 

1909      ... 

...      518,394 

264 

1910      ... 

,    .    .    .      567,792 

257 

1911      ... 

,    .    .    .      587,890 

270 

1912      ... 

.    .    .       572,340 

278 

Freight  Rate 

earnings  per  ton 

per  mile 

$40,663,972  $.0095 

37,899,356  .0094 

39,158,053  .0094 

42,218,880  .0092 

43,368,395  .0092 

41,156,835  .0089 

It  will  be  seen  by  the  foregoing  that,  with  the  exception  of  1908,  the  freight  density  —  number  of 
tons  of  revenue  freight  carried  one  mile  per  mile  of  road  —  increased  substantially;  and  that  in  general 
it  was  handled  with  increased  efficiency  during  the  period  in  question,  the  train  load  in  1908  being 
but  255  and  in  1912  reaching  278.  It  was  due  more  than  anything  else  to  this  economy  of  handling 
commodities  that  caused  the  steady  increase  in  freight  earnings  in  the  face  of  steady  declining  rates 
per  ton  per  mile.  As  compared  with  the  Burlington  and  even  the  St.  Paul,  it  would  seem  that  this 
handling  of  freight  coidd  be  greatly  improved  in  the  future.  For  example,  the  Burlington  reports 
an  average  freight  density  for  the  past  ten  years  of  734,136  per  year,  and  carried  an  average  of 
361  tons  of  revenue  freight  in  every  train  load.  The  St.  Paul's  average  for  the  period,  though  not  so 
good  as  that  of  the  Burlington,  was  much  better  than  the  Rock  Island  showing,  as  follows: 


St.  Paul 

Rock  Island  (Ry.) 


Freight 

Train  load 

density 

tons 

660,807 

271 

513,365 

248 

Average  number 

Passenger 

Rate  per 

passengers 

eammgs 

passenger 

per  tram  mile 

per  mile 

44.54 

$16,449,765 

$.0227 

54.20 

16,693,110 

.0189 

58.05 

17,883,380 

.0188 

54.31 

19,378,174 

.0191 

54.91 

20,240,528 

.0200 

49.21 

18,609,408 

.0198 

During  the  fiscal  year  of  1912  29%  of  the  gross  business  of  the  Railway  Company  was  pas- 
senger, passenger  earnings  being  that  proportion  of  the  total.  Given  below  are  some  of  the  salient 
passenger  statistics  of  the  Railway  based  on  its  annual  reports  for  the  year  1907  to  1912  inclusive. 

Year  Passenger 

density 

1907 93,215 

1908 110,670 

1909 118,694 

1910 126,360 

1911 125,844 

1912 116,900 

The  passenger  density  of  the  Railway  —  the  number  of  passengers  carried  one  mile  for  every 
mile  operated  —  increased  steadily  up  to  1910,  declining  since  then.  In  every  year  except  1912 
passenger  earnings  increased  in  spite  of  a  decline  in  the  average  rate  per  passenger  per  mile  during 
1908,  1909  and  1910.  A  comparison  of  the  average  passenger  density  and  the  average  rate  per 
passengerper  mile  of  the  Rock  Island,  Burlington  and  the  St.  Paul  properties  for  the  decade  ending 
June  30,  1912,  follows: 

Average  Average  rate 

passenger  per  passenger 

density  per  mile 

Rock  Island  (Ry.) 100,239  $.0207 

Burlington 105,320  .0197 

St.  Paul 80,754  .0209 


[  659  ] 


EARNINGS 

The  operating  company  of  the  system,  the  Chicago,  Rock  Island  &  Pacific  Railway,  reports 
the  following  gross  and  net  earnings  for  the  six  years  ending  1912  as  follows: 


Year 

Average  miles 

Gross 

Per 

Net 

Per 

operated 

earnings 

mile 

earnmgs 

mile 

1907      .    . 

.     .     .        7,780 

$60,238,420 

$7,728 

$19,194,277 

$2,484 

1908      .    . 

.    ,    .      7,970 

58,484,196 

7,338 

16,155,449 

2,028 

1909      .    . 

.    .    ,      8,026 

61,184,887 

7,623 

18,671,391 

2,326 

1910      .    . 

.    .    .      8,043 

66,220,578 

8,233 

18,151,210 

2,257 

1911      .    . 

.    .    .      8,026 

68,487,473 

8,533 

19,431,790 

2,421 

1912      .    , 

.    .    .      8,036 

64,712,853 

8,053 

17,953,359 

2,234 

Both  gross  and  net  earnings  show  the  effect  of  the  general  business  depression  of  1908  and  1909. 
In  1910  gross  earnings  increased  over  those  of  the  previous  year  over  $5,000,000,  or  8%.  Corre- 
spondingly, operating  expenses  in  that  year  increased  over  those  of  the  previous  year  nearly  $5,600,- 
000,  or  13%,  due  to  large  increases  in  amounts  spent  for  both  maintenance  of  way  and  equipment  and 
in  cost  of  conducting  transportation.  The  latter,  far  more  significant  than  charges  for  upkeep,  can 
be  explained  almost  entirely  by  increased  cost  of  fuel  and  a  materially  larger  wage  account.  In  1911 
the  earnings  were  rather  better  than  in  1910.  With  a  total  increase  in  gross  earnings  of  nearly 
$2,300,000,  or  3.4%,  and  an  increase  in  operating  expenses  of  less  than  $1,000,000,  or  2%,  the  net 
earnings  of  the  company  showed  an  increase  of  nearly  $1,300,000,  or  7%.  The  fiscal  year  of  1912 
was  relatively  a  poor  one  from  an  earning  standpoint,  gross  revenue  declining  over  $3,750,000,  or 
5.5%o  and  net,  1,475,000,  or  7.6%. 

MAINTENANCE 

It  cannot  be  said  that  the  Railway  Company  has  been  lavish  in  its  nuiintenance  charges.  As 
compared  with  the  Burlington,  its  maintenance  record  does  not  make  a  very  favorable  showing. 
To  be  sure,  the  Burlington  is  one  of  the  best  maintained  roads  in  the  West,  but  even  comparing  the 
Rock  Island  with  the  St.  Paul,  the  showing  is  none  too  good.  Below  are  given  the  amounts  spent  per 
mile  of  road  for  maintenance  by  the  Railway  Company  for  the  years  1907  to  1912  inclusive,  and 
also  the  average  amount  spent  each  year  for  the  past  decade  by  the  Railway  Company  and  by  its 
immediate  competitors,  the  Burlington  and  the  Missouri  Pacific. 

Year  Maintenance  Total 

Way  Equipment 

1907   $1,175      $895      $2,070 

1908  1,044  939  1,983 

1909  1,128  936  2,064 

1910  1,327  1,051  2,378 

1911  1,213  1,166  2,379 

1912  1,057  1,033  2,090 

Ten  years 

Rock  Island $1,068  $905  $1,973 

Burlington 1,374  1,379  2,753 

St.  Paul 951  944  1,895 

It  is  interesting,  too,  to  note  the  proportions  of  gross  which  each  of  the  three  properties  in  ques- 
tion spent  upon  maintenance.  Following  is  a  table  which  shows  this  ratio  for  the  three,  for  the  six 
years  ending  June  30,  1912: 

1  660  ] 


1912  1911  1910  1909  1908  1907 

Rock  Island 25.9%  27.9%  28.9%  27.1%  27.0%  26.9% 

Burlington 32.1  30.6  34.9  33.7  34.7  35.4 

St.  Paul 29.3  25.7  24.9  24.3  24.1  23.8 

It  will  be  seen  by  the  foregoing  that,  while  the  ratio  of  the  Rock  Island  has  remained  practically 
stationary,  the  ratio  of  the  St.  Paul  has  shown  a  marked  increase  from  year  to  year,  and  also  that 
neither  of  the  two  has  spent  proportionately  anywhere  near  as  much  as  the  Burlington. 

ADDITIONS   AND   BETTERMENTS 

In  accordance  with  the  order  of  the  Interstate  Commerce  Commission  which  requires  each 
railroad  to  state  in  its  balance  sheet  the  additions  to  property  made  since  June  30,  1907,  which  have 
been  charged  to  income,  the  Chicago,  Rock  Island  &  Pacific  Railway  reports  in  its  balance  sheet  of 
June  30,  1912,  but  $64,370.  Since  June  30,  1907,  the  road  and  equipment  account  of  the  company 
has  been  increased  $31,610,477,  and  with  the  exception  of  the  amount  charged  to  income  as  above, 
all  of  this  item  has  been  charged  to  capital. 

DIVIDENDS 

There  have  been  no  dividends  paid  on  the  stock  of  The  Rock  Island  Company  since  1905. 
One  per  cent  quarterly  was  paid  on  its  preferred  stock  from  February  1,  1903,  to  November  1,  1905, 
inclusive.  The  operating  company  (Chicago,  Rock  Island  &  Pacific  Railway)  has  paid  dividends 
continuously  from  1891  as  follows: 

Year  Rate  Year  Rate 

1891 3%  1904 8M% 

1892-4 31^  1905 614 

1895-6 2  1906 6 

1897 ^V2  1907-09 5^ 

1898 4  1910 5 

1899-1901      4K  1911 5M 

1902 5  1912 5 

1903 614 

It  should  be  borne  in  mind  that  the  only  income  which  The  Rock  Island  Company  has  is  what 
may  be  derived  from  dividends  declared  upon  the  stock  of  the  Railway  Company.  During  1911 
the  Railway  Company  disbursed  5\i%  which  was  just  sufficient  to  care  for  the  interest  charges  on 
the  funded  indebtedness  of  the  Railroad  Company,  expenses  and  taxes,  and  to  wipe  out  the  1910 
deficits  of  the  Railroad  Company  and  The  Rock  Island  Company  of  $309,470.  In  order  that  the 
5%  dividend  rate  to  which  the  Rock  Island  preferred  stock  is  entitled  from  1910  to  1916  may  be 
paid,  the  Railroad  Company  will  be  required  to  disburse  8.4%  on  its  own  capital  stock,  which  would 
mean  that  it  would  have  to  earn  rising  10%,  a  thing  which  was  done  in  but  one  year,  1907.  Al- 
though the  Railway  Company  earned  6.33%  on  its  capital  stock  in  1910,  7.27%  in  1911  and  5.1% 
in  1912,  there  seems  to  be  very  little  likelihood  that  the  company  will  have  increased  its  corporate 
surplus  sufficiently  to  declare  dividends  on  The  Rock  Island  Company  preferred  stock  for  some  time. 

The  corporate  surpluses  of  the  three  companies  were  reported  to  be  as  follows  for  the  fiscal 
year  ending  June  30,  1912: 

The  Rock  Island  Company $75,415 

Chicago,  Rock  Island  &  Pacific  Railroad  Company 290,910 

Chicago,  Rock  Island  &  Pacific  Railway  Company 14,598,084 

[  661  ] 


The  surplus  of  the  Railway  Company,  figured  on  the  total  capital  stock  of  the  Rock  Island 
System,  is  equal  to  9.4%. 

STATISTICS 

Following  are  given  the  capitalization,  earnings  and  traffic  statistics  of  the  Rock  Island  System, 
based  on  the  average  miles  operated,  for  the  year  1900,  and  for  the  years  1905  to  1912  inclusive. 

In  the  capitalization  figures  the  capital  stocks  of  The  Rock  Island  Company  and  the  Rail- 
way Company  (not  held  by  the  Railroad  Company)  are  included  under  the  heading  of  "Capital 
stock."  The  "Funded  Debt"  includes  the  obligations  of  both  the  Railroad  and  the  Railway  Com- 
panies. The  earning  figures  are  those  of  the  operating  company,  with  the  exception  of  the  item  of 
Fixed  charges,  which  includes  besides  the  total  cor]3orate  deductions  of  the  Railway  Company,  the 
interest  obligations  and  ex^jenses  and  taxes  of  the  Railroad  Company  and  The  Rock  Island  Com- 
pany.    The  traffic  statistics  given  are  those  of  the  operating  company. 


1  ()(!^2 


ROCK   ISLAND   SYSTEM 


Fiscal 

Capital 

Funded 

Rentals 

Gross 

Owned  by 

Net 

Average 

ICxtra 

year 

stock 

debt 

capital 

company 

capiUil 

miles 
operated 

3,636 

track 

1900 

$13,751 

$18,449 

$4,687 

$36,887 

$1,799 

$35,088 

248 

1905 

21,442 

35,552 

2,987 

59,981 

5,357 

54,624 

7,232 

288 

1906 

21,482 

36,938 

2,767 

61,187 

5,605 

55,582 

7,218 

288 

1907 

19,914 

36,330 

3,074 

59,318 

5,130 

54,188 

7,780 

289 

1908 

19,423 

36,683 

3,877 

59,983 

5,020 

54,963 

7,970 

289 

1909 

19,264 

36,042 

3,907 

59,213 

4,966 

54,247 

8,026 

289 

1910 

19,121 

38,133 

3.847 

61,101 

1,337 

59,764 

8,045 

472 

1911 

19,150 

38,494 

4,248 

61,892 

1,411 

60,481 

8,026 

470 

1912 

19,120 

41,070 

3,844 

64,034 

1.206 

62,828 

8,036 

470 

Fiscal 

Gross 

Maintenance          Transportation 

Net              Other 

Total 

FLxed  charges 

year 

operating 

and  general          operating        income 

net 

Rail- 

System (iu- 

revenue 

Way           Equipment       expense              r 
$1,066              $647           $2,160 

evenue 

income 
$2,549 

way           ck 

$1,322 

ding  railway) 

1900 

$6,229 

$2,356           $193 

1905 

6,091 

804 

797 

2,693 

1,797             211 

2,008 

1,353 

$1,862 

1906 

7,098 

1,011 

923 

2.924 

2,240 

43 

2,383 

1,441 

1,952 

1907 

7,729 

1,175 

895 

3,175 

2,484 

22 

2,606 

1,438 

1,915 

1908 

7,338 

1,044 

939 

3,327 

2,028 

46 

2,174 

1,577 

2.041 

1909 

7,623 

1,128 

936 

3,233 

2,326 

48 

2,474 

1,703 

2,164 

1910 

8,233 

1,327             1,051 

3,598 

2,257 

96 

2,453 

1,859 

2,318 

1911 

8,533 

1,213             1,166 

3,732 

2,421 

96 

2.617 

1,939 

2,356 

1912 

8,052 

1,057             1,033 

3,728 

2,234             233 

2,467 

1,988 

2,400 

Fiscal 

Surplus  avail-           Dividends              Surplus                 Dividend 

Surplu 

5  avail-         Di 

'idends  on 

Surplus 

year 

able  for 

(Railway)           (Railway)          Rai 

way  stock 

able  for  divi-            Rock  Island 

(System) 

dividends 

of 

outstanding           dends  on  Rock             Preferred 

Railway 

$1,227 

Island  Co.  stock 

1900 

$550 

$677 

1905 

654 

646 

9 

$40 

$106 

$269 

$163* 

1906 

942 

648 

294 

42 

389 

08 

321 

1907 

1,168 

529 

039 

34 

657 

657 

1908 

597 

493 

104 

31 

102 

102 

1909 

771 

489 

282 

29 

281 

281 

1910 

594 

465 

129 

25 

110 

110 

1911 

678 

490 

188 

23 

238 

238 

1912 

479 

466 

13 

22 

45 

45 

Fiscal 

Operating 

Total 

Conducting 

Fixed 

Gross 

Net 

Per  cent  earned  on 

Freight 

year 

expenses 

mainte- 

transpor- 

charges 

earnings 

incom 

to  all 

to  gross 

nance  to 

tation  to 

to  gross 

to  gross 

to  net 

Railway 

Rocklslan 

1        traflSc 

earnings 

gross 

gross 

earnings 

capital 

capita 

stock 

preferred 

earnings 

earnings 

7.2% 

stock 

1900 

62.18% 

28.10% 

34.08% 

21.3% 

16.8% 

5.9% 

70% 

1905 

70.50 

26.29 

44.21 

30.5 

10.1 

3.7 

6.3 

1.4% 

67 

1906 

68.44 

27.25 

41.19 

27.5 

11.6 

4.3 

9.0 

5.2 

68 

1907 

68.11 

26.88 

41.23 

24.8 

13.0 

4.8 

12.1 

9.4 

68 

1908 

72.38 

27.03 

45.35 

28.0 

12.2 

3.9 

6.3 

1.5 

65 

1909 

69.48 

27.07 

42.11 

28.5 

12.8 

4.5 

8.3 

4.2 

64 

1910 

72.59 

28.89 

43.70 

28.2 

13.4 

4.1 

6.4 

1.6 

64 

1911 

71.63 

27.89 

43.74 

27.7 

13.7 

4.3 

7.3 

3.5 

63 

1912 

72.26 

25.96 

46.30 

30.0 

12.5 

3.9 

5.1 

.7 

64 

*  Deficit. 

[  66t 

] 

ROCK  ISLAND   SYSTEM 


Fiscal 

Train 

Maintenance 

Coi 

ducting 

Train 

Kate  per 

mile 

Freight 

Train 

Passenger 

year 

mile 

per 

revenne 

ransportation 

mile 

density 

load 

freight 

earnings 

train  mile 

per  revenue 

earnings 

Per 

Per 

revenue 

and 

(gross) 

Way 

Equipment 

train  mile 

(net) 

passenger 

ton 

tons 

company 

1900 

$1.46           $ 

251 

$.153 

$.509 

$.556 

$.0206 

$.0099 

440,121 

177 

19,070 

1905 

65 

217 

.215 

727 

.485 

.0218 

.0094 

438,531 

228 

40,942 

1906 

76 

254 

.238 

723 

.554 

.0215 

.0093 

514,767 

245 

41,369 

1907 

86 

282 

.215 

775 

.593 

.0223 

.0094 

550,268 

266 

45,095 

1908 

82 

258 

.233 

826 

.503 

.0189 

.0094 

504,384 

255 

43,642 

1909 

90 

281 

.233 

806 

.580 

.0188 

.0094 

518,394 

264 

41,625 

1910 

85 

299 

.236 

809 

.507 

.0191 

.0092 

567,792 

257 

44,178 

1911 

94 

276 

.265 

850 

.557 

.0200 

.0092 

587,890 

270 

46,668 

1912 

84 

244 

.237 

857 

.514 

.0198 

.0089 

572,340 

278 

46,902 

[  664  ] 


BOND  DESCRIPTIONS 


Following  are  descriptions  of  the  bond  issues  of  the  Rock  Island  Sys- 
tem, both  direct  and  assumed,  together  with  the  bases  upon  which 
they  have  sold  during  the  decade  ending  December  31,  1912: 


CHICAGO,  ROCK  ISLAND    &  PACIFIC   RAILROAD 
Collateral  Trust  4s 

Dated  August  1,  1902  Maturing  November  1,  2002 

Interest  payable  May  1  and  November  1  at  the  First  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $5,000  and  multiples. 

Coupon  and  registered  bonds  interchangeable. 


Authorized  $75,000,000 


Outstanding  $71,353,500 


Security:  These  bonds  are  secured  by  a  deposit  with  the  trustee  of  the  capital  stock  of  the  Chicago, 

Rock  Island  &  Pacific  Railway  Company  now  owned  or  hereafter  to  be  acquired  by  the  Chicago, 
Rock  Island  &  Pacific  Railroad  Company.  On  June  30,  1912,  $71,353,500  of  the  $75,000,000 
Railway  Company  stock  had  been  acquired  and  deposited  with  the  trustee. 

The  capital  stock  of  the  Chicago,  Rock  Island  &  Pacific  Railway  Company  cannot  be  in- 
creased beyond  the  $75,000,000  now  authorized  until  all  the  bonds  of  this  issue  are  paid,  and 
bonds  may  be  issued  only  to  the  face  amount  of  the  stock  deposited  under  this  mortgage. 


Trustee: 


Central  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  4.55  to  5.00  basis 


1903 

4.50 

5.80 

1904 

4.85 

6.00 

1905 

4.70 

5.15 

1906 

4.90 

5.35 

1907 

5.20 

7.00 

1908 

5.05 

6.50 

1909 

4.70 

5.30 

1910 

4.75 

6.00 

1911 

5.20 

5.60 

1912 

5.45 

6.00 

CHICAGO,  ROCK  ISLAND    &  PACIFIC   RAILROAD 

First  Mortgage  6s 

Dated  May  1,  1877  Maturing  July  1,  1917 

Interest  payable  January  1  and  July  1  at  the  First  National  Bank,  New  York. 


Coupon  bonds  of  $1,000,  exchangeable  for  registered  bonds. 
Registered  bonds  of  $5,000. 


Authorized  $12,500,000 


Outstanding  $12,500,000 
Per  mile  .    .  16,340 


Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  765.39  miles  of  road,  including  the  line 

from  Chicago  to  Council  Bluffs,  la.,  500.46  miles,  and  from  Davenport  to  Knoxville,  la., 

144.12  miles.     In  the  mileage  between  Chicago  and  Council  Bluffs  is  included  the  bridge 

across  the  Mississippi  River  at  Rock  Island,  111.    This  bridge  is  owned  by  the  Government, 

[  666  ] 


but  is  leased  in  perpetuity  to  the  company.    The  bonds  are  also  secured  by  a  mortgage  on 
equipment,  appurtenances  and  future  acquisitions. 

These  bonds  were  ASSUMED  by  the  Chicago,  Rock  Island  &  Pacific  Railway  Company. 

Equity:  These  bonds  are  prior  in  lien  to  the  Refunding  4s  of  1934,  and  to  the  General  4s  of  1988,  a 

sufficient  number  of  which  are  reserved  to  retire  this  issue  at  maturity. 

Trustee:  United  States  Trust  Company,  New  York. 

These  bonds  sold  in  1902  on  a  3.27  to  4.05  basis 


1903 

3.50 

4.00 

1904 

3.15 

3.875 

1905 

3.35 

3.85 

1906 

3.70 

4.00 

1907 

3.87 

4.25 

1908 

3.80 

4.375 

1909 

3.87 

4.25 

1910 

4.00 

4.40 

1911 

4.10 

4.35 

1912 

4.05 

4.50 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


CHICAGO,  ROCK  ISLAND    &  PACIFIC   RAILWAY 

General  Mortgage  4s 

Dated  January  1,  1898  Maturing  January  1,  1988 

Interest  payable  January  1  and  July  1  at  the  First  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Registered  bonds  of  $1,000  and  $5,000. 

Authorized  $100,000,000  Outstanding  $61,581,000 

Per  mile  .    .  18,925 

Provisions  of      Although  the  amount  of  this  issue  was  authorized  $100,000,000,  the  limit  of  the  issue  was 
issue:  placed  at  $99,981,000  by  the  terms  of  the  Chicago,  Rock  Island  &  Pacific  Railway  Refunding 

Mortgage.  Beside  the  amount  outstanding  as  above,  $12,500,000  have  been  reserved  to 
retire  the  First  6s  of  1917,  $17,900,000  are  issuable  for  additions  and  improvements  at  the 
rate  of  $1,000,000  per  year,  and  $8,000,000  are  held  by  the  trustees  of  the  Refunding  Mortgage. 
Under  the  terms  of  the  Refunding  Mortgage,  all  of  the  General  Mortgage  bonds  issued  sub- 
sequent to  April  1,  1904,  are  to  be  acquired  and  deposited,  without  impairment  of  Uen,  with 
the  trustee  of  the  Refunding  Mortgage. 

Security:  The  above  bonds  are  secured  by  a  direct  mortgage  or  by  collateral  trust  upon  3,254.48  miles 

of  road;  upon  securities,  leaseholds,  trackage  rights  and  contracts,  terminals,  lands,  build- 
ings, appurtenances,  equipment  and  future  acquisitions.  They  are  secured  by  a  first  mortgage 
on  2,396.00  miles  of  road  including  the  line  from  South  Omaha,  Neb.,  to  Colorado  Springs, 
Colo.,  562.63  miles  and  from  Washington,  la.,  to  Terral,  Okla.,  643.75  miles;  in  effect  by  a 
first  mortgage  on  93.09  miles  of  road  extending  from  Terral  to  Fort  Worth,  Tex.  being  a 
[  667  ] 


first  collateral  Hen  on  $1,365,000  Chicago,  Rock  Island  &  Texas  First  Mortgage  Bonds  covering 
this  mileage;  by  a  second  mortgage  on  765.39  miles  of  road  which  are  covered  by  the  first 
mortgage  of  the  Chicago,  Rock  Island  &  Pacific  First  6s  of  1917;  and  by  a  first  lien  on  the 
leasehold  interest  of  the  company  in  the  Keokuk  &  Des  Moines  Railway  covering  162.31 
miles;  also  upon  trackage  rights  and  contracts  covering  341.50  miles. 

Equity:  The  above  bonds  are  subject  to  the  $12,500,000  Chicago,  Rock  Island  &  Pacific  Railroad 

First  6s  of  1917  (for  description  see  above).  They  are  prior  in  lien  to  the  Chicago,  Rock 
Island  &  Pacific  Railway  First  and  Refunding  4s  of  1934. 

Trustees:  Bankers  Trust  Company,  New  York,  and  Benjamin  Strong,  Jr. 

These  bonds  sold  in  1902  on  a  3.50  to  3.80  basis 


1903 

3.70 

4.05 

1904 

3.75 

3.95 

1905 

3.70 

3.85 

1906 

3.87 

4.05 

1907 

4.00 

4.55 

1908 

3.90 

4.25 

1909 

3.95 

4.05 

1910 

4.05 

4.25 

1911 

4.05 

4.20 

1912 

4.10 

4.35 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  England. 


CEDAR  RAPIDS,  IOWA  FALLS   &   NORTHWESTERN   RAILWAY 

First  Mortgage  5s 

Dated  June  23,  1881  Maturing  October  1,  1921 

Interest  payable  April  1  and  October  1  at  the  First  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $4,000,000  Outstanding  $1,905,000 

Per  mile  .    .  6,524 

Provisions  of      Of  the  $4,000,000  authorized,  $3,916,000  have  been  issued,  $2,011,000  of  which  have  been 
issue:  acquired  and  deposited,  without  impairment  of  the  lien,  with  the  trustee  of  the  Burlington, 

Cedar  Rapids  &  Northern  Railway  Company  Consolidated  First  Mortgage  in  lieu  of  bonds 
of  that  issue. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  the  company's  lines  from  Holland,  la., 

via  Dows,  to  Worthington,  Minn.,  182.64  miles,  and  from  Dows  via  Germania  to  Esterville,  la., 
108.87  miles,  totalling  291.51  miles;  also  on  appurtenances,  equipment  and  future  acquisitions. 

Trustee:  Central  Trust  Company,  New  York. 

The  Cedar  Rapids,  Iowa  Falls  &  Northwestern  Railway  Company  was  chartered  under  the  laws 
of  the  State  of  Iowa.  It  was  opened  for  business  in  December,  1880,  from  Holland  to  Clarion,  Iowa, 
a  distance  of  55  miles.    The  road  was  leased  in  perpetuity  by  the  Burlington,  Cedar  Rapids  &  North- 

[  668  ] 


ern  Railway  and  operated  as  the  Iowa  Falls  Division  of  that  line.  In  1900  these  two  roads  were 
merged  under  the  name  of  the  Burlington,  Cedar  Rapids  &  Northern  Railway,  and  in  1903  the 
latter  deeded  its  property  to  the  Chicago,  Rock  Island  &  Pacific  Railway  Company. 

The  above  bonds  sold  in  1905  on  a  4.05  basis 

1909  4.35  (bid) 

1910  4.30  to  4.35 

1911  4.43  (bid) 
December,  1912  4.70  (bid) 

The  above  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Connecti- 
cut and  Rhode  Island. 


BURLINGTON,  CEDAR   RAPIDS   &   NORTHERN   RAILWAY 
Consolidated  First  Mortgage  5s 

Dated  April  1,  1884  Maturing  April  1,  1934 

Interest  payable  April  1  and  October  1  at  First  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  exchangeable  for  registered  bonds. 

Registered  bonds  of  $5,000. 

Authorized  $19,405,000  Outstanding  $11,000,000 

Provisions  of      Although  these  bonds  were  authorized  at  the  rate  of  $15,000  per  mile  of  single  track  and 
issue:  $7,500  per  mile  additional  for  double  track,  the  Refunding  Mortgage  of  the  Chicago,  Rock 

Island  &  Pacific  limits  the  issue  to  $19,405,000,  as  above.  Of  this  amount,  beside  the 
$11,000,000  outstanding,  as  above,  $6,500,000  are  held  by  the  trustee  of  the  Refunding  Mort- 
gage and  $1,905,000  are  reserved  to  retire  the  Cedar  Rapids,  Iowa  Falls  &  Northwestern 
First  5s  of  1921. 

Security:  The  above  issue  is  secured  by  direct  mortgage  upon  1,301.48  miles  of  road,  appurtenances  and 

future  acquisitions.  They  are  secured  l)y  a  first  mortgage  on  997.63  miles  of  road  including 
the  company's  line  from  Lake  Park,  la.,  to  Watertown,  S.  D.,  a  distance  of  164.08  miles,  and 
from  Burlington  to  Plymouth  Junction,  la.,  a  distance  of  219.52  miles;  by  a  second  mortgage 
on  303.85  miles,  including  the  291.51  miles  covered  by  the  first  mortgage  of  the  Cedar  Rapids, 
Iowa  Falls  &  Northwestern  First  5s  (see  page  668),  and  on  the  Minnesota-Iowa  State  Line  cov- 
ered by  the  first  mortgage  of  the  MinneapoUs  &  St.  Louis  First  Guaranteed  7s  (see  page  671). 
They  are  also  secured  by  trackage  rights  covering  39  miles  of  road. 

Equity:  These  bonds  are  prior  in  lien  to  the  Chicago,  Rock  Island  &  Pacific  Railway  First  &  Refund- 

ing 4s  of  1934. 

Trustee:  The  Central  Trust  Company,  New  York. 

The  Burlington,  Cedar  Rapids  &  Northern  Railway  Company  was  organized  as  the  Burlington, 
Cedar  Rapids  &  Minnesota  Railroad  Company,  in  June,  1868,  and  was  completed  in  September, 
1873.  The  Burlington,  Cedar  Rapids  &  Minnesota,  upon  default  of  interest  on  its  bonds  due 
November  1,  1873,  was  placed  in  the  hands  of  a  receiver  by  whom  it  was  operated  until  July  1,  1876, 
when  the  present  company,  the  Burlington,  Cedar  Rapids  &  Northern  Railway,  was  organized, 
purchasing  the  road  and  property  of  the  former. 

[  669  ] 


The  Burlington,  Cedar  Rapids  &  Northern  Railway  was  leased  to  the  Chicago,  Rock  Island 
&  Pacific  Railway  for  999  years  from  June  1,  1902,  at  a  yearly  rental  amounting  to  6%  net  on  the 
capital  stock,  at  the  same  time  offering  to  purchase  the  outstanding  capital  stock  of  the  former  by 
issuing  in  exchange  therefor  share  for  share  of  its  own  capital  stock.  This  plan  was  consummated 
in  the  following  year,  subject  to  its  various  mortgages. 

These  bonds  sold  in  1902  on  a  3.65  to  3.85  basis 


1903 

3.80 

3.87 

1904 

3.75 

4.10 

1905 

3.75 

3.95 

1906 

3.87 

4.00 

1907 

4.00 

4.75 

1908 

3.95 

4.60 

1909 

3.95 

4.05 

1910 

4.05 

4.35 

1911 

4.15 

4.27 

1912 

4.20 

4.40 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Connecti- 
cut and  Rhode  Island. 


ROCK   ISLAND    &   PEORIA   RAILWAY 
Consolidated  First  Mortgage  6s 

Dated  July  1,  1885  Maturing  July  1,  1925 

Interest  payable  January  1  and  July  1  at  the  First  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  exchangeable  for  registered  bonds. 
Registered  bonds  of  $5,000. 

Authorized  $600,000  Outstanding  $450,000 

Per  mile  .    .         3,982 

Provisions  of      Under  the  terms  of  the  Chicago,  Rock  Island  &  Pacific  Railway  Refunding  Mortgage  this 
issue:  issue  is  limited  to  $450,000,  all  of  which  are  outstanding  as  above. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  112.86  miles  of  road,  including  the  line 

from  Rock  Island  to  Peoria,  111.,  90.49  miles.    They  are  further  secured  by  a  first  mortgage 
on  all  the  equipment  of  the  line  and  future  acquisitions. 

Ivpiity:  These  bonds  are  prior  in  lien  to  the  Chicago,  Rock  Island  &  Pacific  Railway  First  &  Refund- 

ing 4s  of  1934,  a  sufficient  number  of  which  have  been  reserved  to  retire  this  issue. 

Trustee:  Metropolitan  Trust  Company,  New  York. 

The  Rock  Island  &  Peoria  Railway  Company,  a  corporation  of  the  State  of  Illinois,  was  the 
reorganization  of  the  Peoria  &  Rock  Island  Railway  Company,  October  9,  1877.  The  former  was 
leased  for  999  years  from  June  1,  1902,  to  the  Chicago,  Rock  Island  &  Pacific  Railway  Company, 
the  lessee  assimiing  all  the  obligations  of  this  company,  and  agreeing  to  pay  dividends  on  its  capital 

1  G70  ] 


stock  at  the  rate  of  6%  per  annum.  Subject  to  the  above  mortgage,  the  property  of  the  Rock 
Island  &  Peoria  Railway  Company  was  purchased  by  the  Chicago,  Rock  Island  &  Pacific  Railway 
Company  in  1903. 

These  bonds  were  quoted  in  1909  on  a  4.68  basis  (bid) 

1910  4.95 

1911  5.47 
December,  1912           5.75 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine,  New  Hampshire,  Connecticut 
and  Rhode  Island. 


MINNEAPOLIS   &   ST.  LOUIS   RAILROAD 
First  Mortgage  Guaranteed  7s 


Dated  February  1,  1877 
Interest 


Security : 


Equity: 


Trustee: 


Maturing  June  1,  1927 
e  June  1  and  December  1  at  the  First  National  Bank,  New  York. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Outstanding  $150,000 
Per  mile  .    .       12,500 

The  above  bonds  are  secured  by  a  first  mortgage  on  12.34  miles  of  the  company's  road  be- 
tween Albert  Lea,  Minn.,  and  the  Iowa-Minnesota  State  Line. 

The  bonds  numbered  1101  to  1400  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST 
by  the  Burhngton,  Cedar  Rapids  &  Northern  Railway. 

The  above  bonds  are  prior  in  lien  to  the  Burhngton,  Cedar  Rapids  &  Northern  Railway  Con- 
solidated 5s  of  1934,  and  also  prior  to  the  Chicago,  Rock  Island  &  Pacific  Railway  Refund- 
ing 4s  of  1934. 

Farmers'  Loan  &  Trust  Company,  New  York. 


The  Minneapolis  &  St.  Louis  Railroad  Company  is  a  corporation  of  the  State  of  Minnesota  and 
was  leased  to  the  Burlington,  Cedar  Rapids  &  Northern  Railway  Company  for  999  years  on  the 
guarantee  of  $150,000  for  these  bonds.  When  the  bonds  are  paid  off,  the  road  becomes  the  property 
of  the  latter,  which  in  turn  had  conveyed  its  property  in  1903  to  the  Chicago,  Rock  Island  &  Pacific 
Railway  Company. 

These  bonds  sold  in  1902  on  a  3.95  to  4.30  basis 


1903 

4.00 

4.22 

1905 

4.35 

1907 

4.68 

1908 

4.75 

4.90 

1909 

4.30 

4.37 

1910 

4.30 

4.40 

1911 

4.37 

S  1912 

4.30 

The  bonds  numbered  1101  to  1400  are  considered  legal  for  savings  banks  in  Maine  and  New  Hampshire. 

[671  ] 


CHICAGO,  ROCK  ISLAND    &  PACIFIC   RAILWAY 
First  &  Refunding  Mortgage  4s 

Dated  April  1,  1904  Maturing  April  1,  1934 

Interest  payable  April  1  and  October  1  at  the  First  National  Bank,  New  York. 

Coupon  bonds  of  $500  and  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Registered  bonds  of  $500  and  $1,000. 

Coupon  and  registered  bonds  interchangeable. 


Authorized  $163,000,000 


Outstanding  $94,942,000 
Per  mile  .  16,250 


Provisions  of      The  balance  of  these  bonds,  authorized  but  not  issued,  is  issuable  as  follows:  $870,000  for 

issue:  future  acquisitions  and  property,  $48,713,000   for  refunding  underlying   liens,  $13,500,000 

for  acquisitions  of  bonds  of  other  companies  and  $4,975,000  for  additions  and  improvements 

to  existing  lines  at  not  exceeding  $2,500,000  for  each  calendar  year  beginning  January  1,  1904. 


Security: 


Trustees : 


The  above  bonds  are  secured  by  a  direct  mortgage  or  by  collateral  trust  on  5,840.80  miles  of 
road  and  upon  leaseholds  aggregating  1,129.7  miles,  together  with  securities,  trackage  rights, 
terminals  and  equipment  of  those  lines  and  future  acquisitions.  The  bonds  are  secured  by 
a  direct  first  mortgage  on  654.32  miles  of  road  including  the  lines  from  St.  Louis  to  Strasburg 
Junction,  Mo.,  and  from  Geary  to  Anadarko,  Okla.,  also  upon  terminal  property  at  St.  Paul, 
Minn.,  and  new  equipment  and  shops  at  East  Moline,  111.  The  bonds  are  further  secured  in 
effect  by  a  first  mortgage  on  517.66  miles  of  road,  including  the  fines  of  the  Chicago,  Rock 
Island  &  Gulf  Railway  Company,  365  miles,  and  those  of  the  Chicago,  Rock  Island  &  El  Paso 
Railway,  153  miles.  They  are  further  secured  by  a  second  mortgage  on  3,506.49  miles  of 
road  subject  to  the  Chicago,  Rock  Island  &  Pacific  General  4s  of  1988,  the  Burlington,  Cedar 
Rapids  &  Northern  Consolidated  5s  of  1934,  and  the  Rock  Island  &  Peoria  First  6s  of  1925 
(all  of  which  see).  The  bonds  are  secured  also  in  effect  by  a  second  mortgage  on  93  miles  of 
road  subject  to  the  First  Mortgage  Bonds  of  the  Chicago,  Rock  Island  &  Texas  Railway,  and 
by  a  third  mortgage  on  1,069.24  miles  of  road. 

The  company  agrees  in  its  mortgage  not  to  issue  any  additional  prior  hens  unless  the  same 
shall  be  pledged  with  the  trustee  of  this  issue,  nor  can  there  be  any  extensions  permitted 
while  any  of  the  bonds  of  this  issue  remain  outstanding. 

Central  Trust  Company,  New  York,  and  David  R.  Francis,  Esq. 

These  bonds  sold  in  1904  on  a  4.15  to  4.20  basis 


1905 

4.05 

4.30 

1906 

4.15 

4.55 

1907 

4.55 

5.40 

1908 

4.55 

5.15 

1909 

4.40 

4.70 

1910 

4.55 

5.00 

1911 

4.70 

4.90 

1912 

4.70 

5.00 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


[  672 


CHICAGO,  ROCK  ISLAND    &  PACIFIC   RAILWAY 

Choctaw,  Oklahoma  &  Gulf  Collateral  Trust  4s 

Dated  May  1,  1902  Maturing  annually  $1,494,000  each  May  1  to  May  1,  1918 

Interest  payable  May  1  and  November  1  at  the  First  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $24,000,000  Outstanding  $8,964,000 

Provisions  of      Of    the    total    amount    authorized,    $23,883,000    have    been   issued.     Series    "A"   to    "J" 
issue:  ($14,919,000)  have  been  cancelled. 

Security :  The  above  bonds  are  secured  by  a  first  lien  by  deposit  with  the  trustee  of  the  entire  $9,827,500 

common  stock  and  the  entire  $6,000,000  preferred  stock  of  the  Choctaw,  Oklahoma  &  Gulf 
Railroad.  It  is  provided  in  the  indenture  that  the  capital  stock  of  the  Choctaw,  Oklahoma 
&  Gulf  Railroad  shall  not  be  increased  unless  a  proportionate  amount  shall  be  delivered  to 
the  trustee  hereunder,  nor  can  the  railroad  create  any  mortgage  or  issue  any  bonds  under 
existing  mortgages  other  than  the  Consolidated  5s  of  1952. 

Redemption:      These  bonds  are  redeemable  at  101 J^  and  interest  on  any  interest  date  upon  60  days'  notice. 

Trustee:  Central  Trust  Company,  New  York. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


CHOCTAW,  OKLAHOMA   &   GULF   RAILROAD 
General  Mortgage  5s 

Dated  October  3,  1894  Maturing  October  1,  1919 

Interest  payable  January  1  and  July  1  at  the  First  National  Bank,  New  York,  or  at  the 

Girard  Trust  Co.,  Philadelphia. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 

Authorized  $5,500,000  Outstanding  $5,500,000 

Per  mile  .    .  15,670 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  350.57  miles  of  road,  from  the  Arkansas- 

Oklahoma  State  Line  to  Elk  City,  Okla.,  325.16  miles,  and  from  Tecumseh  to  Asher,  Okla., 
25.41  miles;  also  on  spurs  to  coal  mines,  coal  mining  property  of  the  company,  appurtenances, 
equipment  and  futm-e  acquisitions. 

These  bonds  have  been  ASSUMED  by  the  Chicago,  Rock  Island  &  Pacific  Railway  Company. 

A  sufficient  number  of  the  Chicago,  Rock  Island  &  Pacific  Railway  Refunding  4s  of  1934  have 
been  reserved  to  retire  this  issue  at  maturity,  also  the  company's  Consohdated  5s  of  1952. 

The  Choctaw,  Oklahoma  &  Gulf  Railroad  was  created  under  an  Act  of  Congress  in  1894. 
In  1904  it  was  leased  for  999  years  to  the  Chicago,  Rock  Island  &  Pacific  Railway  Company,  which 

[  673  ] 


owns  the  entire  capital  stock.    At  the  time  of  the  lease  the  interest  on  the  Choctaw,  Oklahoma  & 
Gulf  issues  were  guaranteed  by  the  former. 


These  bonds  sold  in  1902  on 

a  3.85  to  4.55  basis 

1903 

4.20 

4.37 

1904 

4.15 

4.60 

1905 

3.55 

4.25 

1906 

4.35 

4.45 

1907 

4.45 

4.55 

1908 

4.50 

4.75 

1909 

4.70  (bid) 

1910 

4.45 

(bid) 

1911 

4.58  to  4.62 

1912 

4.65 

CHOCTAW   &   MEMPHIS   RAH^ROAD 
First  Mortgage  5s 

Dated  January  2,  1899  Maturing  January  1,  1949 

Interest  payable  January  1  and  July  1  at  the  First  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $3,750,000  Outstanding  $3,525,000 

Per  mUe  .    .  12,500 

Pro\'isions  of      Although  the  amount  authorized  was  $3,750,000,  as  above,  by  the  terms  of  the  Choctaw, 
issue:  Oklahoma  &  Gulf  Railroad  Consolidated  5s  of  1952,  this  amoimt  was  Umited  to  $3,525,000, 

all  of  which  is  outstanding. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  282.32  miles  of  road  from  the  west  bank 

of  the  Mississippi  River  on  the  company's  line  in  Arkansas  to  the  Oklahoma-Arkansas 
State  Line;  on  terminals  in  Memphis,  Tenn.,  and  trackage  rights  from  Memphis  to  Bridge 
Sidings,  Ark. 

These  bonds  have  been  ASSUMED  by  the  Choctaw,  Oklahoma  &  Gulf  Railroad  Company, 
and  later  ASSUMED  by  the  Chicago,  Rock  Island  &  Pacific  Railway  Company. 

Equity:  The  above  bonds  are  prior  in  lien  to  the  Choctaw,  Oklahoma  &  Gulf  Consolidated  5s  of  1952, 

a  sufficient  number  of  which  have  been  reserved  to  retire  this  issue  at  maturity. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

The  Choctaw  &  Memphis  Railroad  Company  was  purchased  in  1900  by  the  Choctaw,  Oklahoma 
&  Gulf  Railroad  Company,  whose  entire  capital  stock  is  owned  by,  and  its  property  leased  to,  the 
Chicago,  Rock  Island  &  Pacific  Railway  Company  for  999  years  from  1904. 

These  bonds  were  quoted  in  1909  on  a  4.45  basis  (bid) 

1910  4.45  to  4.55 

1911  4.55 
December,  1912    4.65 

[  674  ] 


LITTLE   ROCK  BRIDGE   COMPANY 

First  Mortgage  6s 

Dated  June  29,  1899  Maturing  July  1,  1919 

Interest  payable  January  1  and  July  1  at  the  First  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 
Authorized  $375,000  Outstanding  $175,000 

Security :  The  above  bonds  are  secured  by  a  first  mortgage  on  the  bridge  across  the  Arkansas  River  at 

Little  Rock  and  on  all  the  property  pertaining  to  the  same. 

These  bonds  have  been  ASSUMED  by  the  Chicago,  Rock  Island  &  Pacific  Railway  Company. 

Sinking  fund :  The  company  has  provided  for  the  retirement  of  these  bonds  by  means  of  a  sinking  fund  equal 
to  $21,000  each  year,  beginning  June  1,  1903.  Up  to  June  30,  1912,  $200,000  of  these  bonds 
had  thus  been  retired  and  cancelled  by  this  sinking  fund. 

Redemption:  The  above  bonds  are  redeemable  for  the  sinking  fund  at  105  and  interest  at  the  rate  of  $20,000 
yearly. 

Trustee:  Girard  Trust  Company,  Philadelphia. 

The  Little  Rock  Bridge  Company  was  incorporated  in  the  State  of  Arkansas  to  build  the  above- 
mentioned  bridge  over  the  Arkansas  River.  Its  entire  capital  stock  is  owned  by  the  Choctaw, 
Oklahoma  &  Gulf  Railroad  Company,  which  in  turn  is  controlled  by  the  Chicago,  Rock  Island  & 
Pacific  Railway  Company. 


CHOCTAW,  OKLAHOMA   &  GULF  RAILROAD 

Consolidated  Mortgage  5s 

Dated  May  1,  1902  Maturing  May  1,  1952 

Interest  payable  May  1  and  November  1  at  the  Girard  Trust  Company,  Philadelphia,  and 


at  the  First  National  Bank,  New  York. 
Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Outstanding  $5,411,000 
Per  mile  .    .  5,596 


The  amount  authorized  is  $1,000,000  for  mining  property,  and  $15,000  per  mile,  including 
underlying  bonds  of  completed  railroad  covered. 

Provisions  of      By  the  terms  of  the  Chicago,  Rock  Island  &  Pacific  Railway  Refunding  Mortgage  no  further 
issue:  bonds  may  be  issued  except  for  the  purpose  of  refunding  a  like  amount  of  $5,500,000  Choctaw, 

Oklahoma  &  Gulf  General  Mortgage  5s  of  1919,  which  upon  issuance  are  to  be  immediately 
placed  with  the  trustee  of  the  above  refunding  mortgage. 

Security :  The  above  bonds  are  secured  by  a  direct  mortgage  upon  967.39  miles  of  road,  together  with 

leaseholds,  buildings,  equipment  and  future  acquisitions.    They  are  secured  by  a  first  mort- 
[  675  ] 


gage  on  334.5  miles  of  road,  a  second  mortgage  on  632.89  miles  of  road,  covered  by  the  first 
lien  of  the  Choctaw,  Oklahoma  &  Gulf  General  5s,  the  Choctaw  &  Memphis  5s,  and  the  Little 
Rock  Bridge  Company  6s.  They  are  further  secured  by  a  first  lien  on  the  leaseholds  of  the 
company  aggregating  62.27  miles. 

The  above  bonds  have  been  ASSUMED  by  the  Chicago,  Rock  Island  &  Pacific  Railway 
Company  under  the  terms  of  its  lease. 

Trustee:  Girard  Trust  Company,  Philadelpliia. 

For  a  history  of  the  Choctaw,  Oklahoma  &  Gulf  Railroad  Company,  see  page  673. 


These  bonds  sold  in  1904  on  a  4.80  basis 

1905 

4.25 

1906 

4.45  to  4.55 

1908 

4.50       4.60 

1909 

4.37       4.40 

1910 

4.45       4.60 

1911 

4.50       4.55 

1912 

4.55       4.65 

ROCK   ISLAND,  ARKANSAS    &  LOUISIANA  RAILROAD 

First  Mortgage  43^s 

Dated  March  1,  1910  Maturing  March  1,  1934 

Interest  payable  March  1  and  September  1  at  the  First  National  Bank,  New  York,  and  at 

offices  in  certain  cities  in  Europe  as  may  be  designated. 

Coupon  bonds  of  $100,  $500  and  $1,000,  registerable  as  to  principal. 

Registered  bonds  of  $500,  $1,000,  $5,000  or  multiples  of  $5,000. 

Coupon  and  registered  bonds  interchangeable. 

Authorized  $30,000,000  Outstanding  $11,000,000 

Per  mile  .    .  33,300 

Provisions  of      In  addition  to  the  $11,000,000  outstanding,  $10,000,000  of  the  amoimt  authorized  are  reserved 
issue:  for  new  mileage  at  not  exceeding  $30,000  per  mile,  and  $9,000  for  additions  and  betterments 

exclusive  of  equipment. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  330.39  miles  of  road,  equipment  and 

future  acquisitions.     They  are  also  secured  by  a  first  mortgage  on  trackage  rights  aggregat- 
ing 37.89  miles. 

These  bonds  are   GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Chicago, 
Rock  Island  &  Pacific  Railway  Company  by  endorsement. 

Redemption:      The  bonds  are  redeemable  at  105  and  interest  on  any  interest  date  upon  60  days'  notice. 

Trustee:  The  Bankers  Trust  (Company,  New  York. 

The  Rock  Island,  Arkansas  &  Louisiana  Railroad  was  incorporated  in  1905  under  the  laws  of 
the  States  of  Louisiana  and  Arkansas,  as  a  consolidation  of  the  Little  Rock  &  Southern  Railroad, 

f  676  1 


the  Arkansas  Southern  Railroad  and  the  Arkansas  Southern  Extension  Railway  Companies.  By 
indentures  dated  January  31,  1906,  and  March  1,  1910,  the  road  was  leased  for  999  years  to  the  Chi- 
cago, Rock  Island  &  Pacific  Railway  Company,  which  guaranteed  the  company's  bonds,  and  agreed 
to  pay  all  rentals,  taxes  and  $500  for  corporate  expenses.  The  Chicago,  Rock  Island  &  Pacific 
Railway  Company  owns  the  entire  capital  stock  of  the  Rock  Island,  Arkansas  &  Louisiana  Railroad 
Company. 

In  1912  these  bonds  were  quoted  on  a  5.00  to  5.50  basis  (bid). 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


ROCK  ISLAND,  ARKANSAS   &  LOUISIANA  RAILROAD 

Hot  Springs  Western  4s 

Dated  October  14,  1911  Maturing  July  1,  1939 

Interest  payable  January  1  and  July  1  at  Chicago. 

Coupon  notes  of  $1,000. 
Authorized  $453,600  Outstanding  $453,600 

Security:  The  above  notes  are  a  direct  obligation  of  the  Rock  Island,  Arkansas  &  Louisiana  Rail- 

road Company,  but  are  not  secured  by  a  mortgage. 

They  have  been   GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Chicago, 
Rock  Island,  &  Pacific  Railway  Company. 


KEOKUK   &  DES   MOINES   RAILWAY 

First  Mortgage  5s 

Dated  September  20,  1878  Maturing  October  1,  1923 

Interest  payable  April  1  and  October  1  at  the  First  National  Bank,  New  York. 

Coupon  bonds  of  $100,  $500  and  $1,000,  registerable  as  to  prmcipal. 
Authorized  $2,750,000  Outstanding  $2,750,000 

Per  mile  .    .  10,975 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  162.31  miles  of  road  extending  from 

Keokuk  to  Des  Moines,  la.;  also  upon  equipment. 

These  bonds  are  GUARANTEED  as  to  INTEREST  by  the  Chicago,  Rock  Island  &  Pacific 
Railway  Company  under  the  terms  of  its  lease. 

Trustee:  The  Farmers'  Loan  &  Trust  Company,  New  York. 

[  677  ] 


The  Keokuk  &  Des  Moines  Railway  was  a  reorganization  on  January  1,  1874,  of  the  Eastern 
Division  of  the  Des  Moines  Valley  Railroad,  which  had  been  opened  for  traffic  in  1870,  and  sold  in 
foreclosure  in  1873.  The  new  company  was  leased  in  1878  to  the  Chicago,  Rock  Island  &  Pacific 
Railroad  Company  until  December,  1923.  Under  the  terms  of  the  lease  the  Chicago,  Rock  Island 
&  Pacific  Railroad  Company  was  to  pay  interest  on  the  bonds  and  25%  of  the  gross  earnings  as 
annual  rental;  and  the  existing  bonds  were  to  be  exchanged  for  $2,750,000  5%  first  mortgage  bonds. 
The  Chicago,  Rock  Island  &  Pacific  Railroad  was  succeeded  in  1880  by  the  Chicago,  Rock  Island  & 
Pacific  Railway,  which  owns  a  majority  of  the  capital  stock  of  the  Keokuk  &  Des  Moines  Railway. 


These  bonds  sold  in  1902  on  a  4.25  to  4.30 

1903 

4.37 

4.67 

1904 

4.45 

4.67 

1905 

4.15 

4.27 

1906 

4.05 

4.55 

1907 

4.75 

5.50 

1908 

4.60 

5.12 

1909 

4.50 

4.70 

1910 

4.60 

5.00 

1911 

4.70 

5.10 

1912 

4.85 

5.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine. 


WHITE   &  BLACK  RIVER  VALLEY  RAILROAD 

First  Mortgage  5s 

Dated  June  30,  1900  Maturing  July  1,  1980 

Interest  payable  January  1  and  July  1  at  the  First  National  Bank,  New  York. 

Coupon  bonds  of  $1,000,  registerable  as  to  principal. 

Authorized  $800,000  Outstandmg  $600,000 

Per  mUe  .    .         9,677 

Provisions  of      In  addition  to  the  $600,000  outstanding,  there  are  $200,000  reserved  to  extend  the  road  to 
issue:  Batesville. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  62.27  miles  of  road,  equipment  and  future 

acquisitions. 

The  bonds  are  GUARANTEED  as  to  INTEREST  by  the  Choctaw,  Oklahoma  &  Gulf  Rail- 
road by  endorsement. 

The  White  &  Black  River  Valley  Railroad  Company  was  chartered  under  the  laws  of  the  State 
of  Arkansas  in  1881  as  the  Batesville  &  Brinkley  Railroad  Company.  In  1890  the  Batesville  & 
Brinkley  Railroad  changed  its  name  to  the  present  title,  the  White  &  Black  River  Valley  Railroad 
Company.  Bonds  of  the  Batesville  &  Brinkley  Railroad  were  cancelled  and  White  &  Black  River 
Valley  Railroad  bonds  were  issued  in  lieu  thereof. 

The  company  was  leased  to  the  Choctaw,  Oklahoma  &  Gulf  Railroad  Company  for  80  years 

[  678  ] 


from  July,  1900,  the  annual  rental  to  be  equal  to  interest  on  $500,000  5%  bonds  for  the  first  10 
years  and  on  $600,000  5%  bonds  thereafter.  (For  history  of  the  Choctaw,  Oklahoma  &  Gulf  Rail- 
road Company,  see  page  673.) 


ST.  PAUL    &   KANSAS   CITY   SHORT   LINE   RAILROAD 

First  Mortgage  4J4s 

Dated  February  1,  1911  Maturing  February  1,  1941 

Interest  payable  February  1  and  August  1  at  New  York  or  London. 

Coupon  bonds  of  $500  and  $1,000;  £100  and  £200,  registerable  as  to  principal  or  fully  registerable. 

Coupon  and  registered  bonds  interchangeable. 

Sterling  bonds  will  be  exchangeable  for  doUar  bonds  after  February  1,  1912,  at  a  fixed  rate 

of  $4.85  per  £  sterling. 

Authorized  $30,000,000  Outstanding  $10,000,000 

Per  mile  .    .  52,900 

Provisions  of      Of  the  $30,000,000  authorized  $10,000,000  are  outstandmg  as  above,  $10,000,000  have  been 
issue:  reserved  for  new  mileage  at  cost  and  $10,000,000  for  actual  cost  of  additions  and  betterments 

to  the  hnes  imder  this  mortgage. 

Security:  The  above  bonds  are  secured  by  a  first  mortgage  on  188.65  miles  of  road  including  the  hue 

from  the  Rock  Island  Railway  at  Allerton  through  Des  Moines  to  Mason  City  near  a  point 
of  connection  with  the  Chicago-St.  Paul  line,  also  upon  trackage  rights  over  the  Chicago, 
Rock  Island  &  Pacific  Railway  from  Carlisle  to  Des  Moines. 

The  bonds  are  GUARANTEED  as  to  PRINCIPAL  and  INTEREST  by  the  Chicago, 
Rock  Island  &  Pacific  Railway  Company  by  endorsement. 

Redemption:      Redeemable  as  a  whole  but  not  in  part  at  105  and  interest  on  any  interest  date  on  60  days' 
notice. 

Trustee:  Bankers  Trust  Company,  New  York. 

For  history  of  the  St.  Paul  &  Kansas  City  Short  Line  Railroad  Company,  see  page  656. 

These  bonds  were  quoted  in  1911  on  a5. 125  basis  (bid) 
December,  1912  5.25 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  Maine  and  New  Hampshire. 


[  679  ] 


CHICAGO,  ROCK   ISLAND    &   PACIFIC   RAILWAY 

Equipment  Trust  43^2%  Gold  Notes.     Series  "A" 

Dated  February  1,  1907  Maturing  $325,000  February  1  and  August  1  until  February  1,  1917 

Interest  payable  February  1  and  August  1  at  the  First  National  Bank,  New  York. 


Coupon  notes  of  $1,000. 


Authorized  $6,500,000 


Outstanding  $3,250,000 


The  above  notes  mature  in  twenty  consecutive  semi-annual  installments  of  $325,000  each, 
commencing  August  1,  1907,  and  ending  February  1,  1917.  Up  to  June  30,  1912,  $3,250,000 
have  matured. 

Security:  These  notes  are  a  direct  obligation  of  the  company.    They  are  secured  by  an  equipment  lease 

covering  50  locomotives,  65  passenger  train  cars  and  5,000  freight  train  cars. 

The  title  to  the  equipment  shall  not  revert  to  the  Railway  Company  until  all  the  notes  have 
been  paid,  and  ample  powers  are  vested  with  the  trustee  for  the  protection  of  the  note  holders. 

Trustee:  Bankers  Trust  Company,  New  York. 

The  above  notes  were  underwritten  by  Speyer  &  Company,  New  York,  in  1907,  and  were  offered 
in  February  of  that  year  to  the  public  on  a  5.125  basis. 


CHICAGO,  ROCK   ISLAND    &  PACIFIC   RAILWAY 
Equipment  Trust  6%  Notes.     Series  **B" 

Dated  October  15,  1907  Maturing  $60,000  each  April  15  and  October  15  until  April  15,  1913 

Interest  payable  Ai^ril  15  and  October  15  at  Harvey  Fisk  &  Sons,  New  York. 


Coupon  notes  of  $10,000  each  and  one  note  for  $6,541. 


Authorized  $586,541 


Outstanding  $120,000 


Provisions  of      The  above  notes  mature  $46,541  October  15,  1908,  and  in  nine  consecutive  semi-annual 
issue:  installments  of  $60,000  each,  commencing  April  15,  1909,  and  ending  April  15,  1913.    Up  to 

June  30,  1912,  $466,541  have  been  matured. 


Security: 


These  notes  are  a  direct  obligation  of  the  company.     They  are  secured  by  an  equipment 
lease  on  45  locomotives. 


CHICAGO,  ROCK  ISLAND    &  PACIFIC   RAILWAY 
Equipment  Trust  4%%  Bonds.    Series  "C" 

Dated  October  1,  1909  Maturing  $265,000  each  April  1  and  October  1  until  October  1,  1919 

Interest  payable  April  1  and  October  1  at  the  First  National  Bank,  New  York. 


Coupon  bonds  of  $1,000. 


Authorized  $5,300,000 


Outstanding  $3,975,000 


Provisions  of 
issue: 

Security : 
Trustee : 


The  above  bonds  mature  in  twenty  semi-annual  payments  of  $265,000  each,  commencing 
April  1,  1910,  and  ending  October  1,  1919.  Up  to  June  30,  1912,  $1,325,000  of  these  bonds 
have  been  redeemed. 

These  bonds  are  secured  by  an  equipment  lease  covering  85  locomotives,  100  passenger  cars 
and  3,610  freight  cars.  The  title  to  this  equipment  shall  remain  with  the  trustee  until  all 
these  bonds  shall  have  been  jiaid. 

Central  Trust  Company,  New  York. 


CHICAGO,  ROCK  ISLAND    &  PACIFIC   RAILWAY 
Equipment  Trust  4H%  Bonds.     Series  "D" 

Dated  May  2,  1910  Maturing  $225,000  each  May  1  and  November  1  until  May  1,  1925 

Interest  payable  May  1  and  November  1  at  the  First  National  Bank,  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal. 


Authorized  $6,750,000 


Outstanding  $5,850,000 


Provisions  of      The  above  bonds  mature  in  thirty  semi-annual  installments  of  $225,000  each,  commencing 
issue:  November  1,  1910,  and  ending  May  1,  1925.     Up  to  June  30,  1912,  $900,000  of  these  bonds 

had  been  redeemed. 

Security:  These  bonds  are  a  direct  obligation  of  the  company  and  are  secured  by  an  equipment  lease 

covering  134  locomotives,  4  motor  cars,  71  passenger  cars  and  4,000  freight  cars.    The  title 
to  this  equipment  shall  remain  with  the  trustee  until  all  of  these  bonds  shall  have  been  paid. 


Trustee: 


Bankers  Trust  Company,  New  York. 


[  681  ] 


CHICAGO,  ROCK  ISLAND    &  PACIFIC   RAILWAY 

Equipment  Trust  5%  Notes.     Series  "E" 

Dated  January  1,  1911  Maturing  $5,000  each  January  1  and  July  1  until  January  1,  1921 

Interest  payable  January  1  and  July  1  to  the  United  States  Express  Company,  New  York. 

Coupon  notes  of  $1,000. 
Authorized  $100,000  Outstanding  $90,000 

This  issue  is  owned  entirely  by  the  United  States  Express  Company. 


CHICAGO,  ROCK  ISLAND    &  PACIFIC   RAILWAY 

Equipment  Trust  4^^%  Notes.    Series  "F" 

Dated  August  1,  1911  Maturing  $12,000  each  February  1  and  August  1  to  August  1,  1926 

Interest  payable  February  1  and  August  1  at  Bankers  Trust  Company,  New  York. 

Coupon  notes  of  $1,000. 
Authorized  $360,000  Outstanding  $348,000 

Provisions  of      The  above  notes  mature  in  thirty  semi-annual  payments  of  $12,000  each,  commencing  Febru- 
issue:  ary  1,  1912,  and  ending  August  1,  1926. 

Security:  These  notes  are  a  direct  obUgation  of  the  company  and  are  seciu-ed  by  an  equipment  lease 

covering  24  postal  cars,  6  steel  postal  cars  and  11  steel  baggage  cars.  The  title  to  this  equip- 
ment shall  remain  with  the  trustee  until  all  of  these  notes  shall  have  been  paid,  and  the  trustee 
is  vested  with  various  powers  for  the  protection  of  the  note  holders. 

Trustee:  Bankers  Trust  Company,  New  York. 

These  notes  were  offered  in  October,  1911,  by  White,  Weld  &  Company,  New  York,  on  a  5.00 
basis. 


ROCK  ISLAND    IMPROVEMENT   COMPANY 

Equipment  Gold  43^s 

Dated  January  3,  1905  Maturing  $225,000  each  January  1  and  July  until  January  1,  1915 

Interest  payable  January  1  and  July  1  at  New  York. 

Coupon  bonds  of  $1,000. 
Authorized  $4,500,000  Outstanding  $1,350,000 

Provisions  of      The  above  bonds  mature  in  twenty  semi-annual  payments  of  $225,000  each,  commencing 
issue:  July  1,  1905,  and  ending  January  1,  1915.     Up  to  June  30,  1912,  $3,150,000  of  these  bonds 

had  been  redeemed. 

[  682  ] 


Security:  These  bonds  are  a  direct  obligation  of  the  Rock  Island   Improvement  Company  and  are 

secured  by  an  equipment  lease  covering  50  locomotives,  1,000  box  cars,  475  coal  cars,  500 
furniture  cars,  250  dump  cars,  250  ballast  cars,  1,500  refrigerator  cars,  2  postal  cars,  7  com- 
bination baggage  and  mail  cars,  10  chair  cars,  and  10  passenger  coaches.  The  title  to  this 
equipment  shall  remain  with  the  trustee  until  all  these  bonds  shall  have  been  paid. 

These  bonds  have  been  ASSUMED  by  the  Chicago,  Rock  Island  &  Pacific  Railway  Company. 

Trustee :  Bankers  Trust  Company,  New  York. 

These  bonds  were  offered  in  October,  1911,  by  White,  Weld  &  Company  on  a  5.00  basis. 


ROCK  ISLAND   IMPROVEMENT   COMPANY 

Equipment  Gold  4Hs.    Series  "B" 

Dated  November  1,  1905  Maturing  $280,000  each  May  1  and  November  1  until  November  1,  1915 

Interest  payable  May  1  and  November  1  at  New  York. 


Coupon  bonds  of  $1,000. 


Authorized  $5,605,000 


Outstanding  $1,960,000 


Provisions  of      The  above  bonds  mature  $280,000  each  in  twenty  semi-annual  installments,  commencing 
issue:  May  1,  1906,  and  ending  November  1,  1915.     Up  to  June  30,  1912,  $3,645,000  of  these  bonds 

had  been  thus  redeemed. 

Security:  These  bonds  are  a  direct  obligation  of  the  Rock  Island  Improvement  Company,  and   are 

secured  by  an  equipment  lease  covering  10  chair  cars,  30  coaches,  6  smoking  cars,  17 
baggage  cars,  2,750  box  cars,  250  furniture  cars,  750  stock  cars,  5  mail  cars,  2  baggage 
and  mail  combination  cars,  6  combination  baggage  and  passenger  cars,  7  dining  cars, 
2  combination  parlor  cars,  4  combination  dining  and  passenger  cars,  5  observation  library 
cars,  247  Hart  convertible  ballast  cars,  3  double  plow  distributing  cars,  58  consoUdation 
locomotives,  6  balanced  compound  passenger  locomotives  and  11  Pacific  type  locomotives. 
The  title  to  this  equipment  shall  remain  with  the  trustee  until  all  these  bonds  shall  have  been 
paid. 

These  bonds  have  been  ASSUMED  by  the  Chicago,  Rock  Island  &  Pacific  Railway  Company. 

Trustee:  Bankers  Trust  Company,  New  York. 

These  bonds  were  offered  in  October,  1911,  by  White,  Weld  &  Company  on  a  5.00  basis. 


[  683  ] 


CHICAGO,  ROCK   ISLAND    &  PACIFIC   RAILWAY 

Twenty-Year  Debentxire  5s 


Dated  January  15,  1912 


Maturing  January  15,  193"^ 


Interest  payable  January  15  and  July  15,  at  New  York. 


Coupon  bonds  of  $1,000,  registerable  as  to  principal  or  fully  registerable. 
Coupon  and  registered  bonds  interchangeable. 


Authorized  $20,000,000 
Security: 


Outstanding  $20,000,000 


The  above  bonds  are  a  direct  obligation  of  the  company,  but  are  not  a  mortgage.  The  Rail- 
way Company  agrees  in  its  indenture  not  to  make  any  new  mortgage  upon  its  railroad  without 
including  these  debentures  ecpiallj-  with  every  bond  issue,  and  secured  by  any  such  new  mort- 
gage. It  is  agreed,  however,  that  this  will  not  prevent  the  renewal,  extension,  or  refunding 
of  any  existing  mortgage. 

Redemption:      These  bonds  are  redeemable  at  105  and  interest  upon  any  interest  date  on  60  days"  notice. 

Trustee:  Bankers  Trust  Company,  New  York. 

These  bonds  were  offered  in  January,  1912,  by  Speyer  &  Company  on  a  5.(20  basis. 

These  bonds  are  considered  a  legal  investment  for  savings  banks  in  New  Hampshire. 


Dated  July  1,  1912 


CHICAGO,  ROCK  ISLAND    &  PACIFIC   RAILWAY 

Equipment  Gold  4s 

Maturing  $170,000  each  January  1  and  July  1  to  July  1,  1927 
Interest  payable  January  1  and  July  1  at  New  York. 


Coupon  notes  of  $1,000. 


Authorized  $5,100,000 


Outstanding  $4,930,000 


Security : 


Trustee: 


Up  to  January  1,  1913,  $170,000  of  these  notes  had  been  redeemed. 


These  notes  are  a  direct  obhgation  of  the  company  and  are  secured  under  terms  of  a  Trust 
Agreement  covering  50  locomotives,  2  electric  motor  cars,  10  steel  baggage  cars,  10  steel 
combination  cars,  20  mail  cars,  6  dining  cars,  i  express  cars,  500  furniture  cars,  2,500  box 
cars,  700  steel  coal  cars,  and  200  convertible  ballast  cars,  costing  $5,557,788,  of  which  the 
company  paid  $457,788  in  cash,  issuing  the  above  notes  for  the  balance. 

The  title  to  the  above-described  equipment  remains  with  the  trustee  until  all  these  notes 
have  been  paid. 

Bankers  Trust  Company,  New  York. 


[  684  ] 


INDEX   TO    BOND   DESCRIPTIONS 


INDEX  TO  BOND  DESCRIPTIONS 

Adirondack  Ry.                                                                                                          System  Page 

First  4i^s  1942 D.  &  H 253 

Albany  &  Susquehanna  R.  R. 

First  3Ms  1946 D.  &  H 257 

Allegheny  Valley  Ry. 

General  4s  1942 Penna 608 

American  Dock  &  Improvement  Co. 

First  5s  1921 C.  R.  R.  of  N.  J 141 

Aroostook  County 

Gold  4Ks  1915 Bangor  &  Ar 83 

Aroostook  Northern  R.  R. 

First  5s  1947 Bangor  &  Ar 80 

Atchison,  Topeka  &  Santa  Fe  Ry. 

General  4s  1995 18 

Adjustment  4s  1995 19 

Transcontinental  Short  Line  4s  1958 20 

Serial  Debenture  4s  1913-1914 21 

Convertible  4s  1955 21 

Convertible  5s  1917 22 

Convertible  4s  1960 23 

Eastern  Oklahoma  Div.  First  4s  1928 23 

California-Arizona  Lines  First  &  Refunding  4i^s  1962 31 

Atlanta,  Knoxville  &  Northern  Ry. 

First  5s  1946 L.  &  N 398 

First  Consolidated  4s  2002 "            399 

Baltimore  &  Ohio  R.  R. 

Prior  Lien  3Hs  1925 46 

First  4s  1948 47 

Equipment  Trust  4^8  1913-1922 67 

Pittsburgh,  Lake  Erie  &  West  Virginia  Refunding  4s  1941 50 

Pittsburgh  Junction  &  Middle  Div.  First  3i.^s  1925 48 

Secured  Notes  4Ks  1913      51 

Southwestern  Div.  First  3^3  1925 49 

Baltimore,  Chesapeake  &  Atlantic  Ry. 

First  5s  1934 Penna 631 

[  687  ] 


Bangor  &  Aroostook  R.  R.                                                                              System  Page 

First  5s  1943 78 

Second  5s  1945 82 

Piscataquis  Div.  First  5s  1943 78 

Van  Buren  Ext.  First  5s  1943 79 

Medford  Ext.  First  5s  1937 79 

Consolidated  &  Refunding  4s  1951 81 

Washburn  Ext.  First  5s  1939 82 

St.  John  River  Ext.  First  5s  1939 83 

Equipment  Trust  Certificates  Series  "  C  " 84 

Equipment  Trust  Certificates  Series  "  D  " 84 

Equipment  Trust  Certificates  Series  "  E  " 85 

Bangor  &  Portland  Ry. 

First  6s  1930 D.  L.  &  W 272 

Second  6s  1932 "           272 

Third  6s  1936 "            272 

Battle  Creek  &  Sturgis  Ry. 

First  3s  1989 Mich.  Cent 458 

Bay  City  &  Battle  Creek  Ry. 

First  3s  1989 Mich.  Cent 459 

Beaver  &  EUwood  R.  R. 

First  4s  1919  (called  in  1912) L.  S.  &  M.  S 359 

Beech  Creek  Extension  R.  R. 

First  33/^s  1951 N.  Y.  C 485 

Consolidated  4s  1955 "           486 

Beech  Creek  R.  R. 

First  4s  1936 N.  Y.  C 483 

Second  5s  1936 "           484 

Belfast  &  Moosehead  Lake  R.  R. 

First  Sinking  Fund  4s  1920 Me.  Cent 429 

Belleville  &  Carondelet  R.  R. 

First  6s  1923      111.  Cent 327 

Bell's  Gap  R.  R. 

Consolidated  Sinking  Fund  6s  1913 Penna 615 

Belvidere  Delaware  R.  R. 

Consolidated  Sinking  Fund  4s  1925 Penna 621 

Consolidated  Sinking  Fund  4s  1927        "        621 

Consolidated  Sinking  Fund  4s  1933       "        621 

Consolidated  Sinking  Fund  S^s  1943 "        622 

Boston  &  Albany  R.  R. 

Debenture  4s  1913 N.  Y.  C 502 

Debenture  3i^s  1951 "           502 

Debenture  S^s  1952 "           503 

Debenture  4s  1933 "           503 

1  688  ] 


Boston  &  Albany  R.  R.  —  continued                                                             System  Page 

Debenture  4s  1934 N.  Y.  C .  504 

Debenture  4s  1935 "           504 

Debenture  43/^s  1937 "           505 

Equipment  Trust  43.^s  1927 "           505 

Boston  &  Lowell  R.  R. 

Plain  4s  1932      B.  &  M 102 

Plain  4s  1915      "           102 

Plain  4s  1916      "           103 

Plain  4s  1917      "           103 

Plain  4s  1918      "           103 

Plain  33^s  1919      "           103 

Plain  3Hs  1921      "           104 

Plain  3Ks  1923      "           104 

Plain  33/^s  1925      "           104 

Plain  4s  1926      "           104 

Plain  4s  1927      "           104 

Plain  4s  1929      "           104 

Plain  4Hs  1933      "           105 

Boston  &  Maine  R.  R. 

Sinking  Fund  Improvement  4s  1937 98 

Plain  4s  1942      98 

Plain  43.^3  1944      98 

Plain  3s  1950      99 

Plain  3Ms  1921      99 

Plain  3Ks  1923      99 

Plain  33^8  1925      99 

Plain  4s  1926      100 

Plain  4Ms  1929      100 

One  Year  Notes  4s  1913 117 

Boston  &  New  York  Air  Line  R.  R. 

First  4s  1955 N.  Y.,  N.  H.  &  H 533 

Boston  &  Providence  R.  R. 

Plain  4s  1918      N.  Y.,  N.  H.  &  H 554 

Boston,  Revere  Beach  &  Lynn  R.  R. 

First  43^s  1927 128 

Boston  Terminal  Co. 

First  3Ks  1947 N.  Y.,  N.  H.  &  H 560 

Boyer  Valley  Ry. 

First  3Ks  1923 C.  &  N.  W 166 

Branford  Electric  Co. 

First  5s  1937 N.  Y.,  N.  H.  &  H 542 

Bridgeport  Traction  Co. 

First  5s  1923 N.  Y.,  N.  H.  &  H 557 

[  689  ] 


Bridgton  &  Saco  River  R.  R.  System  Page 

First  4s  1928 Me.  Cent 437 

Second  4s  1928 "               438 

Burlington  &  Missouri  River  R.  R. 

Consolidated  Sinking  Fund  6s  1918 C.  B.  &  Q 194 

Burlington,  Cedar  Rapids  &  Northern  Ry. 

Consolidated  First  5s  1934 Rock  Island      669 

Cambria  &  Clearfield  R.  R. 

First  5s  1941 Penna 613 

Cambria  &  Clearfield  Hy. 

General  4s  1955 Penna 617 

Canada  Southern  Ry. 

First  Consolidated  5s  1962 Mich.  Cent 459 

Carbondale  &  Shawneetown  R.  R. 

First  4s  1932 111.  Cent 327 

Carthage  &  Adirondack  Ry. 

First  4s  1981 N.  Y.  C 486 

Carthage,  Watertown  &  Sacket's  Harbor  R.  R. 

Consolidated  5s  1931 N.  Y.  C 498 

Cedar  Rapids  &  Missouri  River  R.  R. 

First  7s  1916 C.  &  N.  W 169 

Cedar  Rapids,  Iowa  Falls  &  Northwestern  Ry. 

First  5s  1921 Rock  Island      668 

Central  New  England  Ry. 

First  4s  1961 N.  Y.,  N.  H.  &  H 558 

Central  Ohio  R.  R. 

Consolidated  First  4i^s  1930 B.  &  0 53 

Central  R.  R.  of  New  Jersey 

General  5s  1987 140 

Equipment  Trust  Bonds  Series  "C" 143 

Equipment  Trust  Bonds  Series  "D" 143 

Equipment  Trust  Bonds  Series  "E" 144 

Equipment  Trust  Bonds  Series  "F" 144 

Chicago  &  Northwestern  Ry. 

General  3i/^s  and  4s  1987 156 

Collateral  Trust  Sinking  Fund  5s  and  6s  1929 157 

Collateral  Trust  Extension  4s  1926 158 

Sinking  Fund  Debenture  5s  1933 159 

Debenture  5s  1921 159 

Consolidated  Sinking  Fuiul  7s  1915 160 

Chicago  &  St.  Louis  Ry. 

First  6s  1915 A.  T.  &  S.  F 25 

[  (if)0   I 


Chicago,  Burlington  &  Quincy  R.  R.                                                                      System  Page 

General  4s  1958 188 

Illinois  Div.  33^s  and  4s  1949 189 

Nebraska  Ext.  Sinking  Fund  4s  1927 190 

Debenture  5s  1913 191 

Iowa  Div.  First  4s  and  5s  1919 191 

Denver  Ext.  Collateral  Trust  Sinking  Fund  4s  1922 192 

Sinking  Fund  Currency  Plain  4s  1921 193 

Chicago,  Hammond  &  Western  Ry. 

First  6s  1927 L.  S.  &  M.  S 363 

Chicago,  Indiana  &  Southern  R.  R. 

Mortgage  4s  1956 L.  S.  &  M.  S 352 

Chicago,  Indianapolis  &  Louisville  Ry. 

Refunding  6s,  5s  and  4s  1947      L.  &  N 409 

Equipment  Series  "A"  4lis  1913-1921 "        410 

Equipment  Series  "B"  43^  2S  1913-1921 "        411 

Chicago,  Memphis  &  Gulf  R.  R. 

First  5s  1940 331 

Chicago,  Milwaukee  &  Puget  Sound  Ry. 

First  4s  1949 C.  M.  &  St.  P 223 

Chicago,  Milwaukee  &  St.  Paul  Ry. 

General  4s  and  Sj^s  1989 212 

Debenture  4s  1934 213 

Chicago  &  Pacific  Western  Div.  First  5s  1921      213 

Dubuque  Div.  First  6s  1920 214 

Wisconsin  &  Minnesota  Div.  First  5s  1921 215 

Chicago  &  Missouri  River  Div.  First  5s  1926 216 

LaCrosse  &  Davenport  Div.  First  5s  1919 216 

Wisconsin  Valley  Div.  First  6s  1920      217 

Chicago  &  Lake  Superior  Div.  First  5s  1921 218 

Terminal  First  5s  1914 219 

European  Loan  Debenture  4s  1925 222 

Convertible  Debenture  4}  ^s  1932 224 

Chicago,  Rock  Island  &  Pacific  R.  R. 

Collateral  Trust  4s  2002 Rock  Island      666 

First  6s  1917 "               666 

Chicago,  Rock  Island  &  Pacific  Ry. 

First  &  Refunding  4s  1934 Rock  Island      672 

Choctaw,  Oklahoma  &  Gulf  Collateral  Trust  4s  1913-1918  ...                "               673 

Debenture  5s  1932 "               684 

Equipment  Trust  43-^%  Notes  Series  "A"  1913-1917 "               680 

EquipmentTrust  6%  Notes  Series  "B"  1913 "               680 

Equipment  Trust  41^%  Bonds  Series  "C"  1913-1919 "               681 

Equipment  Trust  4K%  Bonds  Series  "D"  1913-1925 "               681 

Equipment  Trust  5%  Notes  Series  "E"  1913-1921 "               682 

[  691  ] 


Chicago,  Rock  Island  &  Pacific  Ry. — continued  System  Page 

Equipment  Trust  41/^%  Notes  Series  "F"  1913-1926 Rock  Island 682 

Equipment  Trust  4%  Notes  1913-1927 "  684 

General  4s  1988 "  667 

Chicago,  St.  Louis  &  Minneapolis  Ry. 

First  6s  1918 C,  St.  P.  M.  &  0 236 

Chicago,  St.  Louis  &  New  Orleans  R.  R. 

Consolidated  S^s  and  5s  1951 •  111.  Cent 330 

Memphis  Div.  First  4s  1951 "      331 

Chicago,  St.  Paul,  Minneapolis  &  Omaha  R.  R. 

Consolidated  6s  and  3}4s  1930 234 

Debenture  5s  1930 239 

Chicago,  Santa  Fe  &  California  Ry. 

First  5s  1937 A.  T.  &  S.  F 26 

Choctaw  &  Memphis  R.  R. 

First  5s  1949 Rock  Island      674 

Choctaw,  Oklahoma  &  Gulf  R.  R. 

General  5s  1919 Rock  Island      673 

Consolidated  5s  1952 "  675 

Cincinnati  &  Muskingum  Valley  R.  R. 

First  4s  1948 Penna 652 

Cincinnati,  Lebanon  &  Northern  Ry. 

First  5s  1916 Penna 649 

First  Consolidated  4s  1942 "        649 

Clearfield  &  Jefferson  Ry. 

First  6s  1927 Penna 616 

Cleveland,  Akron  &  Columbus  Ry. 

General  5s  1927 Penna 650 

First  Consolidated  4s  1940 "        651 

Cleveland  &  Marietta  Ry. 

First  Sinking  Fund  43/^s  1935 Penna 648 

Cleveland  &  Pittsburgh  R.  R. 

General  Sinking  Fund  Series  "A"  and  "B"  43^2S  1942      ....     Penna 646 

General  Sinking  Fund  Series  "B"  3j^s  1942 "        646 

General  Sinking  Fund  Series  "C"  3j/^s  1948 "        647 

General  Sinking  Fund  Series  "D"  33^s  1950 "        647 

Cleveland,  Lorain  &  Wheeling  Ry. 

Consolidated  5s  1933 B.  &  0 63 

General  5s  1936 "  64 

Consolidated  Refunding  43/^s  1930 "  64 

Cleveland  Terminal  &  Valley  R.  R. 

First  4s  1995       B.  &  0 62 

Concord  &  Claremont  R.  R. 

First  43^s  1914 B.  &  M 106 

[  692  ] 


Concord  &  Montreal  R.  R.  System  Page 

Mortgage  Currency  4s  1920 B.  &  M 107 

Plain  4s  1920      "           108 

Plain  Si^^s  1920      "           108 

Connecticut  &  Passunipsic  Rivers  R.  R. 

First  4s  1943 B.  &  M 107 

Connecticut  Lighting  &  Power  Co. 

First  5s  1939 N.  Y.,  N.  H.  &  H 557 

Connecticut  Railway  &  Lighting  Co. 

First  &  Refunding  4^8  1951 N.  Y.,  N.  H.  &  H 556 

Connecticut  River  R.  R. 

Plain  4s  1943      B.  &  M 109 

Plain  314s  1921      "           109 

Plain  3Ks  1923      "           109 

Connecting  Railway  Co. 

First  4s  1951 Penna 620 

Consolidated  Railway 

Debenture  4s,  3i^s  and  3s  1930      N.  Y.,  N.  H.  &  H.      ...  551 

Debenture  4s  1954 551 

Debenture  4s  1955 551-2 

Debenture  4s  1956 552 

Cooperstown  &  Susquehanna  Valley  R.  R. 

First  5s  1918 D.  &  H 259 

Dakota  &  Great  Southern  Ry. 

First  5s  1916 C.  M.  &  St.  P 22f 

Danbury  &  Norwalk  R.  R. 

Consolidated  5s  and  6s  1920 N.  Y.,  N.  H.  &  H .4 

General  5s  1925      "  ...  314 

First  Refunding  4s  1955 "                      .    •  314 

Delaware  &  Hudson  Canal  Co.                                                                                                        .    .  315 

Pennsylvania  Div.  First  7s  1917 D.  &  H .  315 

Delaware  &  Hudson  Co.                                                                                                                .    .    .  316 

First  &  Refunding  4s  1943 332 

Convertible  Debenture  4s  1916 .    .    .  323 

Equipment  Debenture  4s  1913-1914 319 

First  Lien  Equipment  4j^s  1922 326 

Delaware  River  Railroad  &  Bridge  Co.                                                                               318 

First  Sinking  Fund  4s  1936 • Penna.   . 320 

Detroit  &  Bay  City  R.  R.                                                                                           325 

First  5s  1931 Mich.  C 321 

Detroit  River  Tunnel  Co.                                                                                            320 

First  43^s  1961 Mic'. 324 

Dexter  &  Newport  R.  R.                                                                                      324 

First  4s  1917 V. 333 

[  693  ] 


Dexter  &  Piscataquis  R.  R.  System                                   Page 

First  4s  1929 Me.  Cent 428 

Duluth  Short  Line  Ry. 

First  5s  1916 Nor.  Pac 583 

Dunkirk,  Allegheny  Valley  &  Pittsburgh  R.  R. 

First  41/^s  1960 N.  Y.  C 501 

Eastern  Railway  of  Minnesota,  Northern  Div. 

First  4s  1948 Gt.  Nor 295 

EUwood  Short  Line  R.  R. 

First  5s  1922 B.  &  0 57 

Elmira  &  Williamsport  R.  R. 

First  4s  1950 Penna 629 

Income  5s  2862      "        630 

Erie  &  Pittsburgh  R.  R. 

General  3}4s  1940 Penna 644 

European  &  North  American  Ry. 

Refunding  4s  1933 Me.  Cent 426 

Fargo  &  Southern  Ry. 

First  6s  1924 C.  M.  &  St.  P 219 

Fitchburg  R.  R. 

Plain  4Hs  1914 B.  &  M 

Plain  4s  1915 "  

Plain  4s  1916      "  

^^  Plain  4s  1920      "  

Plain  3J^s  1920 "  

(-ig  Plain  Si^s  1921 "  

Plain  4s  1925      "  

Plain  4s  1927      "  

Clevelan>i"  4s  1928      "  

pjjun  43^s  1928 "  

Cleveland  &^4Ms  1932 "  

Gene,  4^^1933 "  


Gener 


4s  1937 


P  orn  &  Missouri  Valley  R.  R. 


(ited  First  6s  1933 C.  &  N.  W. 


General  L 

Cleveland,  Loraii. 

Consolidate  '  „ 

^  ,  ^     '40 Penna.    . 

General  5s  1".     ...    ^i   n 
,  Ritchie  R.  R. 
Consolidated  K<.  MVP 

Cleveland  Terminal  &  "^j 


First  4s  1995       .    . 
Concord  &  Claremont  R.  I\ 

First  4^3  1914  .    .    .      jggj 

[  694  ] 


Mich.  Cent. 


Greenwich  &  Johnsonville  Ry.                                                                           System  ^ 

First  4s  1924 D.  &  H 260 

Greenwich  Tramway  Co. 

First  5s  1931 N.  Y.,  N.  H.  &  H 542 

Gulf,  Beaumont  &  Kansas  City  Ry. 

First  6s  1913 A.  T.  &  S.  F 28 

Second  6s  and  5s  1913      "            29 

Harrisburg,  Portsmouth,  Mount  Joy  &  Lancaster  R.  R. 

First  4s  1913      Penna 613 

Hartford,  Manchester  &  Rockville  Tramway  Co. 

First  5s  1924 N.  Y.,  N.  H.  &  H 540 

Hartford  Street  Ry. 

First  4s  1930 N.  Y.,  N.  H.  &  H 541 

Debenture  4s  Series  "  M "  1930 "                  ....  541 

Henderson  Bridge  Co. 

First  6s  1931 L.  &  N 387 

Hereford  Ry. 

First  4s  1930 Me.  Cent 434 

Housatonic  R.  R. 

Consolidated  5s  1937 N.  Y.,  N.  H.  &  H 529 

Huntington  &  Big  Sandy  R.  R. 

First  6s  1922 B.  &  0 60 

Hutchinson  &  Southern  Ry. 

First  5s  1928 A.  T.  &  S.  F 28 

Illinois  Central  R.  R. 

First  4s  1951 .' 314 

First  33^s  1950 314 

First  3i^s  1951 314 

First  3Ks  (April)  1951 315 

First  3s  1951 315 

Refunding  4s  1955 316 

43^%  Notes  1914 332 

Cairo  Bridge  4s  1950 323 

Collateral  Trust  4s  1952 319 

Litchfield  Div.  First  3s  1951 326 

Louisvalle  Div.  &  Term.  First  3Ks  1953 318 

Purchase  Lines  First  33^s  1952 320 

Omaha  Div.  Finst  3s  1951 325 

St.  Louis  Div.  &  Term.  First  3s  and  sy.s  1951 321 

Springfield  Div.  First  3Hs  1951      320 

Sterling  Trust  S^s  1950 324 

Western  Line  First  4s  1951      324 

Equipment  Trust  4^8  1913-1923 333 

[  695  ] 


Indiana  Harbor  Belt  R.  R.  System                               Page 

General  4s  and  2s  1957 L.  S.  &  M.  S 362 

Indiana,  Illinois  &  Iowa  R.  R. 

First  4s  1950 L.  S.  &  M.  S 353 

Indianapolis  &  Louisville  Ry. 

First  4s  1956 L.  &  N 411 

Iowa  FaUs  &  Sioux  City  R.  R. 

First  7s  1917 111.  Cent 329 

Iowa,  Minnesota  &  Northwestern  Ry. 

First  3Ms  1935 C.  &  N.  W 165 

Jackson,  Lansing  &  Saginaw  R.  R. 

First  3i^s  1951 Mich.  Cent 453 

Jamestown,  Franklin  &  Clearfield  R.  R. 

First  4s  1959 L.  S.  &  M.  S 348 

Johnsonburg  R.  R. 

First  6s  1929 Penna 617 

Joliet  &  Northern  Indiana  R.  R. 

First  4s  1957 Mich.  Cent 455 

Junction  R.  R. 

General  33^s  1930 Penna 606 

Kalamazoo,  Allegan  &  Grand  Rapids  R.  R. 

First  5s  1938 L.  S.  &  M.  S 349 

Kalamazoo  &  South  Haven  R.  R. 

First  5s  1939 Mich.  Cent 454 

Kalamazoo  &  White  Pigeon  R.  R. 

First  5s  1940 L.  S.  &  M.  S 349 

Kanawha  &  Michigan  Ry. 

First  4s  1990 L.  S.  &  M.  S 367 

Second  5s  1927 "  368 

Equipment  Trust  43.4s  1913-1922 "  369 

Kankakee  &  Southwestern  R.  R. 

First  5s  1921 111.  Cent 322 

Kentucky  Central  Ry. 

First  4s  1987 L.  &  N 397 

Keokuk  &  Des  Moines  Ry. 

First  5s  1923 Rock  Island      677 

Knox  &  Lincoln  Ry. 

Second  5s  Series  "A"  1921      Me.  Cent 432 

Lake  Erie  &  Western  R.  R. 

First  5s  1937 ' L.  S.  &  M.  S 354 

Second  5s  1941 "  355 

[  696  ] 


Lake  Shore  &  Michigan  Soiitliern  Ry.                                                                System  Page 

Debenture  4s  1931 347 

Debenture  4s  1928 346 

First  Slis  1997 346 

Leamington  &  St.  Clair  Ry. 

First  4s  1945 Mich.  Cent 460 

Lehigh  &  Wilkes-Barre  Coal  Co. 

Consolidated  4s  191.5-1950 C.  R.  R.  of  N.  J 142 

Little  Falls  &  Dolgeville  R.  R. 

First  3s  1932 N.  Y.  C 509 

Little  Rock  Bridge  Co. 

First  6s  1919 Rock  Island      675 

Louisville  &  Nashville  R.  R. 

Atlanta,  Knoxville  &  Cincinnati  Div.  Mortgage  4s  1955 396 

Evansville,  Henderson  &  Nashville  Div.  First  Sinking  Fund  6s  1919      383 

First  5s  1937 384 

First  Collateral  Trust  5s  1931 395 

General  Sinking  Fund  6s  1930 383 

New  Orleans  &  Mobile  Div.  First  6s  1930    .  ' 388 

New  Orleans  &  Mobile  Div.  Second  6s  1930 389 

Paducah  &  Memphis  Div.  First  4s  1946 392 

Pensacola  Div.  First  6s  1920 389 

St.  Louis  Property  First  5s  1916 403 

Southeast  &  St.  Louis  Div.  First  6s  1921      394 

Southeast  &  St.  Louis  Div.  Second  3s  1980 394 

Unified  4s  1940 382 

Louisville  &  Nashville -Southern  Ry. 

Joint  Monon  First  Collateral  Trust  4s  1952 L.  &  N 402 

Louisville  &  Nashville  Terminal  Co. 

First  4s  1952 L.  &  N 399 

Louisville,  Cincinnati  &  Lexington  Ry. 

General  43^s  1931      L.  &  N 386 

Louisville,  Henderson  &  St.  Louis  Ry. 

First  5s  1946 L.  &  N 403 

Louisville,  New  Orleans  &  Texas  Ry. 

Collateral  Trust  4s  1953 111.  Cent 317 

Mahoning  Coal  R.  R. 

First  5s  1934 L.  S.  &  M.  S 350 

Maine  Central  R.  R. 

Collateral  Trust  Sinking  Fund  5s  1923      424 

Consolidated  Refunding  5s  1961 434 

Sinking  Fund  Improvement  Series  "A"  4j^s  1916 433 

Sinking  Fund  Improvement  Series  "B"  4j^s  1917 433 

[  697  ] 


Maine  Central  R.  R.  —  continued  System  Page 

4%  Notes  1913 438 

4%  Notes  1914 ; 438 

Maine  Shore  Line  R.  R. 

First  6s  1923 Me.  Cent 422 

Manchester  &  Lawrence  R.  R. 

Plain  4s  1922      B.  &  M 114 

Manitowoc,  Green  Bay  &  Northwestern  Ry. 

First  3l4s  1941 C.  &  N.  W 163 

Maryland,  Delaware  &  Virginia  Ry. 

First  5s  1955 Penna 631 

McKeesport  &  Belle  Vernon  R.  R. 

First  6s  1918 L.  S.  &  M.  S 361 

Meriden  Horse  R.  R. 

Consolidated  5s  1924 N.  Y.,  N.  H.  &  H 537 

Meriden,  Southington  &  Coniponnce  Tramway  Co. 

First  5s  1928 N.  Y.,  N.  H.  &  H 543 

Michigan  Air  Line  R.  R. 

First  4s  1940 Mich.  Cent 454 

Michigan  Central  R.  R. 

First  3}4s  1952 452 

Debenture  4s  1929 456 

Middletown  Horse  R.  R. 

First  5s  1914     N.  Y.,  N.  H.  &  H 539 

Milwaukee  &  Northern  R.  R. 

First  4Hs  1913 C.  M.  &  St.  P 221 

Consolidated  6s  1913 "  222 

Milwaukee  &  State  Line  Ry. 

First  3i^s  1941 C.  &  N.  W 163 

Milwaukee,  Lake  Shore  &  Western  Ry. 

Ashland  Div.  6s  1925 C.  &  N.  W 172 

Consolidated  6s  1921 "  170 

Extension  &  Improvement  Sinking  Fund  5s  1929 "  172 

Michigan  Div.  6s  1924      "  171 

Marshfield  Ext.  First  5s  1922      "  174 

Milwaukee,  Sparta  &  Northwestern  Ry. 

First  4s  1947 C.  &  N.  W 175 

Minneapolis  &  St.  Louis  R.  R. 

First  Guaranteed  7s  1927 Rock  Island      671 

Minneapolis  Union  Ry. 

First  5s  and  6s  1922      Gt.  Nor 298 

Minnesota  &  Iowa  Ry. 

First  3i^s  1924 C.  &  N.  W 168 

Minnesota  &  South  Dakota  Ry. 

First  Sj^s  1935 C.  &  N.  W 168 

[  G98  ] 


Mobile  &  Montgomery  Ry.  System                                        Page 

First  4i^s  1945 L.  &  N 390 

Mohawk  &  Malone  Ry. 

First  4s  1991 N.  Y.  C 489 

Consolidated  Sj^s  2002 "  490 

Monongahela  River  R.  R. 

First  5s  1919 B.  &  O CO 

Montana  Central  Ry. 

First  5s  and  6s  1937      Gt.  Nor 296 

Montville  Street  Ry. 

First  5s  1920 N.  Y.,  N.  H.  &  H 538 

Morris  &  Essex  R.  R. 

First  7s  1914 D.  L.  &  W 272 

First  Consolidated  7s  1915 "  273 

First  Refunding  S^s  2000 "         274 

Narragansett  Pier  R.  R. 

First  4s  1916 N.  Y.,  N.  H.  &  H 561 

Nashville,  Chattanooga  &  St.  Louis  Ry. 

First  7s  1913 L.  &  N 404 

First  Consolidated  5s  1928 "  408 

Centreville  Branch  First  6s  1923 "  408 

Fayette  &  McMinnville  Branches  First  6s  1917      "  406 

Jasper  Branch  Ext.  First  6s  1923 .    "  407 

Lebanon  Branch  First  6s  1917 "  406 

Tracy  City  Branch  First  6s  1913-1917      "  405 

Nashville,  Florence  &  Sheffield  Ry. 

First  5s  1937 L.  &  N 391 

Naugatuck  R.  R. 

First  4s  1954 N.  Y.,  N.  H.  &  H 533 

Debenture  Sj^s  1930 "                   ....     528 

New  England  R.  R. 

Consolidated  4s  and  5s  1945 N.  Y.,  N.  H.  &  H 545 

New  Haven  &  Centerville  Street  Ry. 

First  5s  1933 N.  Y.,  N.  H.  &  H 536 

New  Haven  &  Derby  R.  R. 

Consolidated  5s  1918 N.  Y.,  N.  H.  &  H 532 

New  Haven  &  Northampton  Co. 

Refunding  Consolidated  4s  1956 N.  Y.,  N.  H.  &  H 546 

New  Haven  Street  Ry. 

First  5s  1913 N.  Y.,  N.  H.  &  H 535 

Consolidated  5s  1914 "                   ....     536 

New  Jersey  Junction  R.  R. 

First  4s  1986 N.  Y.  C 493 

[  699  ] 


New  London  Street  Ry.                                                                                          System  Page 

First  5s  1923 N.  Y.,  N.  H.  &  H 539 

Newport  &  Cincinnati  Bridge  Co. 

General  4i^s  1945      L.  &  N 385 

Newport  &  Richford  R.  R. 

First  5s  1941 B.  &  M 105 

New  York  &  Harlem  R.  R. 

First  33/^s  2000 N.  Y.  C 490 

New  York  &  Long  Branch  R.  R. 

First  4s  and  5s  1941      C.  R.  R.  of  N.  J 142 

New  York  &  Northern  Ry. 

First  5s  1927 N.  Y.  C 491 

New  York  &  Putnam  R.  R. 

First  Consolidated  4s  1993 N.  Y.  C 492 

New  York  Central  &  Hudson  River  R.  R. 

First  33/^s  1997 478 

Lake  Shore  Collateral  Trust  33^s  1998      479 

Michigan  Central  Collateral  Trust  Sj^s  1998 480 

Debenture  4s  1934 481 

Debenture  4s  1942 506 

43^%  Notes  1914 482 

414%  Notes  1915 483 

New  York  Central  Lines 

Equipment  Trust  (1907)  5s  1913-1922          N.  Y.  C 506 

Equipment  Trust  (1910)  4i/^s  1913-1925      "           507 

Equipment  Trust  (1912)  43^s  1913-1927      "    ■       507 

Equipment  Trust  (1913)  43^s  1914-1928      "           508 

New  York,  Chicago  &  St.  Louis  R.  R. 

First  Sinkmg  Fund  4s  1937 L.  S.  &  M.  S 356 

Debenture  4s  1931 "              357 

New  York,  Lackawanna  &  Western  Ry. 

First  6s  1921 D.  L.  &  AV 275 

Construction  5s  1923 "             276 

Terminal  &  Improvement  4s  1923 "             277 

New  York,  New  Haven  &  Hartford  R.  R. 

Harlem  River  &  Port  Chester  First  4s  1954 528 

Convertible  Debenture  6s  1948 547 

Convertible  Debenture  Certificates  Sj^s  1956      548 

Non-convertible  Debenture  4s  1914 548 

Non-convertible  Debenture  4s  and  33^s  1947 549 

Non-convertible  Debenture  33^s  1954 549 

Non-convertible  Debenture  4s  1955 549 

Non-convertible  Debenture  4s  1956 550 

5%  Notes  1913 550 

European  Loan  4s  1922 551 

[  700  ] 


New  York,  Philadelphia  &  Norfolk  R.  R.  System  Page 

First  4s  1939 Penna 632 

4%  Stock  Trust  Certificates  1948 "        610 

Income  4s  1939      "        633 

New  York,  Providence  &  Boston  R.  R. 

General  4s  1942  ' N.  ¥.,  N.  H.  &  H 529 

New  York,  Westchester  &  Boston  Ry. 

First  4Hs  1946 N.  ¥.,  N.  II.  &  H 558 

Nodaway  Valley  Ry. 

First  Sinking  Fund  7s  1920 C,  B.  &  Q 197 

Northern  Central  Ry. 

Consolidated  General  43/2S  Series  "E"  1925 Penna 627 

Second  General  5s  1926 "        628 

Northern  Maine  Seaport  R.  R. 

Railroad  &  Terminal  First  5s  1935 Bangor  &  Ar 80 

Northern  Ohio  Ry. 

First  5s  1945 L.  S.  &  M.  S 355 

Northern  Pacific -Great  Northern 

C,  B.  &  Q.  Collateral  .loint  4s  1921 Nor.  Pac 585 

Northern  Pacific  Ry. 

Prior  Lien  4s  1997 576 

General  Lien  3s  2047 577 

St.  Paul-Duluth  Div.  4s  1996 579 

Northern  Wisconsin  Ry. 

First  6s  1930 C,  St.  P.,  M.  &  0 237 

Northwestern  Union  Ry. 

First  Sinking  Fund  7s  1917 C.  &  N.  W 164 

Norwich  &  Worcester  R.  R. 

Debenture  4s  1927 N.  Y.,  N.  H.  &  H 555 

Norwich  Street  Ry. 

First  5s  1923 N.  Y.,  N.  H.  &  H 538 

Norwood  &  Montreal  R.  R. 

First  5s  1916 N.  Y.  C 496 

Ohio  &  Little  Kanawha  R.  R. 

First  5s  1950 B.  &  0 65 

Ohio  River  R.  R. 

First  5s  1936 B.  &  0 58 

General  5s  1937 "  59 

Old  Colony  R.  R. 

Plain  4s  1938      N.  Y.,  N.  H.  &  H 552 

Plain  4s  1924      "  ....     553 

Plain  4s  1925      "  ....     553 

Plain  Sy^s  1932 "  ....     553 

[  701  ] 


Oswego  &  Rome  R.  R.                                                                                         System  Page 

First  7s  1915 N.  Y.  C 499 

Second  5s  1915 "           500 

Oswego  &  Syracuse  R.  R. 

Construction  5s  1923 D.  L.  &  W 277 

Oswego  Railroad  Bridge  Co. 

First  6s  1915 N.  Y.  C •   .    .  496 

Pawtuxet  Valley  R.  R. 

First  4s  1925 N.  Y.,  N.  H.  &  H 544 

Pennsylvania  &  Northwestern  R.  R. 

General  5s  1930 Penna 614 

Pennsylvania  Co. 

First  4Hs  1921 Penna 636 

Series  "A"  Trust  Certificates  3i^s  1937 "        637 

Series  "B"  Trust  Certificates  3Ms  1941 "        638 

Series  "C"  Trust  Certificates  3 J^s  1942 "        638 

Series  "D"  Trust  Certificates  31/^8  1944 "        639 

Series  "E"  Trust  Certificates  4s  1952 "        640 

Collateral  Sj^s  1916      "        640 

Collateral  4s  1931       "        641 

French  Franc  Certificates  S^^s  1921 "        642 

Pennsylvania  R.  R. 

Consolidated  5s  1919 600 

Consolidated  4s  1943 600 

Consolidated  33^s  1945 600 

Consolidated  4s  1948 600 

Collateral  Trust  Sinking  Fund  43^s  1913      611 

Convertible  33/^s  1915 " 611 

Real  Estate  Purchase  Money  4s  1923 612 

Penobscot  Shore  Line  R.  R. 

First  4s  1920 Me.  Cent 422 

Pensacola  &  Atlantic  R.  R. 

First  6s  1921 L.  &  N 393 

Peoria  &  Northwestern  Ry. 

First  3i^s  1926 C.  &  N.  W 167 

Peterborough  &  Hillsborough  R.  R. 

First  4Ms  1917 B.  &  M 106 

Philadelphia  &  Erie  R.  R. 

General  4s,  5s  and  6s  1920 Penna 607 

Philadelphia,  Germantown  &  Chestnut  Hill  R.  R. 

First  43^s  1913 Penna 620 

Philadelphia,  Wilmington  &  Baltimore  R.  R. 

Stock  Trust  Certificates  4s  1921 Penna 609 

[  702  ] 


Pine  Creek  Ry.  System  Page 

First  6s  1932 N.  Y.  C 487 

Pittsburgh  &  ConnellsviUe  R.  R. 

First  4s  1946 B.  &  O .51 

Pittsburgh  &  Lake  Erie  R.  R. 

First  6s  1928 L.  S.  &  M.  S ;{.58 

Second  5s  1928 "  3.58 

Pittsburgh  &  Western  Ry. 

First  Consolidated  4s  1917 B.  &  0 55 

Pittsburgh,  Cleveland  &  Toledo  R.  R. 

First  6s  1922 B.  &  0 57 

Pittsburgh  Junction  R.  R. 

First  6s  1922 B.  &  0 54 

Second  5s  1922 "  55 

Pittsburgh,  McKeesport  &  Youghioghony  R.  R. 

First  6s  1932 L.  S.  &  M.  S 360 

Second  6s  1934 "  360 

Pittsburgh,  Newcastle  &  Lake  Erie  R.  R. 

First  Extended  4s  1917 B.  &  0 56 

Pittsburgh,  Virginia  &  Charleston  Ry. 

First  4s  1943 Pcnna (i02 

Pittsburgh,  Youngstown  &  Ashtal)ula  R.  R. 

First  Consolidated  5s  1927 Penna 643 

Pittsburgh,  Youngstown  &  Ashtabula  Ry. 

First  Series  "A"  4s  1948      Pcnna 642 

Portland  &  Ogdensburg  Hy. 

First  4Ks  1928 Me.  Cent 430 

Portland  &  Rumford  Falls  Ry. 

Consolidated  First  4s  1926 Me.  Cent 427 

Debenture  Sinking  Fund  4s  1927 "  435 

Collateral  Trust  4s  1934 "  43(1 

Portland  Street  Ry. 

First  5s  1916 N.  Y.,  N.  H.  &  II 540 

Portland  Terminal  Co. 

First  4s  1961 Me.  Cent 439 

Portsmouth,  Great  Ealls  &  Conway  R.  R. 

First  4}4s  1937 B.  &  M 100 

Prescott  &  Eastern  R.  R. 

First  5s  1928 A.  T.  &  S.  F 30 

Princeton  &  Northwestern  Ry. 

First  3i^s  1926  .    .    .   " C.  &  N.  W 166 

Providence  &  Springfield  R.  R. 

First  5s  1922 N.  Y.,  N.  H.  &  II 532 

Providence  &  Worcester  R.  R. 

First  4s  1947 N.  Y.,  N.  H.  &  II 554 

[  70:5  ] 


Providence  Securities  Co.                                                                                            System  Page 

Debenture  4.s  1957 N.  Y.,  N.  H.  &  H 559 

Providence  Terminal  Co. 

First  4s  1950 N.  Y.,  N.  H.  &  H BM 

Raquette  Lake  Ry. 

First  5s  1950 N.  Y.  C 510 

Ravenswood,  Spencer  &  Clciivillo  Ry. 

First  6s  1920 B.  &  O f.G 

Rensselaer  &  Saratoga  R.  R. 

First  7s  1921 D.  &  H 259 

Republican  Valley  R.  R. 

First  Sinking  Fund  6s  1919 C,  B.  &  Q 195 

Rock  Island  &  Peoria  Ry. 

Consolidated  First  6s  1925 Rock  Island      070 

Rock  Island,  Arkansas  &  Louisiana  R.  R. 

First  43^s  1934 Rock  Island      676 

Hot  Springs  Western  4s  1939 "  677 

Rock  Island  Improvement  Co. 

Equipment  4i/^s  1913-1915      Rock  Island      682 

Equipment  41/^s  Series  "B"  1913-1915 "  683 

Rome,  Watertown  &  Ogdensburg  R.  R. 

First  Consolidated  5s,  4s  and  SUs  1922 N.  Y.  C 494 

Terminal  R.  R.  First  5s  1918 "  498 

Rumford  Falls  &  Rangeley  Lakes  R.  R. 

First  Sinking  Fund  5s  1937 Me.  Cent 436 

St.  Johnsbury  &  Lake  Champlain  R.  R. 

First  5s  1944 B.  &  M 115 

St.  Lawrence  &  Adirondack  Ry. 

First  5s  1996 N.  Y.  C 508 

Second  6s  1996 "  509 

St.  Louis  Southern  R.  R. 

First  4s  1931 111.  Cent 328 

St.  Paul  &  Duluth  R.  R. 

First  5s  1931 Nor.  Pac 580 

Second  5s  1917 "  581 

First  Consolidated  4s  1968 "  581 

St.  Paul  &  Kansas  City  Short  Line  R.  R. 

First  43^8  1941 Rock  Island      679 

St.  Paul  &  Northern  Pacific  Ry. 

First  6s  1923 Nor.  Pac 577 

St.  Paid  &  Sioux  City  R.  R. 

Fir.st6sl919 C.  St.  P.,  M.  &  0 238 

I  704  1 


St.  Paul,  Minneapolis  &  Manitoba  lly.  System  Page 

Consolidated  Sinking  Fund  fis,  43, 2S  ami  4s  1!):53 (it.  Nor 292 

Montana  Ext.  First  4s  1937 "  203 

Pacific  Ext.  First  4s  1940 "  294 

San  Francisco  &  San  Joaquin  Valley  Ry. 

First  5s  1940 A.  T.  &  S.  F 24 

Santa  Fe,  Prescott  &  Plioenix  Ry. 

First  5s  1942 .\.  T.  &  S.  F 27 

Saranac  &  Lake  Placid  R.  R. 

First  5s  1913 D.  &  H 258 

Sault  Ste.  Marie  &  Southwestern  Ry. 

First  5s  1915 C,  St.  P.,  M.  &  0 235 

Schenectady  &  Duanesburgh  R.  R. 

First  6s  1924 D.  &  H 254 

Schuylkill  River  East  Side  R.  R. 

First  4s  1925 B.  &  0 52 

Sioux  City  &  Pacific  R.  R. 

First  3}is  1936 C.  &  N.  W 161 

Sodu.s  Bay  &  Southern  R.  R. 

First  5s  1924 Pcnna 630 

Somerset  Railway 

First  5s  1917 Me.  Coiil 430 

Consolidated  4s  1950 "  431 

First  &  Refunding  4s  1955 "  431 

South  &  North  Alabama  R.  R. 

Consolidated  5s  1936 L.  &  N 400 

South  West  Pennsylvania  Ry. 

First  Sinking  Fund  7s  1917 Peniui OOR 

Si)okane  Falls  &  Northern  Ry. 

First  6s  1939 Gt.  Nor 299 

Spuyten  Duyvil  &  Port  Morris  R.  R. 

First  33^s  1959 N.  Y.  C 481 

Stafford  Springs  Street  Ry. 

First  5s  1956 N.  Y.,  N.  H.  &  H 546 

Sturgis,  Goshen  &  St.  Louis  Ry. 

First  3s  1989 L.  S.  &  ]\I.  S 351 

Sullivan  County  R.  R. 

First  4s  1924 B.  &  M 116 

Sunbury  &  Lewiston  Ry. 

First  4s  1936 Penna 604 

Sunbury,  Hazelton  &  Wilkes-Barre  Ry. 

First  5s  1928 Penna 602 

Second  6s  1938 "        603 

Superior  Short  Line  Ry. 

First  5s  1930 C,  St.  P.,  M.  &  () 239 

[  705  ] 


Syracuse,  Phoenix  &  Oswo.i^'o  II.  R.                                                                   System  Page 

First  6s  1915 N.  Y.  C. 407 

Tarkio  Valley  R.  R. 

First  Sinking  Fund  7.s  1920 ('.,  13.  &  Q 196 

Taylor's  Falls  &  Lake  Superior  R.  R. 

First  6s  1914 Nor.  Pac 582 

Toledo  &  Ohio  Central  Ry. 

First  5s  1935 L.  S.  &  M.  S 363 

Western  Div.  First  5s  1935      "               3G4 

General  5s  1935 "               365 

St.  Mary's  Div.  First  4s  1951      "               366 

St.  Mary's  Div.  First  Income  4s  1951 "               366 

Equipment  Trust  Notes "               367 

Toledo,  Canada  Southern  &  Detroit  Ry. 

First  4s  1956 Mich.  Cent 457 

Toledo,  Walhonding  Valley  &  Ohio  R.  R. 

First  4>^s  Series  "A"  1931      Penna 645 

First  4Hs  Series  "B"  1933 "            645 

First  4s  Series  "C"  1942      "        645 

Toronto,  Hamilton  &  Buffalo  Ry. 

First  4s  1946 N.  Y.  C 510 

Second  4s  1946 "           511 

Torrington  &  Winchester  Street  Ry. 

First  5s  1917 N.  Y.,  N.  H.  &  H 543 

Troy  &  Boston  R.  R. 

Fir.st7sl924 B.  &  M 113 

United  New  Jersey  Railroad  &  Canal  Co. 

General  4s  1923 Pcinia 618 

General  4s  1929 "        018 

General  4s  1944 "        618 

General  3^3  1951 "        618 

General  4s  1948 "'        619 

Upper  Coos  R.  R. 

First  4s  1930 Me.  Cent 425 

Extension  43^s  1930      ' "  425 

Utica  &  Black  River  R.  R. 

First  4s  1922 N.  Y.  C 500 

Vermont  &  Massachusetts  R.  R. 

Plain  33/^s  1923      B.  &  M 114 

Vermont  Valley  R.  R. 

First  4i^s  1940 B.  &  M 116 

Warren  R.  R. 

First  KrfiMidiriK.'Ii^s  2000 D.  L.  &  W 278 

[  7UG  J 


Wasliington  &  Cohnnhia  River  Ry.  System  Page 

First  Is  1935 Nor.  Pac 584 

Washington  Central  Ry. 

First  4s  1948 Nor.  Pac 584 

Washington  County  Ry. 

First  3}is  1954 Me.  Cent 423 

West  Chester  R.  R. 

First  5s  1919 Peiiiia G05 

West  Jersey  &  Seashore  R.  R. 

First  Consolidated  Sinking  Fund  33/2S  and  4s  1930 Pcnna 626 

West  Shore  R.  R. 

First  4s  2361 N.  Y.  C 494 

West  Virginia  &  Pittsburgh  R.  R. 

First  4s  1990 15.  &  0 61 

Western  New  York  &  Pennsylvania  Ry. 

First  5s  1937 Penna 624 

General  4s  1943 "        624 

Income  5s  1943      "        625 

Western  Pennsylvania  R.  R. 

Consolidated  4s  1928 Penna 605 

Western  Railway  of  Alaliama 

Consolidated  First  4^2^  li^l8 L.  &  N 401 

Wheeling  Terminal  Ry. 

First  4s  1940 Penna 651 

White  &  Black  River  Valley  R.  R. 

First  5s  1980 Rock  Island      678 

Willniar  &  Sioux  Falls  Ry. 

First  5s  1938 Gt.  Nor 297 

Winona  &  St.  Peter  R.  R. 

First  Sinking  Fund  Ext.  7s  1916 C.  &  N.  W 174 

Worcester  &  Connecticut  Eastern  Ry. 

First  41-is  1943 N.  Y.,  N.  H.  &  H 535 

Worcester,  Nashua  &  Rochester  R.  R. 

First  4s  1935 B.  &  M 101 

First  4s  1930 "  101 

First  4s  1913 "  101 

First  4s  1934 "  101 


[  707 


RETURN  TO  the  circulation  desl<  of  any 
University  of  California  Library 
or  to  the 
NORTHERN  REGIONAL  LIBRARY  FACILITY 
Bldg.  400,  Richmond  Field  Station 
University  of  California 
Richmond,  CA  94804-4698 

ALL  BOOKS  MAY  BE  RECALLED  AFTER  7  DAYS 

•  2-month  loans  may  be  renewed  by  calling 
(510)642-6753 

•  1-year  loans  may  be  recharged  by  bringing 
books  to  NRLF 

•  Renev^/als  and  recharges  may  be  made  4 
days  prior  to  due  date. 

DUE  AS  STAMPED  BELOW 


^iAY  0  7  200G 


DEC1120D7 


271805 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 


iiiiiii 


